With the purpose of creating favorable business environment for the development of entrepreneurship in the country and facilitating the process of state registration of entrepreneurship entities, Ministry of Taxes of the Republic of Azerbaijan has been tasked with conducting unified state registration of entrepreneurship entities by the Executive Order No. 2458 dated 25 October 2007 “On measures to ensure the organization of entrepreneurship activity on “one stop shop” principle”. With introduction of the “one stop shop” system, the start-up procedures in Azerbaijan reduced from 15 to 2, whereas time spent on it dropped from 30 to 2 days. The number of registered individuals and legal entities has significantly increased since introduction of the system.

According to Doing Business 2017, out of 27 reforms implemented in Azerbaijan in 2009-2016, 7 are related to registration and 5 to taxation area. Distance to frontier score of Azerbaijan in “Starting Business” indicator made 97.75%, suggesting our country is in line with high standards in the world.

Today, “Starting Business” indicator ranks our country 5^th in the world and 1^st among post-soviet countries.

In Global Competitiveness Report 2016-2017, our country climbed 3 levels up in comparison with the previous report and ranked 37 among 138 countries, thus maintaining top position in the CIS region.

Ministry of Taxes provides 63 electronic services to taxpayers, including services such as “Electronic VAT payments and refunds through single deposit account”, “Acceptance of electronic tax invoice” (http://www.taxes.gov.az/modul.php?name=e-xidmetler). At the same time, the application of e-invoice (bill of parcels) has started since April 1, 2017.

Individual entrepreneurs enjoy the benefits of being registered online without coming to tax authorities since 2011, whereas the same applies to local legal companies (LLC) starting from 2012. Electronic registration of taxpayers is carried out through electronic signature (https://login.e-taxes.gov.az/login/).

An agreement on the exchange of electronic information between the Ministry of Taxes and the Ministry of Labor and Social Protection of Population of the Republic of Azerbaijan was signed in February 2016 with a view to control electronic registration of labor contracts concluded by employers.

Tax Code of the Republic of Azerbaijan contains 129 tax privileges and exemptions. As a result of recent amendments and additions made to the Tax Code with the aim of promoting investment and favorable business environment, the number of tax privileges and exemptions has increased.

 

Main directions of tax privileges, exemptions and other incentives

for entrepreneurial activity and investments

 

* A number of decrees and executive orders were issued by the President of the Republic of Azerbaijan within industrialization policy conducted in the country, which marked establishment of industrial parks of Sumgayit Chemistry, Balakhani, Mingachevir, Garadagh and Pirallahi in the fields of chemistry, recycling, light industry, shipbuilding and pharmacy respectively, as well as Mingachevir, Pirallahi and ANAS high technologies parks, and Neftchala and Masally industrial quarters.

* In order to stimulate investments in industrial and technology parks, starting from 1 January 2013, legal entities and individuals involved in entrepreneurial activities without forming a legal entity, who are the residents of industrial or technological parks, have been exempted from income, property and land taxes for the duration of 7 years from the reporting year, in which they were registered in those parks.

Moreover, import of technics, technological equipment and facilities, on the basis of relevant supporting document by the residents of industrial and technological parks for the purposes of construction of production facilities, as well as for carrying out research and experimental construction works in the industrial and technological parks, has been exempted from VAT and customs duties for the duration of 7 years from the date of registration in those parks.

* Import, on the basis of supporting document issued by the relevant state agency, of all kinds of goods by the resident of Garadagh Industrial Park involved in shipbuilding activity for the purposes of the same activity has been exempted from VAT over the period of 5 years starting from 1 May 2016.

Also, provision of goods, works and services by contractor to the resident of Garadagh Industrial Park involved in shipbuilding activity, as well as provision, on the basis of a direct contract, of goods, works and services by subcontractor to the contractor for the purposes of the same activity, is taxed at zero (0) rate VAT over the period of 5 years beginning from May 1, 2016.

* For the purpose of promoting investments, starting from 2016, individuals and legal entities that have been granted an investment promotion certificate have been exempted from property and land tax, as well as from 50 percent of their income for the duration of 7 years from the date of receipt of that certificate.

Import, on the basis of supporting document, of technics, technological equipment and facilities by individuals and legal entities that have received an investment promotion certificate has been exempted from VAT and customs duties for the duration of 7 years from the date of receipt of that certificate.

