Tax debts to be written off
By Nigar Abbasova
The Azerbaijani government plans to write off debts of some 26,000 taxpayers. Advisor to Tax Minister Alakbar Mammadov told reporters that the amount of the debt is estimated at nearly 350 million manats ($201.7 million).
He mentioned that so far the government has written off debts of more than 69,000 taxpayers.
The issue came into the spotlight following the adoption of a law on Regulation of tax debts of taxpayers as of January 1, 2017.
The document envisages writing off of two types of tax debts, including cancellation of all interest accrued for non-payment of debt and writing-off of the financial sanctions. The law aims to improve financial performance of entrepreneurs, promote the development of entrepreneurship and create more favorable business environment in the country.
Under the document, if a tax payer repays half tax sanctions during January-February period, other 50 percent will be written off. If some 70 percent of financial sanctions are repaid in January-March, remaining 30 percent will be written off.
As of December 2016, the total tax debt in Azerbaijan amounted to 1,527 billion manats, including active debt - 386.4 million manats ($222.6 million) and financial sanctions - 237.1 million manats ($136.6 million). As many as 700,000 taxpayers are currently registered in the country.
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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova
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