Azerbaijan, Baku /corr. Trend I.Khalilova / The author of Doing Business report, Simeon Jankov, said on 8 October in Baku that possibly over the next 1.5-2 years, changes will take place in the rates of corporate tax (profit tax) which have been functioning at the level of 22% since 2006.
During reforms in simplifying the business conditions, the rates of the profit tax were decreased from 20% to 15% and the number of the taxes - from 13 to 4. Currently 9 tax kinds are active in Azerbaijan.
Jankov highlighted that over the recent years, dynamic reforms have been held in Azerbaijan to simplify the tax system and it is very important for the business.
"It played a significant role in improving Azerbaijan's ranking from 99 in 2006 to 96 in 2007. In addition, we expect progress in the tax administration, which is necessary for business and activity of the investors," Jankov said.
According to him, whilst devising the report, the WB and IFC experts analyzed the tax regime in the Country and gave recommendations to the Government. The investors were interested in the necessity of registration for all kinds of taxes. The author of the report said that together with the decrease of the tax rates in Azerbaijan, the process of payment and mechanism of presenting tax declaration were simplified.