Discussions over Amendments to be Made to Tax Legislation in 2009 Underway in Azerbaijan
Azerbaijan, Baku, 13 May/ corr. Trend I. Khalilova/ The Ministry of Finance and Ministry of Taxes of Azerbaijan will discuss changes and amendments to the Tax Legislation within the budget packet for 2009, the Ministry of Finance said on 13 May. The Azerbaijani government plans to submit the Bill to the parliament by 15 May so that it would be passed in the first half of the year.
The first amendments to the tax legislation will be adopted separately, not together with the public budget. It will facilitate the process of consideration and approval of budget forecast which will enable tax-payers to get familiar with the changes to the tax legislation in advance.
Apart from the improving tax legislation, the rates of income tax and valued added tax (VAT) are also expected to be considered in the future. The profit tax is expected to be decreased from the current 22% to 20%, VAT - from 18% to 17%.
According to study conducted by the Ministry of Taxes, the optimal VAT rate makes up 14-15% under current tax climate in the Azerbaijani economy.
The scale of the income tax is also expected to be made changes. At present, the highest rate of the income tax makes up AZN2,000 (35%) and the lowest rate - 14%. In 2009, the maximum volume of the income will be increased up to AZN2,500.
The last changes to the tax rates in Azerbaijan were made in 2006 with profit tax rates being decreased from 24% to 22% and income tax (35%) being increased from the previous AZN600 to AZN2,000 (from 2008).
The official exchange rate for 13 May is 0,8269 AZN/USD.
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