Tax changes are on agenda
By Nigar Abbasova
Azerbaijan will introduce certain changes to the Tax Code in the short run.
Taxes Minister Fazil Mammadov spoke about the upcoming amendments while addressing a meeting of Azerbaijan’s parliamentary committee on economic affairs, industry and entrepreneurship.
He said the country will prolong the period of “Tax Holiday”, a temporary elimination of a tax, for bank deposits and dividends. The interest yield on bank deposits of the Azerbaijani population will be exempt from taxes until February 2021.
The minister further said that the changes envisage tax exemption for dividends paid by the issuing bank on investment securities, discounts and interest yields.
The interest yield on bank deposits and dividends have been exempt from taxes since February 1, 2016. Tax holiday was initially introduced for the period of 3 years. The tax rate of 10 percent was imposed before the introduction of the tax holiday. The interest yields worth less than 500 manats ($286.86) per year were exempt from taxes.
Mammadov also mentioned that enterprises rendering services on compulsory medical insurance will be except from income tax for open-ended term.
The minister further clarified that the bill on “Non-cash payment”, which has already been submitted for the consideration of the Parliament, envisages imposition of taxes worth 1 percent on legal persons and individual entrepreneurs for the conversion of means kept in bank accounts into cash.
The country also plans to exempt the sale of poultry, production and sale of flour and bread from value added tax (VAT) for the period of three years starting from January 1, 2017.
Moreover, the import and sale of wheat will also be exempt from VAT for three years. The products have already been exempt from VAT in Azerbaijan since January 2016, but the term of benefits will expire in late 2016.
The standard rate of VAT in Azerbaijan is 18 percent. VAT is levied on the supply of goods and services, and on the import of goods.
Moreover, singers, dancers, presenters and other representatives of show business performing at weddings and other celebrations will pay a simplified tax.
Representatives of the show business will pay a fixed price depending on the form of activity.
The minister also replied to proposals on creation of offshore zones in Azerbaijani, saying that the ministry is against this idea.
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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova
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