(Investment promotion certificate is issued to legal entities and individual entrepreneurs by the Ministry of Economy in accordance with the rules approved by the Decree of the President of the Republic of Azerbaijan No 745 dated 18 January 2016)

* Individuals and legal entities involved in the production (including industrial production) of agricultural goods have been exempted from income (corporate) tax, VAT, property tax and simplified tax arising from the same activity up until 1 January, 2019.

* Income from annual interest being paid by local bank, as well as branch of the foreign bank operating in the Republic of Azerbaijan, and also income from an issuer-paid dividend, discount (the difference resulting from placement of bonds at a value less than their face value) and interest on investment securities have been exempted from income tax within a 7-year period starting from 1 February 2016. 

* Non-residents, whose taxable income is from Azerbaijani source, and who are not taxed at source of payment, have the right to exercise their tax liability in the Republic of Azerbaijan through the tax agent designated by them without registering with the tax authorities.

* According to the Decree of the President of the Republic of Azerbaijan No 811 dated 1 March, 2016 on Additional Measures to Promote Export of Non-Oil Products, persons engaged in the export of non-oil products in the territory of the Republic of Azerbaijan, are paid “export promotion” at the expense of the state budget depending on the share of local components used in the production process, share of value of non-oil products generated in the territory of the Republic of Azerbaijan and the type of the same exported products. The base amount of “export promotion” is 3 (three) percent of the customs value of the actual exported goods as reflected in the export customs declaration for export operations.

* Law of the Republic of Azerbaijan on “Customs Tariff” No. 687-IVQ dated June 13, 2013 (http://e-qanun.az/framework/26154) provides for exemptions in 20 directions on levying customs duties in respect of goods subject to customs clearance. At the same time, where local resources of raw materials prove insufficient to meet production needs, the Cabinet of Ministers of the Republic of Azerbaijan may, with a view to ensure the development of a specific field, introduce tariff preferences for a specific period of time for the import of production-oriented raw materials and modern technology.

* Republic of Azerbaijan has signed bilateral agreements on the elimination of double taxation with 53 states, of which 49 have been enacted and are in force. At the same time, similar documents signed with Denmark, Spain, Israel and Jordan will come into force after the completion of relevant procedures. 10 Bilateral and 2 multilateral Agreements were signed on “Cooperation and mutual assistance in tax compliance”. 7 bilateral and 1 multilateral Agreements were signed on “Cooperation in the fight against tax crimes”. Agreements on “Bilateral cooperation” were signed with eight countries.

* Based on the Production Sharing Agreements (PSA), a special tax regime has been introduced in oil and gas sector since 1994, with currently 23 existing agreements ensuring tax privileges for the taxpayers operating in special tax regime in respect of all taxes with the exception of income tax.

* For the purpose of protection of foreign investments in the territory of the Republic of Azerbaijan, the Law of the Republic of Azerbaijan “On Protection of Foreign Investments” No 57 dated 15 January 1992 was adopted (http://e-qanun.az/framework/7000). The law focuses on attracting and rational utilization of foreign material and financial resources, advanced foreign technics and technology, management practices in the country’s economy, and ensuring the protection of rights of foreign investors. At the same time, according to the Law of the Republic of Azerbaijan “On investment activity” as of January 13, 1995 (http://e-qanun.az/framework/9367), Azerbaijani State provides guarantees for the stability of conditions of investment activity, as well as for the protection of rights and legitimate interests of its subjects, of all investments, including foreign investments, regardless of the form of ownership. In the event that the subsequent legislation of the Republic of Azerbaijan worsens the investment condition, the legislation in force at the time the investment was made shall be applied for the duration of period envisaged in the concluded contract.

Investments are neither nationalized, nor requisitioned without indemnity and no other measures of similar outcome are applied to them in the territory of the Republic of Azerbaijan. Such actions can be carried out only on the basis of legislative acts of the Republic of Azerbaijan, provided that investors have been fully indemnified for the losses and lost benefits incurred by them. The Republic of Azerbaijan has signed bilateral agreements on the promotion and mutual protection of investments with 47 countries.

