Azerbaijan, Baku, May 21 / Trend I.Khalilova /
The Azerbaijani government has not yet agreed on a final version of amendments to the Tax Code for 2011, which was to be submitted to parliament before May 15.
"There are many proposals from different departments, but they have not yet been agreed upon due to certain conflicting proposals," Finance Minister Samir Sharifov said.
Sharifov said as a result the tax code may not be amended in 2011.
He said the package of amendments to the tax legislation do not foresee an increase in taxes. However, an open question remains the taxation of bookmaking activities.
The most optimal tax for bookmaking is taxing the source, but this option has not yet been discussed with other agencies, Sharifov said.
Recent amendments to tax rates in Azerbaijan were made in 2010. Since Jan. 1, interest rates on some direct taxes have reduced. The income tax rate was reduced from 22 percent to 20 percent, the maximum income tax for employees fell from 35 percent to 30 percent, and taxes for persons engaged in entrepreneurial activities dropped from 35 percent to 20 percent.
Changes were made to the simplified tax system. Before 2010 the tax under the simplified system was paid by individuals and legal entities whose quarterly turnover did not exceed 22,500 manat. From this year forward, legal entities with an annual turnover of up to 150,000 manat will be subject to a simplified taxation system.
Paid pre-school educational institutions were exempted from VAT in 2010.
About 46 amendments to the Tax Code have been made in 2010 - enhancing taxpayer rights and interests (19), improving tax administration (16), implementing tax controls (7) and establishing editorial changes (4).
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