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Azerbaijan to tax interest income on deposits, account balance

Economy Materials 3 February 2023 17:21 (UTC +04:00)
Azerbaijan to tax interest income on deposits, account balance
Sadraddin Aghjayev
Sadraddin Aghjayev
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BAKU, Azerbaijan, February 3. Income accrued on the balance of funds on bank cards issued in Azerbaijan will be taxed at the rate of 10 percent, Trend reports referring to a source in the financial market.

According to the source, this percentage will be withheld by the bank and paid to Azerbaijan's State Tax Service.

"In general, any interest income, in particular on deposits, and account balance, will be taxed at the rate of 10 percent," the source added.

Earlier, the Central Bank of Azerbaijan noted that it does not expect a decrease in deposits due to profit taxation.

The State Tax Service adopted a law on the exemption of profits on deposits for seven years in 2016, but in February this period ended and the bank will continue to monitor the market in the present situation. Only the amount of profit will be taxed, and not the entire amount of the deposit.

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