As part of recent measures implemented towards improvement of business environment in the country, inspections in the field of entrepreneurship have been suspended for 2 (two) years from November 1, 2015, the number of licensed types of activity and permits have been reduced and the procedures required for their issuance have been relaxed, electronic customs services have been expanded, tax administration has been improved, requirements for entrepreneurs to connect to the electricity supply network have been simplified, as well as systematic reforms have been conducted with regards to investment and export promotion, support of local production, stimulation of production and processing of agricultural products, and further enhancement of state support to entrepreneurship.

 

Taxes applied in the Republic of Azerbaijan

 

According to the Tax Code of the Republic of Azerbaijan, the following taxes are applied in the Republic of Azerbaijan

 

–  State taxes;

–  Taxes of autonomous republic;

–  Local (municipal) taxes

 

State taxes are stipulated by the Tax Code and are payable on the entire territory of the Republic of Azerbaijan.

Taxes of autonomous republic are taxes stipulated by the laws of Nakhchivan Autonomous Republic in accordance with the Tax Code, and are payable in Nakhichevan Autonomous Republic.

Local (municipal) taxes are stipulated by the Tax Code and relevant law, applied through decisions of municipalities and payable on the territory of municipalities.

State taxes include:

1. Income tax of natural persons (personal income tax);
2. Profit tax of legal persons (corporate income tax) (with the exception of enterprises and organizations that are the property of municipalities);
3. Value added tax;
4. Excise tax;
5. Property tax of legal persons;
6. Land tax of legal persons and that of natural persons in respect of misused agricultural lands;
7. Road tax;
8. Mining tax;
9. Simplified tax.

State taxes are paid to the state budget of the Republic of Azerbaijan

 

Taxes of autonomous republic are the state taxes levied in Nakhchivan Autonomous Republic. The state taxes levied in Nakhchivan Autonomous Republic shall be paid to the budget of the Autonomous Republic

 

Local (municipal) taxes include:

 

1. Land tax of natural persons as stipulated in Articles 206.1-1 and 206.3 of the Tax Code;
2. Property tax of natural persons;
3. Mining tax on construction materials of local importance;
4. Corporate income tax of enterprises and organizations that are the property of municipalities

 

Local taxes are paid to the local (municipal) budget.

2 types of taxes levied in the Republic of Azerbaijan – VAT and excise are indirect taxes, whereas the remaining 7 are direct taxes.

 

Income tax of natural persons (personal income tax)

Resident and non-resident natural persons are payers of income tax. Income tax in respect of residents’ income is levied on income consisted of the difference between the gross income of the residents for the tax year and deductions for that period.

A non-resident taxpayer operating in the Republic of Azerbaijan through a permanent establishment should be a payer of personal income tax on taxable income related to permanent establishment, whereas non-resident taxpayer who does not have a permanent establishment is a payer of income tax on gross income, irrespective of the expenses.

Entrepreneurial activity conducted by non-resident natural person for the cumulative period of not less than 90 days within any 12-months period is deemed the activity conducted through permanent establishment.

Monthly income of natural persons, along with the income from employment, is taxed in accordance with the following table:

 

Amount of monthly taxable income	Amount of tax
Up to 2500 manats	14 percent
Over 2500 manats	350 manats + 25% of the amount exceeding 2500 manats

 

Individuals’ annual income from non-entrepreneurial activity is taxed in accordance with the following table:

 

Amount of annual taxable income	Amount of tax
Up to 30000 manats	14 percent
Over 30000 manats	4200 manats + 25% of the amount exceeding 30000 manats

 

Taxable income (difference between income and deductible expense) of individuals engaged in entrepreneurial activities without establishing a legal entity is taxed at a rate of 20 percent.

Gross income of a non-resident natural person which is not related to the permanent establishment is taxed at the rates specified in the Article 125 of the Tax Code.

Income of special notary, as well as earnings in the form of money from sports betting games, lotteries, and other contests and competitions, is taxed at a rate of 10 per cent.

Article 102 of the Tax Code envisages 45 tax privileges and exemptions in respect of income tax.

Reporting period for individuals engaged in entrepreneurial activity is the calendar year.

 

Profit tax of legal persons (corporate income tax)

Resident and non-resident enterprises in the Republic of Azerbaijan are the payers of corporate income tax.

Resident enterprise is taxed on its profit (difference between income and deductible expense)

A non-resident enterprise operating in the Republic of Azerbaijan through a permanent establishment pays its tax on profit related to permanent establishment, whereas non-resident enterprise who does not have a permanent establishment is a payer of corporate income tax on gross income (without deducting expenses).

