History of tax

Verginin tarixi, History of tax Net Finance

Azerbaijan’s foreign trade relations date back to ancient times. In the second half of the second millennium BC, local tribes traded raw materials and products with the countries of Assyria, Palestine, and Egypt, from which they brought ornaments and various cold steel. Tabriz, Ardabil, Urmia, Maragha, Zanjan, Nakhchivan and other areas in the territory of Atropatena have become important trade centers within the country. These cities were able to establish trade relations with other countries not only by land but also by sea. Trade relations with Central Asia, China, India and Asia Minor were established through the famous “Great Silk Road”.
Carpets, ornaments, woolen products, etc. made in the country. exported and instead imported the necessary consumer goods. At that time, various taxes were levied on sales, which in modern times are called customs duties and taxes.
At the beginning of our era, the state of Albania was established, covering the territory of present-day Northern Azerbaijan and Southern Dagestan. According to historical sources, oil, natural gas, iron, copper, etc. are found in this area. It is shown that there were valuable resources such as, which later became commercial entities. In Shirvan (Baku) oil and salt products are taxed, which in modern language is assessed as a mining tax and excise tax.

Customs in Baku was first established in 1809 by the decree of the Senate of the Russian Empire dated January 25, 1807 and was included in the Astrakhan customs district.
After the Gulustan (1813) and Turkmenchay (1828) treaties, Russia’s customs decisions came into force in Azerbaijan. At that time, the customs tariffs adopted in 1811 and the customs regulations adopted in 1819 were in force in Russia.

According to the “Regulations on customs administration in the Transcaucasian country”, Baku customs was transferred to the subordination of the Transcaucasian customs district on July 31, 1831, and from 1832 it was called “Baku warehouse customs”. Although no concrete work was done in this area during the time of the Azerbaijan Democratic Republic (1918-1920), all political steps were taken in terms of statehood. The whole tax policy was headed by the Minister of Finance N. Yusifbeyli.
After the resignation of F. Khoyski’s government in March 1919, N. Yusifbeyli became the Prime Minister (April 14, 1919). Addressing the parliament with a new government program, Nasib Bey stressed the establishment of the first economic relations with neighboring countries, among other areas. However, the April Revolution of 1920 should allow this policy to be completed.
On October 18, 1991, “Azerbaijan gained its independence and the Constitutional Act on Independence was adopted.
On January 30, 1992, the Customs Committee was established by the Decree of the President of the Republic of Azerbaijan No. 561 “On the establishment of the State Customs Committee of the Republic of Azerbaijan”. The committee was established mainly on the basis of the former Customs Administration of the Republic of Azerbaijan.

Benefits of Customs: The country’s industry is protected. The fact that goods produced abroad at lower prices will enter the country at lower prices will have a negative impact on local industry. When local industry cannot sell goods to the domestic market, jobs are lost and workers are laid off. In this case, unemployment is rising in the country. Therefore, when cheap goods or services come from foreign countries to the domestic market, a certain customs duty is levied and the domestic market is protected. A company that sends goods and services from abroad raises the price of goods and services to avoid paying customs duties. The domestic market is protected.

• Customs duties are a source of income for the country.
• Countries aim to control imported goods with the customs duties they impose on goods and services. In addition to lowering customs duties to speed up the entry of goods and services required for the country, they increase customs duties on goods and services they want to make difficult to enter.

 

The bicycle is the slow death of the planet

Velisoped Planetin yavaş-yavaş ölümüdür

General Director of Euro Exim Bank Ltd. got economists thinking when he said:

“A cyclist is a disaster for the country’s economy: he does not buy cars and does not borrow money to buy. He does not pay for insurance policies. He does not buy fuel, does not pay for the necessary maintenance and repairs. He does not use paid parking. He does not cause serious accidents. He does not require multi-lane highways. He does not get fat.
Healthy people are neither needed nor useful for the economy. They don’t buy medicine. They do not go to hospitals or doctors. Nothing is added to the country’s GDP (gross domestic product).
On the contrary, every new McDonald’s restaurant creates at least 30 jobs: 10 cardiologists, 10 dentists, 10 dietary experts and nutritionists, and obviously, people who work at the restaurant itself.”

