Baku, Azerbaijan, Dec.25
By Maksim Tsurkov - Trend:
It is planned to introduce a preferential system of taxation of profits of listed companies in Azerbaijan, the head of research and market development of the State Securities Committee (SSC) Nurlan Fatullayev said Dec.24 within the framework of the event "A look in the future."
"This will make it possible to stimulate the process of listing of securities in the country," said Fatullayev.
He went on to add that the SSC has prepared proposals for the creation of a favorable tax environment on the securities market of Azerbaijan. "The proposals have already been submitted to the ministry of taxes, and we expect that they will be considered in 2015," said Fatullayev.
He said that the proposals provide for options for the use or refusal of the approach of double taxation. "If the approach of double taxation is used, we propose to eliminate deduction of a 10 percent tax of the paid dividends from the source of payment, and also exclude the received dividends received from the taxable investor base. In case of non-use of double taxation approach, we propose not to use deduction of a 10 percent tax during dividend payment between the legal entities, the received dividends from the taxable base of the receiving party and apply deduction of a 10 percent tax from the source of payment on dividends received by an individual," explained Fatullayev.
He said that the State Committee offers a separate system of taxation of income and losses from the sale of securities. "We propose to use 10-15 percent tax on income from the sale of short-term securities and 5 percent tax on income from the sale of long-term securities," said Fatullayev. "At the same time, we propose to cover losses from the sale of securities in the next 5 years at the expense of the income from this activity."
It is also proposed to include the service of storing securities in the base of financial services and free securities from VAT (the tax rate is 18 percent in Azerbaijan).
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