An enterprise’s profit is taxed at a rate of 20 percent. Corporate income tax reporting period is the calendar year.

Gross income of a non-resident not related to permanent establishment, but obtained from Azerbaijani source (excluding VAT and excise) is taxed at the rates specified in Article 125 of the Tax Code.

Article 106 of the Tax Code envisages 18 tax privileges and exemptions in respect of corporate income tax.

 

Value added tax

Value Added Tax (VAT) is the difference between the amount of tax calculated from taxable turnover and the amount of tax that should be offset according to the electronic tax invoices issued in accordance with the provisions of the Tax Code or the documents proving the payment of VAT on import. During retail sale of agricultural products produced in the territory of the Republic of Azerbaijan, value added tax is calculated from the trade markup.

VAT payer is a person registered or liable to be registered as such.

Entities engaged in entrepreneurial activity, whose volume of taxable operations in any month (months) of consecutive 12-months period exceeds 200.000 manats, including entities with the same volume of taxable operations who are engaged in trading activities and (or) catering activity and who waives a right to become payer of simplified tax, shall submit an application for registration for VAT purposes. Where the total cost of the operation per one transaction or contract exceeds 200,000 manats, this operation is deemed VAT liable operation, and the person performing this operation must submit an application for VAT registration prior to the date of operation.

Persons importing goods liable to VAT into the Republic of Azerbaijan, producers of excised goods and persons engaged in construction of building, who waives the right to become payer of simplified tax, are considered to be VAT payers irrespective of the volume of taxable operations.

Non-resident person providing works or services without registering for VAT purposes, and who is taxable in accordance with Article 169 of the Tax Code, shall be deemed as VAT payer on those works or services.

Provision of goods, works, rendering of services, taxable import, as well as trade markup applied during retail sale of agricultural products produced in the territory of the Republic of Azerbaijan are subject to taxation for the purposes of VAT.

VAT is applied at the rates of 18% and 0%. The VAT reporting period is a calendar month.

The amount of VAT payable to the budget from the taxable turnover during the reporting period is defined as the difference between the amount of tax computed from taxable turnover and the amount of tax to be refunded.

Amount of refundable VAT is the amount of tax payable to VAT deposit account, and within transactions therein on cashless payments (excluding direct cash payments to the bank account of the supplier of goods, works and services) made according to electronic tax invoices issued to the taxpayer.

Import documentation confirming the payment of VAT on import issued by the customs authorities give grounds for tax refund irrespective of the form of payment.

Article 164 of the Tax Code stipulates 37 exemptions in respect of VAT, whereas Article 165 provides for zero rate taxation in 6 instances.

According to Article 165.1.3 of the Tax Code, export of goods and services listed in Article 168.1.5 is taxed at zero rate VAT.

 

Excise

Excise is levied on excise goods produced in or imported into the Republic of Azerbaijan.

All enterprises and natural persons engaged in the production or import of excise goods in the territory of the Republic of Azerbaijan are payers of excise tax.

Excise goods include:

–  Alcohol, beer and all types of alcoholic beverages;

–  Tobacco products;

–  Oil products;

–  Vehicles (excluding vehicles of special purpose, equipped with special markings and equipment);

–  Leisure and sports yachts as well as other floating facilities intended for these purposes;

–  Imported platinum, gold, jewellery and other household items made thereof, as well as processed, sorted, framed and fixed diamond.

–  Imported fur-leather products

Following excise rates are applied to alcohol, beer, alcoholic beverages and tobacco products produced in Azerbaijan:

alcohol  – 2.0 manats per liter; beer (with exception of non-alcoholic beer) – 0.2 manats per liter; vodka – 2.0 manats per liter; cognac – 6.0 manats per liter; wine – 0.1 manats per liter; champagne – 2.5 manats per liter; cigars- 10.0 manats for 1000 pcs.; cigarettes – 4,0 manats for 1000 pcs.

Vehicles, recreation or sports yachts and other floating facilities intended for these purposes being imported into the Republic of Azerbaijan, as well as imported platinum, gold, jewellery and other household items made thereof, along with processed, sorted, framed and fixed diamond and fur-leather products are imposed excise tax as stipulated in Article 190.4 of the Tax Code.

