Taxation reforms in focus of business forum

Key issues of the tax reforms were discussed in Baku on April 19 at a business forum organized by Caspian European Club and Caspian American Club, with the participation of Deputy Taxes Minister of Azerbaijan Ilkin Veliyev. More than 100 businessmen from Azerbaijan, Kazakhstan, Russia, Turkey, Iran, EU, as well as representatives of international organiza¬tions and heads of the diplomatic missions accredited in Azerbaijan attended this business forum.

Veliyev, addressing the business forum, spoke about recent reforms passed in the taxation system in order to support business and export-oriented enterprises, Azertac reported.

The official emphasized that the Ministry of Taxes is always open for discussions with entrepreneurs and public organizations they represent, and considers such discussions very useful in terms of development of entrepreneurship and addressing the problems facing it, as well as development of partnerships between the tax authorities and business structures.

Having informed the forum attendees about the latest changes in the tax legislation and administration, Veliyev said the changes opened the way to a qualitatively new tax system and large-scale reforms in this field.

The new administrative mechanism based on the principle of “Individual approach” enables to differentiate the approach to taxpayers, to implement more efficient, flexible and transparent administration.

The main approach is to differentiate the principles of working with small and medium-sized business entities, large enterprises and en¬terprises of a special regime to ensure an individual approach to each business group, and to properly distribute a financial and administrative burden.

Speaking about the tasks facing the tax system, he noted the importance of increasing the regulatory role of tax policy, which is an important direction of the economic policy and is considered an effective tool in regulating business activities, creating a favorable, transparent and attractive tax environment, bringing tax administration to a new level and improving services for entrepreneurs.

Having recalled that the changes in the tax legislation came into effect on January 1, 2017, Veliyev noted that these changes will serve to create more favorable conditions for the development of small and mediumsized businesses, increase the level of mutual trust between the tax authorities and business entities, encourage investment in the economy through increasing the attractiveness of the tax environment.

The Taxes Ministry is developing proposals to expand the taxable base, Veliyev told reporters on the sidelines of the event.

Proposals are developed in accordance with the work plan approved in the framework of the implementation of the Strategic Roadmap on the Prospects of the National Economy.

"The proposals mainly provide for further expansion of the taxable base, as well as the granting of additional rights to small and mediumsized businesses, in particular with a view to encouraging exports," Veliyev said.

In addition, during this week new rules of tax accounting will be approved in various spheres of the Azerbaijani economy, according to the Deputy Minister.

“This has nothing to do with accounting. These rules will allow fixing the documentation, where a taxpayer's activities and the amount of the taxpayer’s remuneration are specified,” he said, adding these activities may be related to trade, public catering, services and other spheres.

All documents are ready, and the rules will be adopted this week, said Veliyev.