Tax debts of enterprises under privatization to be written off

15:18 - 5 April 2019

April 5, Fineko/ Tax debts of most enterprises to be set out for privatization will be written off.

This relates to state property to be privatized after 1 March 2019.

The State Committee on Property Issues, which acts as a seller, together with the Ministry of Taxes, clarified the amount of tax debts of privatized enterprises. Currently, 140 enterprises are ready for privatization. The total amount of property and land tax of those enterprises is AZN 10 million.

Also, the recently-endorsed Regulation says about before-the-law-enters-into-force-writing off of tax debts of enterprises, whose privatization finished after the entry into force of the new law. If the entrepreneur who privatizes his company pays 30% of the debt within 1 year from the date of privatization, the debt will be written off. If 50% of the debt is repaid within 2 years, the remaining debt is liquidated. As in the case of payment of 70% of the company's debt within 3 years, the remaining debt is repaid.

In addition, if there is a court ruling on the mandatory payment of debts, the new rules will also be applied to unpaid parts of the debt available on the date of entry of the law.