PwC expects improvement of Azerbaijan's position in Paying Taxes ranking
Azerbaijan, Baku, Feb. 10 / Trend A. Akhundov /
International audit firm PricewaterhouseCoopers (PwC) expects improvement of the position of Azerbaijan in the Paying Taxes ranking.
This was stated by managing partner of PwC Azerbaijan company, Movlan Pashayev during his speech at the forum on "Tax system in Azerbaijan: realities and prospects".
Paying Taxes is prepared and used in preparation of the annual Doing Business ranking of the World Bank (WB) and International Finance Corporation (IFC). The latest Doing Business-2013 report was published in October last year.
According to Pashayev, since 2009, Azerbaijan is continuously improving its position in the ranking of Paying Taxes. In Paying Taxes-2013, prepared according to the data of 2011, Azerbaijan was the 76th.
According to the latest report, the overall tax rate in Azerbaijan is at 40 percent, while the average for the countries of Central Asia and Eastern Europe is at 41.3 percent, and the global average rate - 44.7 percent.
"Most of the tax burden in Azerbaijan accounts for social security contributions. Of these 40 percent, 24.8 percent are social contributions, 12.9 percent - income tax, 2.3 percent - other taxes, while in the world, this layout is as follows: 16.2 percent - social contributions, 16.4 percent - income tax, 12.1 percent - other taxes," Pashayev said.
According to him, Azerbaijan has also reduced the time spent on preparation of tax reports. According to the report, that process requires, on average, 214 hours, of which 154 hours - to prepare the report, 45 hours - to make it available and 15 hours - to pay for it.