If your company's balance sheet includes buildings, equipment or vehicles, property tax applies to you too. If you use a plot of land, land tax comes into play as well. In this article we explain, in plain language, the main rate and deadlines for both taxes based on the Tax Code.
Who pays property tax and what is the rate?
Enterprises and individual entrepreneurs pay property tax at a rate of 1 percent of the value of their fixed assets (Tax Code, Article 198.2). The value of fixed assets for tax purposes is determined under Article 202 of the Code.
Simply put, the tax base is the buildings, equipment and other fixed assets recorded in the company's accounts. That is why fixed assets must be properly accounted for in order to calculate property tax correctly.
When are current property tax payments made?
During the year, enterprises pay property tax in instalments, as current payments. The rule is: no later than the 15th of the second month of each quarter, a payment of 20 percent of the previous year's property tax is made (Tax Code, Article 201.3).
The second month of each quarter falls on these dates:
| Quarter | Current payment deadline |
|---|---|
| Q1 | 15 February |
| Q2 | 15 May |
| Q3 | 15 August |
| Q4 | 15 November |
For example, if the company's property tax last year was 1,000 manats, each current payment is 200 manats (20 percent of 1,000 manats).
When is the annual property tax return filed?
After the year ends, the enterprise submits its annual property tax return to the tax authority no later than 31 March of the following year (Tax Code, Article 201.5). The return shows the tax calculated for the year and takes into account the current payments made during the year.
Land tax: when do companies file the return?
Enterprises calculate land tax annually and submit the return to the tax authority no later than 31 January of the year following the reporting year (Tax Code, Article 208.2).
The rule is different for individuals: their land tax is calculated by the tax authority (Tax Code, Article 208.3).
Practical checklist
- Is the list and value of fixed assets up to date in the accounts?
- Is the previous year's property tax amount known (current payments are based on it)?
- Are the quarterly current payment dates marked in the calendar?
- Is the land tax return planned by 31 January and the property tax return by 31 March?
- Have you checked whether the incentives in Article 199 apply to the company?
Summary
- Enterprises and individual entrepreneurs pay 1% property tax on the value of fixed assets (Article 198.2).
- Current payment: by the 15th of the second month of each quarter, 20% of the previous year's tax (Article 201.3).
- Annual property tax return: by 31 March of the following year (Article 201.5).
- Land tax return (enterprises): by 31 January of the following year (Article 208.2).
If you have questions about property and land tax calculations and returns, message Estavor Accounting on WhatsApp: +994 77 734 10 12.
📚 Sources
🌐 The original article is in Azerbaijani; the official sources are available in Azerbaijani.
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