Baku:Azerbaijan is proposing a change to its tax regulations that would allow taxpayers to voluntarily switch from the simplified tax system to the income (profit) tax system at any time during the calendar year, provided they submit an application as per the legal procedure.

According to Azeri-Press news agency, this proposed amendment to the Tax Code aims to address the current limitation where taxpayers can only switch tax regimes under specific circumstances outlined in Article 218.5 of the Tax Code. Presently, such a switch is mandatory under certain conditions, but many taxpayers are seeking the option to make this change voluntarily.

The existing tax framework restricts taxpayers' ability to choose the most beneficial tax regime based on their business strategies and economic interests. The proposed amendment emphasizes the principle of taxation voluntariness and the freedom of choice for taxpayers. By allowing taxpayers to switch tax regimes on their own initiative, the amendment seeks to align the tax policy more closely with taxpayer preferences and business needs.