Azerbaijan, Baku, Dec 21 /Trend N.Ismayilova/
The State Securities Committee of Azerbaijan has begun to prepare a more adaptive tax regime for financial institutions operating in the securities market, the chairman of SSC Rufat Aslanli told reporters on Tuesday.
"This work is being carried out as part of the framework of the state programme of the development of the securities market in 2011-2020, and has already reached an agreement to attract foreign technical assistance," Mr Aslanli said.
He added there are plans to develop a tax proposal for financial institutions, including investment funds and to initiate discussions with the government, particularly the tax authorities in 2012.
Technical assistance for the preparation of proposals will be provided as part of modernisation of capital markets (CMMP), funded jointly with the World Bank.
"The tender procedure was carried out to attract a consulting company and the first phase completed last week" said Aslanli.
The World Bank allocated a loan of $12 million to Azerbaijan to modernise its capital markets. Funding for the project will be carried out with help from the International Bank for Reconstruction and Development (IBRD is part of the WB).
The Swiss State Secretariat for Economic Affairs (SECO) will finance two components in the capital market development project by improving the legal framework and developing new financial incentive areas. The SECO approved the allocation of technical assistance to the sum of $1.6 million.
Special attention will be paid on improving the legislative base for the next stage, market infrastructure and the completion of the automation of securities trading into a single platform and measures will be taken to promote demand and supply in the market.