Tax Income Exemption Will Raise Bank and Insurance Market Efficiency: Parliamentary Commission Head
Azerbaijan, Baku, 30 October / Trend , corr. U.Ismayilova /The income tax exemption, which is directed to capitalize insurance and re-insurance companies, will enable to raise the efficiency of the banking system and insurance market, Ziyad Samadzade, the Head of the Permanent Parliamentary Commission on Economy Policy, said.
"Anytaxremission gives positive results at the early stage," Samadzade said.
Exemption of Azerbaijani banks, insurance and re-insurance companies from income tax for three years term is envisaged in the Bill to promote and stimulate capitals in banks, insurance and re-insurance companies. The Parliament accepted the Bill on 28 October. The bill's goal is to accelerate development of financial sphere, raise the quality of services in bank and insurance spheres and stimulate capitalization of companies.
"Now the banking system in Azerbaijan experiences the forming phase and has become stronger compared to the previous year," Samadzade said.
Under the schedule approved by the Finance Ministry, the rate of the authorized capital of insurance companies should be reached to AZN 1mln and AZN 2mnl for re-insurance companies to 1 January 2009. The minimum sum of authorized capital in banks should make up AZN10mln.
The income tax is 22% in the country. There are 45 banks, 28 insurance and one re-insurance company.
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