Excise rates applied to imported oil and tobacco products have been approved by Decree No. 17 dated 29.01.2015 of the Cabinet of Ministers of the Republic of Azerbaijan.

Excise rates applied to oil produced in Azerbaijan are approved by Decree No 35 dated 06.02.2014 of the Cabinet of Ministers of the Republic of Azerbaijan, whereas excise rates applied to passenger cars and recreation or sports yachts and other floating facilities intended for these purposes are approved by Decree No 85 dated 29.05.2007 of the Cabinet of Ministers of the Republic of Azerbaijan.

Following items are exempt from excise:

–  Import of three liters of alcoholic beverage, 600 pieces of cigarettes, 20 grams of gold, jewellery and other household items made thereof, and processed, sorted, framed and fixed 0.5 carat diamond by a natural person for the purposes of personal consumption;

–  fuel stored in technically authorized tank of vehicles travelling to the Republic of Azerbaijan;

–  goods shipped through the territory of the Republic of Azerbaijan by transit;

–  temporary import of goods into the territory of the Republic of Azerbaijan.

Article 188 of the Tax Code provides for 4 exemptions in respect of excise tax.

Export of excise goods is taxed at zero rate.

Reporting period for manufacturers of excise goods is calendar month.

 

Property tax

Enterprises with fixed assets in their balance, and individuals having premises (building), water and air transport facilities in their ownership, are payers of property tax.

Premises (building) located in the territory of the Republic of Azerbaijan, water and air transport facilities, which are in ownership of natural persons, regardless of their location and utilization status, as well as the average annual value of fixed assets of enterprises, is taxable for the purposes of property tax.

Property tax on buildings owned by individuals is calculated as per each square meter of property area and at rates as specified in Article 198.1.1 of the Tax Code, whereas water and air transport facilities with engine are taxed in the amount of 0.02 manats per 1 cub. sm. of engine. In respect of water and air transport facilities without engine tax is levied at a rate of 1% of their market price.

Property tax on enterprises’ fixed assets is calculated at 1% of the average annual residual value of fixed assets.

Property tax on property of natural persons is calculated by the municipality of the area where the property is located and paid to the local (municipal) budget.

Property tax, calculated by enterprises, is paid to the state budget.

Reporting period for property tax is the calendar year.

Article 199 of the Tax Code envisages 13 tax privileges and exemptions in respect of property tax.

 

Land tax

Natural persons and enterprises who own or use land in the territory of the Republic of Azerbaijan are payers of land tax.

Agricultural lands used upon designation or impossible to be used upon designation for irrigation, melioration and other agro-technical reasons, are taxed in the amount of 0.06 manats per 1 conventional point depending on geographical location and quality of the land (conventional points for the administrative districts of the republic were approved by Decree No. 230 of the Cabinet of Ministers of the Republic of Azerbaijan dated 29.12.2000).

Tax on agricultural lands not used upon designation is levied in the amount of 2 manats per each 100 sq.m, whereas lands of different purpose are taxed as per each 100 sq.m pursuant to Article 206.3 of the Tax Code, depending on the location of land and purpose of use thereof.

Land tax is calculated annually. Enterprises and natural persons as specified in Article 206.1 of the Tax Code, pay their land tax to the state budget, in other cases, natural persons shall pay their tax to the local (municipal) budget.

For enterprises reporting period of land tax is the calendar year.

Article 207 of the Tax Code envisages 8 tax privileges and exemptions in respect of land tax.

 

Road tax

Non-residents who are the owners of motor vehicles crossing into the territory of the Republic of Azerbaijan and used for the transportation of passengers and cargo from that territory, as well as those engaged in the production or import of automobile gasoline, diesel fuel and liquefied gas in the territory of the Republic of Azerbaijan, are the payers of road tax.

Road tax is levied on motor vehicles of foreign countries crossing into the territory of the Republic of Azerbaijan and liable for road tax upon leaving this territory, as well as on automobile gasoline, diesel fuel and liquefied gas produced and brought in the territory of the Republic of Azerbaijan and directed to domestic consumption (supplied at wholesale).

Road tax on motor vehicles of foreign countries is levied at rates specified in Article 211.1 of the Tax Code depending on the type of a car, number of axis, duration of stay in the country, and other factors.

Road tax is calculated in the amount of 0.02 manats per liter of automobile gasoline, diesel fuel and liquefied gas produced and further supplied monthly at wholesale for the purpose of domestic consumption and also brought into the country.

