Creation of single centralized fund in oil and gas sector of Azerbaijan to increase efficiency of assets utilization
Azerbaijan, Baku, June 4 /Trend, I.Khalilova/
In order to simplify calculations and facilitate addressing the efficient use of assets, there are plans to exempt from taxation the assets, fixed assets, movable property and other assets to be transferred free of charge to the ownership of subsidiaries and related entities in Azerbaijan in accordance with the PSAs in the oil industry, export pipelines and other similar agreements, the chairman of the parliamentary committee on economic policy Ziyad Samadzade said on Thursday during the discussions of draft amendments to the Tax Code of Azerbaijan.
"For the successful solution of issues of concentration and efficient use of assets, the companies may transfer assets from one to another subsidiary without paying additional taxes, including VAT, Samadzade said. - This loss is minimized because the property remains in possession of owner of assets. "
He said the need to introduce tax privileges at this stage is associated with increased activities of SOCAR (State Oil Company of Azerbaijan) compared with 2001.
"Today the economy is rapidly developing, subsidiaries are created. And they do not have fixed assets for the solution of certain issues, said Samadzade. - Also today, the number of subsidiaries of SOCAR has increased to 22. If to provide all these enterprises with assets, it will be possible to improve the efficiency of their activities."
He said now the issue of creating a single centralized fund is being decided.