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Tax Update

Tax Update

Tax Update

Below you can see the procedure of filing an online application for the partial state compensation for the employees working in the areas affected by the pandemic.

The Government plans to provide financial support to entrepreneurs in the amount of AZN 215 mln. for the partial compensation of 300 thousand contracted employees in the areas affected by the pandemic.

Under this arrangement part of the salaries and respective social insurance fees that the taxpayers must pay to their employees will be transferred to employers’ bank accounts.

For this purpose, all registered taxpayers will receive notifications at their personal online cabinets (www.e-taxes.gov.az) and SMS on their mobile phones about “Pandemic financial support program”.

To get financial support, taxpayers must select “Labour compensation application” under “Pandemic financial support program” section in their personal cabinet at the online tax page and fill in the appropriate application. To do this go to the webpage e-taxes-gov.az and click “Login” (“Giriş”) on the top left of the page.

To access the system, enter the username, password and code granted by the Ministry of Taxes or choose e-signature.

Choose one of the above-mentioned access methods and type it in the appropriate box. Under the “Section” (“Bölmə”) choose “Online office and e-invoice” (“Onlayn kargüzarlıq və e-VHF”) and click “Enter” (“Daxil ol”). Once accessed click “New application” (“Yeni müraciət”) in the menu. In the pop-up window choose the Ministry of Taxes (“Vergilər Nazirliyi”) in the section “To” (“Kimə”), “Request” (“Ərizə”) in the section “Application type” (“Müraciətin növü”), and “Labour compensation support program” (“Əmək ödənişləri ilə bağlı dəstək proqramı”) in the section “Document type” (“Sənədin növü”), and click “Accept” (“Qəbul”).

Once accepted a new window with the description of “The liabilities in relation to the financial support to entrepreneurs affected by the Coronavirus pandemic” will appear . Click “I agree”. This will open an application form for the labour compensation support program. In the “Registration details” section (“Reyestr məlumatları”) tax authority, taxpayer’s first and last name, TIN and the number of employees according to the employment contracts will be filled automatically. Choose the settlement account from the “Bank accounts” (“Bank hesabları”) where the funds will be transferred. Select the code of the main activity of the taxpayer in the “Areas of activity” box (“Fəaliyyət sahələri”) under “Parameters of the activity affected by the pandemic” section (“Pandemiyadan zərər çəkmiş fəaliyyət növü üzrə göstəricilər”). Type in the number of employees affected by the pandemic and click “add” (“əlavə et”).

The user must click “add” (“əlavə et”) button both when adding the number of employees affected by the pandemic and when adding the list. When all the information is filled in click “Next” (“İrəli”). Verify the information and click “Accept” (“Qəbul”) to confirm it. Then click “Close” (“Bağla”). The application is completed.

Information provided in the application is verified against the records database automatically. If no inconsistency is identified the information is automatically accepted and the taxpayer receives a notification. If the system identifies an inconsistency the taxpayer can correct it and re-apply.

For the compensation the main criterion will be the average monthly wage which is AZN 712,00. If the salaries of some of the employees working in the entity exceed the average monthly wage their compensation will be calculated in the amount not exceeding the average monthly wage limit.

The state financial aid for April will be paid in two stages, 50% being paid in April, and the other 50% in May.

Attention! The financial aid allocated by a bank is provided only for transferring salaries. Taxpayers are not permitted to use these funds for other purposes.

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