BAKU, Azerbaijan, January 1. New rules on taxation of bank deposits will come into force in Azerbaijan from January 1, Trend reports.
In order to reduce the tax burden of the population in Azerbaijan and to stimulate the long-term placement of savings, new changes have been made to the Tax Code on taxation of interest income on bank deposits depending on the amount.
For example, when a local bank and a branch of a foreign bank in the Republic of Azerbaijan place a deposit in the national currency for a period of 18 months or more in each bank (at a branch of a foreign bank in the Republic of Azerbaijan) of natural persons and pay the deposits. the deposit amount is no later than 18 months, the full part of the calculated interest income is exempted from tax for 3 years.
In addition, changes were made to the legislation regarding the exemption from income tax of individuals of up to 200 manats of the monthly interest income calculated on national currency deposits in each bank.
In other cases, banks are expected to tax interest income at source at the rate of 10 percent. This will apply to both local and foreign currency interest income.