The Tax Code of the Republic of Azerbaijan

Article 217. Procedure for calculating tax, term for its payment and submission of the tax return
217.1. Tax on trade shall be calculated on minerals stipulated in Article 216.1 hereof- with application of the appropriate tax rates to the wholesale price of minerals mined from the subsurface of the earth, and on minerals stipulated in Article 216.2 hereof - with application of the appropriate tax rates to each cubic meter of minerals mined from the subsurface of the earth
217.2. Royalties shall be paid after the extraction of a product on a monthly basis on no later than 20^th day of the month following the accounting month.
217.3. Payers of royalties shall submit tax returns on a monthly basis no later than the 20^th day of the month following the accounting month, on the mining tax to the tax authorities, on taxes to be paid to local budgets- to municipalities.
217.4. The amount of tax calculated in accordance with procedures stipulated by this Article shall be considered as deductions not limited by Article 119 of this Code.
217.5. The mining tax (with exception of mining tax on construction materials of local importance) shall be paid to the state budget. The mining tax on construction materials of the local importance shall be paid to the local (municipal) budget.
Ceramide clays, mortar sand, raw materials from high-strength crushed stone are considered as the construction materials of local importance.
217.6. When calculating the mining tax in accordance with article 217.1. of this Code for the production of oil and gas, the volumes of oil and gas re-injected back to well due to the technological processes shall be deducted from the volumes of oil and gas produced in accordance with regulations established by relevant authorities of executive power.
Chapter XVII. Simplified tax
Article 218. Payers of Simplified Tax
218.1. Persons who have the right to become payers of simplified tax:
218.1.1. entities, who are not registered for VAT purposes in view of the provisions of Chapter XI of this Code and whose volume of taxable transactions in any month (months) during a consecutive period of 12 months does not exceed 200,000 manats;
218.1.2. entities, involved in trading and (or) public catering activities, whose volume of taxable transactions in any month (months) during a consecutive period of 12 months exceeds 200,000 manats;
218.1.3. entities involved in construction of buildings (legal or natural persons, who at the expense of their own or raised funds, by means of its own resources or through the involvement of the specialized professional customer or contractor, built the building to meet the individual (personal) needs of the population or for commercial purposes, and who are the owners of this building or completed structure).
218.2. A taxpayer who has the right to be the payer of the simplified tax (with exception of taxpayers, stipulated in Article 218.4 of this Code), no later than 20 April of each year, submits the respective declaration or written notice of the fact that he do not use the right noted in article 218.1 of this Code, to the tax authority, where he is registered. Unless otherwise is stipulated in this Code, the taxpayer is not entitled to change the chosen method until the end of the calendar year. If the taxpayer does not submit the declaration or written notice within the mentioned period, the tax authority will apply the method chosen by the taxpayer in the previous fiscal year. The taxpayer starting a new activity during year, applies the method, specified by him in the application for tax registration.
218.3. The person referred to in Article 218.1.3 of this Code, within 30 days from the start of construction and installation work is required to notify the relevant executive authority on the chosen method of taxation. In this case, the person is not entitled to change the chosen method of taxation until the completion of these construction and installation works.
218.4. Notwithstanding the provisions of Article 218.1 of this Code, the following persons are the payers of simplified tax:
218.4.1. persons engaged in the passengers and cargo transportation (including by taxi) in the territory of the Republic of Azerbaijan using their own motor vehicles or motor vehicles their in use (with the exception of international cargo and passenger transportation), or performing such transportation based on agreement through other persons;
218.4.2. persons who are the operators and sellers of bet on sport games;
218.4.3. persons engaged in the provision of their own residential and non-residential premises (except in the case of the residential in which the individual has registered place of residence for at least five (5) years, and the provision in the cases provided for in Articles 102.1.3.2, 102.1.18, 106.1.16, 144.1.1 and 144.1.2 of this Code).
218.5. The following persons do not have the right to be simplified taxpayer:
218.5.1. entities, producing excisable goods;
218.5.2. credit and insurance organizations, investment funds, professional securities market participants, pawnshops;
218.5.3. non-governmental pension funds;
218.5.4. persons, receiving income from the lease of property and royalty,
218.5.5. natural monopoly subjects established by the relevant executive authority;
218.5.6. persons, with the depreciated value of fixed assets owned by them at the beginning of the year exceeding 1.000.000 manats (except persons specified in Articles 218.1.2, 218.1.3 and 218.4 of this Code).