Azerbaijan, Baku, Feb. 9 / Trend N.Ismayilova /
Income tax rate in Azerbaijan may be revised since it, according to held calculations, doesn't affect significantly revenues of the state budget, Minister of Taxes Fazil Mammadov said on Thursday during his speech at forum entitled "Tax system of Azerbaijan: realities and prospects".
At present, the income tax rate in the country is 14 per cent with the monthly income of 2,000 manat, while the upper limit of the tax rate reaches 30 percent.
"We may revise the income tax rate, as it doesn't affect significantly the budget revenues, but we must adhere to the principle of social justice," the Minister said.
Mr Mammadov said the average monthly income at the level of 2,000 manat is a stable indicator, so the rate of 14 per cent is considered an acceptable level.
In general, the income tax rate may be one or two levels below or above to ensure social equality. As for the upper limit of income tax at 30 per cent, there are negotiations with the Ministry of Finance on this issue.
Discussion of a new edition of the Tax Code has been held recently with the government agencies, including representatives of the Ministries of Finance and Economic Development, Parliament and civil society organizations.
"We believe new edition of the Tax Code will be a document suiting all parties," Mr Mammadov said.
Today in Azerbaijan, a monthly income of an individual is taxed at 14 per cent rate if the amount of the monthly taxable income does not exceed 2,000 manat, and if income exceeds 2000 AZN the individual should pay 280 manat plus 30 percent of the amount over 2,000 manat.
From the January 1, 2010 the maximum income tax for wage earners declined from 35 percent to 30 percent, and for individuals engaged in entrepreneurial activities without establishing a legal entity - from 35 percent to 20 percent.
The official exchange rate is 0.7863 AZN to $1 on Feb.9