BAKU, Azerbaijan, December 28. One of the important changes in the direction of reducing the tax burden on businesses and stimulating entrepreneurial activity is the reduction of the tax rate on dividends, Trend reports.
Thus, starting next year, the tax rate on dividend income will be reduced from 10 percent to 5 percent.
According to the State Tax Service under the Ministry of Economy of Azerbaijan, in accordance with the amendments to the Tax Code, the tax privilege for state and local governments, budgetary institutions, and legal entities established on behalf of the state on dividend income is canceled, and taxation at the rate of 5 percent is introduced.
"These amendments to the tax legislation regarding the taxation of dividend income are aimed at creating equal economic conditions for all participants, regardless of the form of ownership, and the goals are to prevent obstacles to attracting investment in Azerbaijan's favorable investment environment, to stimulate investment in shares on capital markets, the formation of a stable tax environment for investors who are not participants in capital markets, and the mandatory collection of tax on dividends by central executive authorities," the service noted.
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