Tax Privileges for Financial Sector Adopted in Azerbaijan

Business Materials 28 October 2008 22:08 (UTC +04:00)

Azerbaijan, Baku, 28 October /corr. Trend I.Khalilova / On 28 October, the Parliament of Azerbaijan adopted tax privileges for the financial sector. According to law, banks, insurance and re-insurance companies will be given the privileges on the profit tax for the growth of capitalization until 2012.

The project of Law on stimulation of increase in capitalization of banks, insurance and re-insurance companies was developed by the National Bank of Azerbaijan and Ministry of Finance.

The document envisages exempt the profit, directed for the capitalization, from the tax payment. Tax privileges will come to force starting from 1 January 2009 and will be active for three years.

According to the Chairman of Permanent Parliamentary Commission for Economic Policy, Ziyad Samedzade, assignment of privileges is directed toward the development of financial sector, increase and improvement in the quality of bank and insurance services, strengthening the solvency of banks, insurance and re-insurance companies and an increase in their capitalization.

"In spite of the global crisis, money and credit system and as a whole the financial system of Azerbaijan is steady. The adoption of privileges will contribute to the effort of bank and insurance sector," said Samedzade.

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