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trIs an entrepreneur engaged in sand and gravel extraction required to file a mineral tax return?
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Is an entrepreneur engaged in sand and gravel extraction required to file a mineral tax return?
One of the questions frequently encountered in practice is the following: Is an individual subject to the 2% simplified tax regime required to file a monthly mineral tax return if they also engage in sand and gravel extraction as an additional business activity?
Based on the provisions of the Tax Code, the answer is yes.
According to Article 214 of the Tax Code, individuals and legal entities extracting mineral resources from the subsoil within the territory of the Republic of Azerbaijan (including the sector of the Caspian Sea belonging to Azerbaijan) are considered taxpayers of the mineral tax.
This means that being subject to the simplified tax regime for the main business activity does not exempt an entrepreneur from mineral tax obligations. If the additional business activity is 0812101 – Extraction of sand and gravel for industrial and construction purposes, and this activity is actually carried out, a separate mineral tax liability arises.
Under the legislation, the reporting period for the mineral tax is one calendar month. Therefore, the taxpayer must submit the mineral tax return to the tax authority no later than the 20th day of the month following the reporting month and pay the calculated tax to the state budget.
In conclusion, even if you are subject to the 2% simplified tax regime, you must submit a monthly mineral tax return and pay the assessed mineral tax if you engage in sand and gravel extraction as an additional business activity. This obligation is separate from and independent of your simplified tax obligations.
One of the questions frequently encountered in practice is the following: Is an individual subject to the 2% simplified tax regime required to file a monthly mineral tax return if they also engage in sand and gravel extraction as an additional business activity?
Based on the provisions of the Tax Code, the answer is yes.
According to Article 214 of the Tax Code, individuals and legal entities extracting mineral resources from the subsoil within the territory of the Republic of Azerbaijan (including the sector of the Caspian Sea belonging to Azerbaijan) are considered taxpayers of the mineral tax.
This means that being subject to the simplified tax regime for the main business activity does not exempt an entrepreneur from mineral tax obligations. If the additional business activity is 0812101 – Extraction of sand and gravel for industrial and construction purposes, and this activity is actually carried out, a separate mineral tax liability arises.
Under the legislation, the reporting period for the mineral tax is one calendar month. Therefore, the taxpayer must submit the mineral tax return to the tax authority no later than the 20th day of the month following the reporting month and pay the calculated tax to the state budget.
In conclusion, even if you are subject to the 2% simplified tax regime, you must submit a monthly mineral tax return and pay the assessed mineral tax if you engage in sand and gravel extraction as an additional business activity. This obligation is separate from and independent of your simplified tax obligations.