Xəbərlər
The Law on Changes to Civil, Tax, Housing and Custom Codes of the Republic of Azerbaijan
Legal Act: The Law of the Republic of Azerbaijan No. 1584-VQD on Changes to Civil, Tax, Housing and Custom Codes of the Republic of Azerbaijan (the Law)
Authority: Milli Majlis (Parliament)
Enactment date: 03 May 2019
Effective date: 26 May 2019
The Law includes an exemption to Article 91.4 of the Civil Code for LLCs which are micro and small entrepreneurship subjects from the obligation to engage an independent (external) auditor annually to confirm the correctness of their financial statements.
The criteria for the definition of micro and small entrepreneurship subjects is set by the Decision No. 556 of the Cabinet of Minister of the Republic of Azerbaijan dated 21 December 2018 as follows:
Microentrepreneur - the average number of employees - 1-10, annual turnover – less than 200 thousand manats;
Small entrepreneur - the average number of employees -11-50, annual turnover – between 200 thousand manats and 3 000 thousand manats.
* Before the Law became effective, liability for avoidance from the mandatory audit included an administrative fine of 300-600 AZN for officers of the LLC and of 1500 – 2500 AZN for the LLCs meeting the above mentions criteria.