Taxes in Azerbaijan: property tax.

1. taxpayers - property tax is paid by individuals and companies that have a tax object. If a non-resident conducts business activity in Azerbaijan through a permanent establishment, property tax is paid only in respect of fixed assets connected with that permanent establishment. 2. tax object – for individuals: buildings or parts thereof located in Azerbaijan and owned as private property vehicles owned by resident individuals. water and air transport means. for companies and individual entrepreneurs: fixed assets recorded on the balance sheet. 3. taxable base - for individuals: for buildings – the area (for residential premises, the portion exceeding 30 square meters) for water and air transport – engine volume (cubic centimeter), or if there is no engine, the market value for companies and individual entrepreneurs: the average annual residual value of fixed assets. 4. taxable period - for companies and individual entrepreneurs, the taxable period is the calendar year. For individuals, the tax is calculated for the current year. 5. tax rate - for individuals for buildings (per 1 sq.m): Baku: 0.4 manat (a coefficient of 0.7–1.5 may apply in Baku) Ganja, Sumgait and Absheron: 0.3 manat other cities and district centers: 0.2 manat district-level cities, settlements and villages: 0.1 manat for individuals for water and air transport: 0.02 manat per 1 cubic centimeter of engine volume if there is no engine – 1 percent of the market value for companies and individual entrepreneurs: 1 percent of the value of fixed assets 6. tax calculation procedure - individuals: for buildings: area x rate (for residential premises, only the portion exceeding 30 sq.m is considered) if there are several owners: the tax is divided proportionally according to ownership share for water and air transport: engine volume x 0.02 manat; if there is no engine – 1 percent of the market value companies and individual entrepreneurs: average annual residual value x 1% current payments are made quarterly as 20% of the previous year’s tax amount. 7. tax payment procedure and timing - individuals: the municipality provides an electronic payment notice no later than August 1 the tax is paid in equal parts by August 15 and November 15 property tax of individuals is paid to the local (municipal) budget companies and individual entrepreneurs: the annual tax return is submitted no later than March 31 of the year following the reporting year the annual tax is paid by that deadline current payments are made no later than the 15th day of the second month of each quarter. property tax of companies and individual entrepreneurs is paid to the state budget. Note: There are numerous exemptions and reliefs under property tax (for example, certain state bodies, specific categories of assets, industrial and technology park residents, micro-entrepreneurs, etc.). In each specific case, the type of property and its purpose of use must be separately reviewed to determine the applicable relief.