Azerbaijani ministry assesses use of tax benefits by entrepreneurs

Business Materials 29 July 2010 13:56 (UTC +04:00)

Azerbaijan, Baku, July 29 / Trend I. Khalilova /

The Azerbaijani Ministry of Taxes has begun to assess the situation with the use of tax incentives for entrepreneurship, Deputy Minister of Taxes Natiq Amirov.

"There is inefficient use of tax benefits by entrepreneurs. We aim at ensuring transparency, correct calculation by reducing income tax rates. However, we have not achieved the desired result.

In particular, measures conducted by the Ministry of Taxes in 2010 to legalize wages revealed the facts of the labor force without registration, issuance of informal wages.

"We will continue our activities to remove such facts, as it is wrong, for example, when wages in private medical institutions are identical to the amount of wages in the state ones, as they differ in the quality of services", Amirov said.

The maximal amount of income tax for employees decreased from 35 percent to 30 percent from 2010, and for physical entities dealing with entrepreneurship, without establishing a legal entity - from 35 percent to 20 percent.