Azerbaijan sees sharp decline in tax revenues from legal entities
Nazrin Abdul
Read moreIn the first half of 2024, Azerbaijan experienced a significant drop in tax revenues contributed by legal entities to the state budget, Azernews reports.
During this period, companies and organizations collectively paid 3.8265 billion manats into the state budget. This marks a sharp decrease compared to the same period last year, when legal entities contributed 5.2408 billion manats in profit taxes—a decline of 1.4143 billion manats, or 27%.
Profit tax, which is levied at 20% according to Article 105 of the Azerbaijan Republic Tax Code, is calculated based on the difference between a company's total revenue and its expenses. The decrease in tax revenue may be attributed to various factors, including fluctuations in company profits due to economic conditions, accumulated losses, or other financial variables.
This substantial reduction in tax revenues underscores the challenges faced by Azerbaijani enterprises in 2024 and may have implications for the state budget and economic policy in the near future.
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