Tax Accounting and Taxation

Taxation – This refers to the compulsory, individual, and non-refundable payments made by taxpayers, which are the funds and assets owned by taxpayers that are transferred to the state budget and local budgets for the purpose of financing the activities of the government and municipalities.

Tax Audit:

  • Examination of the compliance of the organization with Azerbaijani tax laws and confirmation of the accuracy of tax returns;
  • Consultation on the calculation and payment of taxes by individuals and legal entities;
  • Monitoring of tax inspections. Preparation of appeals against the tax audit report;
  • Assistance in tax disputes:
    • Preparation of appeals to the higher tax authorities,
    • Preparation of applications, complaints, requests, and other procedural documents,
    • Representation of the taxpayer’s interests in court;
  • Defense of responsible persons in criminal cases related to the organization’s tax disputes;
  • Assessment of tax consequences of planned agreements;
  • Establishment of tax planning system;
  • Tax calculation, preparation of tax returns, and calculation of taxes payable under Azerbaijani legislation;
  • Establishment or restoration of tax accounting;
  • Assistance in filling out income tax returns for citizens;
  • Implementation and function of tax policy for tax deduction and accounting purposes;
  • Conducting seminars on tax matters.

Tax Calculation

During the imposition of taxation on business activities, necessary tax documents are prepared. Tax documents are documents that reflect the calculation of taxes, the amount of tax, and the amount of tax liability. Tax documents include the following:

  • Accounting documents;
  • Supporting documents;
  • Tax accounting registers;
  • Notification.

Accounting documents are documents that reflect the amount of tax liability. Separate declaration forms have been determined for each type of tax. Tax accounting documents, which fulfill their function, are prepared by preparing tax returns and are submitted to the tax authority after being signed by the management and chief accountant of the organization.

Supporting documents are documents based on which the calculation of taxes required for tax calculation is made, which explain them and act as research material. For example, we can show invoices issued by sellers for goods (services, works).

Tax accounting registers are general records and initial tax accounting forms intended for tax returns in enterprises. Information to be reflected in tax accounting and initially accounted documents should be collected and systematized in tax accounting records. After the information for the tax accounting period prepared in tax accounting documents is generalized, this information is submitted to the tax returns.