The Tax Code of the Republic of Azerbaijan

Article 219. Subject of taxation
219.1. The gross volume of cash flow obtained for goods (works, services) and property provided by the taxpayer (with exception of taxpayers, stipulated under Article 218.4 of this Code) (with exception of taxpayers, engaged in activities stipulated under Article 218.2 of this Code), as well as non-sale incomes (excluding income fromwhich the taxwas withheld at the source of payment) within reporting period shall be subject to taxation.
219.2. Motor transports, owned or used by taxpayers, specified in Article 218.4.1 of this Code, are subject to taxation.
219.3. For those engaged in construction of buildings, the object of taxation is residential and non-residential building under construction, except for the part allocated to the state, including premises of detached private, individual residential and holiday homes, constructed for provision. For the purposes of this article, the total area of each floor of constructing building is subject to taxation.
219.3-1. With regard to the persons specified in Article 218.4.3 of this Code, the objects of taxation are residential and non-residential premises under their ownership, including residential and non-residential premises purchased from the persons engaged in construction of buildings.
219.4. For the operator of bet on sport games, the object of simplified taxationare fundsreceived fromparticipants of the competition, and for the sellerof sportsbetting games -commissionsgiven to himby the operator.
219.5. A legal entity, paying simplified tax, is not a payer of VAT, profit tax and property tax, and the physical person (including physical person, engaged in entrepreneurial activity without establishing a legal entity) - is not a payer of income tax and VAT.
219.6. Legal entities paying simplified taxes in accordance with Article 218.1.1.2 of this Code shall not be subject to profit tax as per such activityand property tax, and natural persons performing entrepreneur activities without formation of legal entity shall not be the payers of income tax for such operations.
219.7. Volumeof productionof agriculturalproducts(includingby industrial process) from the sale ofagricultural productsproduced by them,is not included inthe object of taxationunder the simplifiedtaxwithin 5-year period beginning from 1 January2014.

219.8. Nurseries,nursery-kindergartens, kindergartens, special kindergartensand children's homesare exempt fromthe simplified taxfor 10-yearperiod from1 January 2014.