BAKU, Azerbaijan, December 16. One of the suggested tweaks to the Tax Code, aimed at greasing the wheels of investment and entrepreneurial spirit while lightening the load on businesses, is to roll out tax breaks for theaters, cinemas, museums, and symphony orchestras, Trend reports.
As per the information, the existing legislation stipulates that
75 percent of profits derived from the entrepreneurial activities
of cinematographic firms involved in film production and dubbing,
registered in the Republic of Azerbaijan, will be free from profit
tax for a duration of 3 years commencing January 1, 2024.
The data indicates that, pursuant to the proposed modifications,
the exemption percentage will rise from 75 to 90 percent, the
duration of validity will extend from 3 to 5 years, the number of
entities eligible for the exemption will increase from 2 to 6, and
individuals involved in theater, museum, symphony orchestra, and
film production will be included in the list of qualifying
entities.
“In addition, it is proposed to exempt 90 percent of the income of film producers and individuals engaged in film production and dubbing from income tax for a period of 5 years. Land tax exemption for a period of 5 years is also envisaged.
Meanwhile, it is proposed to exempt from withholding tax income from copyrights and licenses (royalties) at a rate of 14 percent for a period of 5 years for the use or granting of copyrights in intangible assets relating to the activities of a theater, museum, symphony orchestra, film production, broadcasting, and dubbing.
In addition, the proposed amendments provide for the refund to these persons of 50 percent of VAT paid by consumers who are individuals on a non-cash basis for services rendered in the field of theatrical performances, film screenings, museum visits, and symphony orchestra concerts. The purpose of providing tax benefits to the cultural sector is to develop this sphere, attract additional investment, and ensure transparency of activities in this area,” the information says.
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