Azerbaijani Economy Ministry talks financial support for entrepreneurs affected by COVID-19

  08 April 2020    Read: 851
  Azerbaijani Economy Ministry talks financial support for entrepreneurs affected by COVID-19

The Azerbaijani Ministry of Economy has disclosed the mechanisms for rendering financial support to the entrepreneurs affected as a result of coronavirus (COVID-19).

The Cabinet of Ministers approved the Action Plan on April 4, 2020 to implement the item 10.2 of the Azerbaijani president’s order # 1950 dated March 19, 2020" “On a number of measures to reduce the negative impact of coronavirus (COVID-19) and sharp fluctuations as a result of coronavirus in the global energy market and stock market, on the economy of the Republic of Azerbaijan, macroeconomic stability, issues of employment in the country and business entities".

The Ministry of Economy must implement the measures which have been divided into three stages. At the initial stage, it is planned to pay a certain part of salaries to employees involved in the spheres affected as a result of the pandemic, render financial support to individual (micro) entrepreneurs and give tax incentives to protect the economic activity.

In this regard, the Ministry of Economy informs taxpayers that the state financial support worth 215 million manat ($126.5 million) is planned to be rendered to 300,000 entrepreneurs to pay a certain part of salaries to the hired employees (who have an employment contract) working in the sectors affected as a result of the pandemic.

A certain part of the salary and the corresponding social insurance contributions that must be paid to the employees within a short period will be transferred to the bank accounts of employers as part of this mechanism in the internet tax administration (www.e-taxes.gov.az ), based on the applications submitted through the existing electronic accounts.

According to the ministry, notifications about the “financial support program in connection with the pandemic” will be sent to all registered taxpayers’ personal electronic accounts, as well as via SMS.

Taxpayers must fill out an electronic application form in the appropriate section of the internet tax administration in their personal accounts in "financial support program in connection with a pandemic" subsection in "remuneration appeal" section.

The registry data (taxpayer name, VOEN, bank accounts, number of employees upon employment contracts as of March 1 and the date of appeal) will be automatically indicated in the application form.

Taxpayers must online indicate additional information about the spheres of activity affected as a result of the pandemic, business entities (facilities), the number of employees in the affected sphere and the payroll fund.

In case of verification of this data, a notification is sent to a taxpayer. The payments will be carried out in two stages in April and May.

It is allowed to transfer the financial support funds allocated by the bank only for paying salaries. Taxpayers cannot use these funds for any other purposes and this issue will be strictly controlled.

The information on the taxpayers who will be able to get funds will be available on the website of the Ministry of Economy, and the media.

Within this mechanism, the Azerbaijani government will render financial support in the amount of 80 million manat ($47 million) to 300,000 individual entrepreneurs involved in the spheres affected as a result of the pandemic.

This financial assistance will cover the taxpayers who paid taxes, mandatory state social insurance contributions and unemployment insurance contributions in 2019.

To ensure financial support as soon as possible, individual entrepreneurs submit an application through the electronic systems available in the internet tax administration (www.e-taxes.gov.az ) while the funds allocated from the state budget are transferred to the bank accounts of these individual entrepreneurs.

If the amount of payment of an individual (micro) entrepreneur to the state budget in 2019 is less than 250 manat ($147), the financial support in the amount of 250 manat ($147) will be rendered.

All taxpayers should regularly monitor the information updates in electronic cabinets through www.e-taxes.gov.az.

 

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