15:41 - 27.12.2023
December 27, Fineko/abc.az. As in previous years, this time the main objectives of the amendments to the Tax Code are to optimize the tax burden of business entities, stimulate entrepreneurial activity, reduce the tax burden of the population with social tax benefits, and improve measures to combat the shadow economy.
ABC.AZ reports that revenues from regional tourism are generated mainly due to seasonal activities, and the rest of the time the income level in this sector is sharply decreasing. The asset value of accommodation facilities in the tourism sector is quite high. Thus, the real estate tax creates significant tax burden for seasonally operating enterprises, being fixed expenses.
In order to develop regional tourism and reduce permanent tax costs, tax incentives are provided to tourism entities (hotels, hotels and sanatoriums). To this end, amendments were made to the Tax Code on the reduction of property tax for real estate used in hotel, hotel and sanatorium activities from January 1, 2024 (with the exception of the period of temporary cessation of entrepreneurial activity in accordance with Article 16.3 of the Tax Code) by 75% for a period of 3 years in other cities and districts of the republic, with the exception of Baku, Sumgayit, Khirdalan and Absheron district. The main purpose of the changes is to support regional tourism and optimize fixed business tax expenditures.
