SIMPLIFIED TAX

Simplified tax is applied in Azerbaijan starting from 2001. If the profit tax is paid from profits, and there should be carried out complex accounting transactions, the simplified tax is paid from the quarterly turnover. To pay it you just need to know the volume of the turnover. This tax is not of a great complexity for taking account and counting.
People and enterprises with low incomes are entitled to pay the simplified tax.
Thus, not stood on the VAT register legal entities with taxable turnover of 150000 manats in the last 12 month period and less, and physical persons involved into entrepreneurial activity with 90000 manats and less can become simplified taxpayers.
Their income does not allow to have a separate accounting department, to allocate staff accountant, to pay him a salary, to buy a computer and other equipment. The state creates such conditions for companies with a low profit that the owner of the enterprise, knowing a little in the calculation is able to maintain his own accounting work. Very often, hairdressers, owners of cafeterias and bars, taxi drivers, owners of kiosks and other small commercial enterprises do so. Depending on the location of activity, level of tax is between 2-4% of total quarterly income. Assume that you have opened the barber-shop near your house and your income in 3 months amounted to 300 manats. You will have to hire an accountant to calculate your income, to maintain bank accountings and other matters. And you just taking a calculator, calculate 4% of 300 manats if your activity is in Baku city (if the hairdresser's was opened in a region, then 2%) and pay the resulting amount to the state. In other words, you have received a profit of 300 manats in 3 months. If you work in Baku, you will pay 12 manats (300x4%=12), if in a region, 6 manats of taxes (300x2%=6).
The reason why the simplified tax in Baku is higher than in a district, is that in the capital live more people than in a district, and so the capital hairdresser will have more customers than his colleague carrying out his activity in a region. As it can be seen, to calculate the simplified tax you need to know the amount of income for three months and calculate taxes with 2% or 4% per cent from it.
Along with this, persons involved in passenger and cargo transportation are also simplified taxpayers. Thus, persons carrying passengers by taxis, calculate simplified taxes by applying special coefficients, determined for the zones of the republic, apply 9 manats for every taxi, persons carrying pasengers by buses-1,8 manats for every sitting place, persons carrying cargo-1 manat per ton depending from the carrying capacity of the vehicle and paying the whole amount to the state, get the “Distinction Sign” from the Ministry of Transport, that confirms it.
At the same time, persons involved into housing construction pay the simplified tax, too. These persons applying special coefficients determined for the zones and using 10 manats for every m² of the total area of the building, calculate the simplified tax in the quarter when the main works started, and pay it to the state budget in equal parts of 12,5 percent until the obligation is completely fulfilled not later than 20th of the month following every quarter.