Disciplined taxpayers to get benefits

Disciplined taxpayers of Azerbaijan will get tax incentives, said Samira Mustafayeva, head of the administration on tax policy and strategic research at the Taxes Ministry, while addressing a meeting with the members of American Chamber of Commerce in Azerbaijan (AmCham).

She mentioned that the issue is reflected in the presidential order on improvement of tax administration and approval of directions of reforms, to be held in the tax sphere of the country in 2016.

AmCham earlier welcomed the presidential order, mentioning that a number of recommendations on improvement of tax administration and facilitation of business doing in the country, proposed by the chamber to the government of Azerbaijan in early 2016 were reflected in the order.

Main directions of ongoing tax reforms will include improvement of the tax legislation, reduction of tax burden, extending rights of taxpayers, ensuring the participation of taxpayers in the tax audit, expansion of the scope of electronic tax audit, aiming to minimize direct contact between taxpayers and tax authorities, as well as implementation of Tax Free system not only in airports, but in other border checkpoints.

Mustafayeva also said that special attention would be paid on VAT (value added tax) differentiation, introduction of stable taxation rates, preliminary determination of tax liabilities, preparation of the mechanism of social awareness, as well as expansion of Call-centre services.

Being of great significance for the country, the tax reforms are expected to stipulate business doing in the country, particularly in the sphere of small and medium-sized entrepreneurship.

Azerbaijan currently ranks 63 out of 189 countries, with 67.8 points out of a possible 100 in the World Bank’s ease of doing business index.