Azernews.Az

By Trend

It is being proposed in Azerbaijan to write off tax debts for state facilities that are going to be put up for privatization, Trend reports.

The corresponding bill has been submitted for discussion to the Azerbaijani parliament. The write-off will affect property and land taxes that were on the outstanding balance of state facilities on March 1, 2019.

As noted, once the law enters into force, the debts on land and property tax for state-owned enterprises [i.e. debts that have been in place prior to the adoption of the law] will be written off under the following conditions:

- if 30 percent of debts will be repaid within 1 year after the privatization of state property, the remaining 70 percent will be written off.

- if 50 percent of debts will be repaid within 2 years after the privatization of state property, the remaining 50 percent will be written off.

- if 70 percent of debts will be repaid within 3 years after the privatization of state property, the remaining 30 percent will be written off.

This law also covers debts that have not been paid after a court decision on compulsory payment.

The law, if adopted, will enter into force on March 1, 2019.

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