Pursuant to Paragraph 8 of Article 119 of the Constitution of the Republic of Azerbaijan and for the purpose of optimizing the refund process of overpaid taxes, mandatory state social insurance, unemployment insurance, and compulsory health insurance payments, as well as addressing the issues and inconsistencies arising in this field, the Cabinet of Ministers of the Republic of Azerbaijan has issued the following decision:
The following rules under the “Rules for the Refund of Overpaid Taxes, Mandatory State Social Insurance, Unemployment Insurance, and Compulsory Health Insurance Payments, Interests, and Financial Sanctions” have been annulled:
4.2.2. Tax authorities redirect budget overpayments related to unemployment insurance payments towards debts for accrued interests, administrative fines, and financial sanctions due to violations of unemployment insurance legislation.
4.3.2. Budget overpayments are directed towards debts for mandatory state social insurance payments, accrued interests, administrative fines, and financial sanctions due to violations of mandatory state social insurance legislation.
4.4-1. Overpayments related to compulsory health insurance fees cannot be offset against tax debts, mandatory state social insurance, or unemployment insurance debts, and vice versa.
Additionally, Clause 4.4 shall be restated as follows:
“4.4. Overpayments related to taxes, interests, and financial sanctions (FS) cannot be offset against debts related to mandatory state social insurance (MSSI), unemployment insurance (UI), and social insurance compulsory(SIC) payments, interests, financial sanctions, and administrative fines (AF). Similarly, overpayments related to mandatory state social insurance, unemployment insurance, and social insurance compulsory payments, interests, and financial sanctions cannot be offset against debts for taxes, interests, financial sanctions, and administrative fines. Overpayments related to mandatory state social insurance payments, interests, and financial sanctions cannot be offset against debts for unemployment insurance and social insurance compulsory payments, interests, financial sanctions, and administrative fines. Likewise, overpayments related to unemployment insurance and social insurance compulsory payments, interests, and financial sanctions cannot be offset against debts related to mandatory state social insurance payments, interests, financial sanctions, and administrative fines.”
This change can be summarized in the following six points as outlined in the table:
|
№
|
Category of Overpayments
(According to these categories…)
|
Category of Non-offsettable Debts
(….non-offsettable category.)
|
|
1
|
Taxes, Interests, FS
|
MSSI, UI, SIC, Interests, FS, AF
|
|
2
|
MSSI, UI, SIC, Interests, FS
|
Taxes, Interests, FS, AF
|
|
3
|
MSSI, Interests, FS
|
UI, SIC, Interests, FS, and AF
|
|
4
|
UI, SIC, Interests, FS
|
MSSI, Interests, FS, AF
|
|
5
|
UI, Interests, FS
|
SIC, Interests, FS, AF
|
|
6
|
SIC, Interests, FS
|
UI, Interests, FS, AF
|
For example, as seen in the table, overpayments related to the “Taxes, Interests, FS” category cannot be offset against debts in the “MSSI, UI, SIC, Interests, FS, AF” category.
Abbreviations:
– Mandatory State Social Insurance – MSSI
– Unemployment Insurance – UI
– Social Insurance Compulsory – SIC
– Financial Sanctions – FS (related to the mentioned category)
– Administrative Fines – AF
– Interests – Related to the mentioned category
Reference:
https://e-qanun.az/framework/2658
https://e-qanun.az/framework/57862
