Reduction of maximum income tax rate possible in Azerbaijan
Azerbaijan, Baku, April 18 / Trend A.Akhundov /
Azerbaijan may change the maximum tax income rate, the head of the department of individual registration of the Ministry of Taxes, Natig Shirinov, told reporters on Wednesday.
"We submitted draft amendments of the Tax Code to the government, as part of the consideration to reduce the maximum income tax rate of 30 per cent and raising the maximum monthly taxable income bracket of 2000 manat now being discussed," said Shirinov.
Today in Azerbaijan, a monthly income of an individual is taxed at 14 per cent which, according to Shirinov, is a normal level.
Tax rates under the simplified system are suitable today, so there is no need to change, the ministry's representative said. For Baku a simplified tax rate is four per cent and for the regions, two per cent.
According Azerbaijani legislation, simplified tax is paid by individuals with an annual turnover not exceeding 90,000 manat, and the threshold of simplified tax for legal entities is 150,000 manat per year.
Amendments to the tax code will come into effect from January 1, 2013.
The official exchange rate is 0.786 AZN to $1 on April 18.