Azerbaijan, Baku, 27 May / corr Trend I.Khalilova / The Azerbaijani Finance Ministry confirms the necessity for cutting the profit tax rate to establish more competitive tax environment as compared to other countries of the region, Azer Bayramov, the Deputy Finance Minister, said.
"Cut in tax rate to 20% is fully logical, because mainly such rate is applied in the South Caucasus. The Mediterranean countries also try to increase it up to this level," the deputy minister said.
At present the highest tax rate exists in Kazakhstan, comprising 30%, while the Government is designing changes to the tax legislation, which envisages essential cut in rate by from 20% to 24%. The tax rate in Turkmenistan is 20%.
"We intend to offer cut in profit tax rate to 20% at the beginning of 2008, so that to apply it in 2010," Bayramov said. The situation at the end of 2007 and 2008 will differ cardinally, therefore in this transition stage it is difficult to speak of changes and impacts on the public budget.
The last changes on this tax were realized in Azerbaijan in 2006 and the profit tax rate was decreased from 24% to the current 22%.
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