Choose carefully: cyclist or McDonald’s? It is worth considering.

P.S. Walking is even worse. Pedestrians don’t even buy bicycles.

7 Benefits of Outsourcing Accounting and Bookkeeping Services

outsourcing-accounting-netfinance

Many small businesses, start-ups, and entrepreneurs find it challenging to hire an accountant. Especially with the right skills to prepare their company’s financial statements, manage bank account operations, analyze financial data, and prepare the outgoing invoices.Nowadays, it is even more challenging to find a qualified and eligible person at an affordable rate.Even though it is commonly believed that accounting and bookkeeping must be done inside of the business. But it is essential to ask yourself whether you have the necessary skills and experience to do this job. Also, do your staff has enough experience to coup with increasing accounting tasks. To add it up, 62% of all small businesses think that they overpay their taxes.we want to share the top 7 benefits, which our clients in Denmark, Norway, Sweden, and Switzerland, have already experienced after they decided to outsource bookkeeping and accounting.

1. Cost-Saving Accounting Services

In general, most businesses consider outsourcing to be additional, and therefore the unnecessary cost for their business. It is not the right perception at all. In fact, it is the opposite.

Our clients who are outsourcing accounting is willing to reduce their expenses but most importantly, without reducing the quality.

The savings that outsourcing usually provides can be quite considerable as most companies can offer their services at lower cost rates (typically due to lower labour costs at their location).

Besides, by outsourcing, you save money on paying the salaries, taxes, office supplies and benefits for the full-time or part-time employee. You only pay for what you need. There is no loss in productivity costs that come along with hiring full-time employees.

2. Eliminate Time and Costs of Hiring Processes

If you will look at the picture, the recruitment process is a rigorous job. It takes resources to manage it, from creating a recruitment strategy to selecting applicants to interview them. The recruitment process takes your business time, it costs, and you will need to dedicate the time either for yourself or the employee.

3. Saving your Time

As your business grows, you will find yourself spending more time managing your money and less time scaling the business. Therefore, outsourcing administrative tasks like bookkeeping and accounting help you to focus your time, energy and resources on creating business strategies. It will be bringing more revenue, as well as networking and building relationships with your customers.

4. Expert Accountants and Bookkeepers

Outsourcing may offer you the possibility to hire a professional with a higher level of expertise at an affordable price.

Outsourced bookkeeping and accounting service firms continuously have to improve their skills and qualifications to stay competitive in the market. Imagine, 50 people working in the same office. They can easily share the new accounting trends, solutions and tools. To add more, great accounting companies have more extensive access to training, courses, and they are participating continually.

Moreover, outsourcing to an accounting firm is giving you access to the team of Accountants. For example, at Baltic Assist, for the fixed price company gets a team of accountants. Not merely one person to deal with different kinds of tasks.

By choosing the outsourcing company wisely, you can be sure that your accounting is in the reliable and knowledgeable company’s hands.

5. Scaling Accounting Easily

The accounting service providers has the amount of availability to scale your services significantly without any lag. For example, if your bookkeeping and accounting tasks exceed the number of functions for 1 employee, you can easily be enforced with the extra workforce. Without the need to go through a rigorous recruitment process.

6. Automation technologies

Most businesses use accounting automation software to save time. It will save time, but importantly, it reduces risks. Automating accounting is minimizing human errors. Secondly, in automation software, accountants get real-time reports. They assist in catching potential problems and resolving them at an early stage. Thirdly, it will reduce the probability of internal fraud.

Most of the accounting service providers are highly qualified in the automation tools such as Quickbooks, Sage, Visma, Xero, Microsoft Dynamics, SAP and more.

If your accountants are still using only Excel sheets – you are wasting your time and money.

7. An accountant is your advisor

A good accountant will always provide advice on how to make accounting more efficient. Sometimes he might work with a couple of companies and propose an excellent experience from another client. Whether it is about taxation, accounting software or even providing financial advice.