TAX INSPECTION to be Held on Electronic Sales of Handicrafts by Persons with Disabilities

A change has been made to the decision "On the approval of a number of normative legal acts for the purpose of improving tax administration."

In this regard, Minister of Economy Mikayil Jabbarov signed a relevant decision.

The procedure for taxing income obtained by persons with disabilities from the sale of their handicrafts has been changed.

According to the decision, the Ministry of Labor and Social Protection of Population, in its capacity as the Sustainable and Operative Social Security Agency, will be obliged to withhold tax at the source of payment for income obtained from the aforementioned sales and to submit a declaration to the tax authority no later than the 20th of the month following the end of the quarter regarding the withheld taxes.

Thus, in order to investigate cases of tax withholding at the source of payment at a rate of two percent from the income obtained from the specified sales, without deducting expenses, desk tax audits will be conducted outside the Automated Tax Information System.

During the inspection of the tax withheld at the source of payment, the correct determination of the tax object related to the income obtained from the aforementioned sales must be investigated.

According to existing legislation, persons with disabilities do not pay social tax for the online sale of their handicrafts. To simplify tax administration for persons with disabilities and support their self-employment initiatives, a 2 percent tax is withheld at the source of payment from the income obtained from the sale of handicrafts.

Additionally, a special electronic portal will be created for the sale of their handicrafts, where persons with disabilities will register.