Profit Tax Management

Calculation and accounting of Profit Tax is carried out in accordance with the Tax Code of the Republic of Azerbaijan. Profit tax is paid annually based on earned anuual profit. Profit tax amounts are kept on Profit Tax account of Chart of Accounts. It is important to have at least two accounts related to Profit Tax: Profit Tax on Current year Profit and Expenditure on Deferred Profit Tax.

Vendor setup and Tax Payments

You need to create vendor cards for profit tax in order to have separate vendor ledger entries and to make payments via payment journal selecting relevant vendor no.

The "Vendor type" field shall be set as "Tax authority" for such vendors. This will help while filtering by vendor type.

If GL account for profit tax type is set as separate account, then you need to create separate Vendor Posting Group including appropriate Payables GL account.

Tax payments are made via Payment Journal. Select Vendor No per profit tax on Payment Journal line, other related fields will be filled in automatically based on Vendor Posting Group setup.

Upon posting Payment Journal line, General Ledger Entries and General Ledger Correspondence entries are created.