Reporting period for producers of automobile gasoline, diesel fuel and liquefied gas in the territory of the Republic of Azerbaijan is calendar month.
Mining tax

Natural persons and enterprises extracting minerals from subsurface strata of the earth on the territory of the Republic of Azerbaijan (including sector of Caspian Sea belonging to the Republic of Azerbaijan), are the payers of mining tax.

Mining tax is levied on minerals extracted from subsurface strata of the earth in the territory of the Republic of Azerbaijan (including sector of Caspian Sea belonging to the Republic of Azerbaijan).

Depending on the type of minerals extracted from subsurface strata of the earth, the rates of mining tax are defined in the Tax Code as follows:

–  26% of wholesale price of oil

–  20% of wholesale price of natural gas

–  3% of the wholesale price of ores

–  In respect of nonmetallic ores, at rates defined by Article 216.2 of the Tax Code depending on the type of minerals

Mining tax imposed on ceramide clays, mortar sand, and raw materials from crushed stone, classified as construction materials of local importance, is paid to the budget of municipality (local budget) at the territory of which they were extracted. Mining tax on other minerals is paid to the state budget.

Reporting period for mining tax is the calendar month.

 

Simplified tax

Following persons have the right to become payers of simplified tax:

– Persons who are not registered for VAT purposes and whose volume of taxable transactions in any month (months) during a consecutive period of 12 months does not exceed 200,000 manats. These persons are taxed on turnover obtained from provision of goods, implementation of works, rendering of services and non-sale profits over reporting quarter at a rate of 4% in Baku, and 2% in other cities and districts, including Nakhchivan Autonomous Republic.

–  Persons involved in trading and (or) public catering activities, whose volume of taxable transactions in any month (months) during a consecutive period of 12 months exceeds 200,000 manats. Persons involved in trading activity are taxed on obtained turnover and non-sale profits over reporting quarter at a rate of 6%, whereas persons engaged in public catering activity is taxed at a rate of 8%.

–  Persons involved in construction of buildings. These persons pay simplified tax in the amount of 45 manats per each sq.m. of the building under construction depending on the location of the building and taking into account coefficients applied pursuant to Article 220.8 of the Tax Code. The full tax amount is calculated in the quarter, when construction works have been started and is paid in equal installments within 10 quarters;

Following persons are considered payers of simplified tax:

–  Persons engaged in transportation of passengers and cargo (except for international cargo and passenger transportation) with vehicles owned or used by them. These persons pay simplified tax in the form of the monthly tax amount depending on the type of transport in accordance with Article 220.5 of the Tax Code, and taking into account coefficients applied pursuant to Article 220.6 of the Tax Code depending on the location of activity. Tax is paid without submitting tax return via applying for and receiving “Distinction sign” authorizing activity within a month;

–  Sports betting operators and suppliers. Sports betting operators are taxed on money obtained quarterly from betting participants at a rate of 6%, whereas sports betting suppliers are taxed on commission fee received quarterly from operator at a rate of 4%.

–  persons supplying their own residential and non-residential premises. When supplying residential and non-residential premises, tax is calculated in the amount of 15 manats per each sq.m. of real estate taking into account coefficients applied pursuant to Article 220.8 of the Tax Code, whereupon the calculated tax is withheld by notaries and paid to the state budget.

–  persons supplying their own plots of land. When supplying a plot of land, simplified tax on agricultural lands is calculated in the amount of 2 times the volume of land tax computed on lands used upon designation or impossible to be used upon designation, in respect of other lands in the amount of 0.5 manats per sq.m. taking into account coefficients applied pursuant to Article 220.8 of the Tax Code, whereupon the calculated tax is withheld by notaries and paid to the state budget.

–  Natural persons engaged in activities provided for in Article 220.10 of the Tax Code individually (not hiring a worker). These persons calculate monthly flat tax taking into account coefficients as per type of activity and location thereof, whereupon pay it to the state budget on a monthly basis. Once the tax is paid, an appropriate receipt authorizing the activity is issued and no tax return is required to be filed.

Legal and natural persons who are the payers of simplified tax are immune from paying income (profit) tax and value added tax.

Article 218 of the Tax Code envisages 4 tax exemptions in respect of simplified tax.

 

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