Azerbaijani companies connected to US Tax Administration system increase

Business Materials 2 March 2015 12:46 (UTC +04:00)
The list of Azerbaijani companies, connected to the US’s Internal Revenue System (IRS), by which the tax authorities of Azerbaijan will provide information on the accounts of citizens of the United States, has enlarged

Baku, Azerbaijan, Mar. 2

By Azad Hasanli - Trend:

The list of Azerbaijani companies, connected to the US's Internal Revenue System (IRS), by which the tax authorities of Azerbaijan will provide information on the accounts of citizens of the United States, has enlarged, the IRS told Trend Mar.2.

Azerbaijani subsidiary of Turkish Ziraat Bank, Ziraat Bank Azerbaijan JSC, has been registered in the system.

In late 2014, the Central Bank of Azerbaijan (CBA) granted a license to the subsidiary of the Turkish Ziraat Bank to conduct banking activities in the country.

Ziraat Bank is one of the shareholders of Azer-Turk Bank OJSC. Currently, it owns a 12.37 percent stake in the bank, 1 percent is owned by Ziraat Bank Intenational AG, 75 percent - the State Committee for Property Affairs of Azerbaijan, 5 percent - the insurance company Gala Life, 6.55 percent - Reinsurance Company AzRe Reinsurance.

Ziraat Bank, operating since 1863, is the largest bank in Turkey. The volume of the bank's assets accounts for $108 billion. At present, the total volume of assets of the banking sector of Azerbaijan reaches about $30 billion.

Earlier, Azerbaijan and the IRS agreed on conclusion of the intergovernmental agreement for the implementation of the country's banks FATCA - the law on taxation of foreign accounts of US residents. Starting from July 2014, banks in all countries should connect to the IRS system and inform them about these accounts. Otherwise, their relationship will be sanctioned: tax from the payments in favor of the bank's any passive income from US assets in the amount of 30 percent of their volume. As of 2017, it will provide the same collection of revenue from the sale of securities and even transit payments.

The number of Azerbaijani banks registered in the system today reached 44 out of 45 operating in the country.

Naxcivanbank, Kauthar Bank, Bank Respublika, VTB Bank (Azerbaijan), AGBank, Bank BTB, Rabitabank, Bank of Azerbaijan, Unibank, YapiKredi Bank Azerbaijan, Bank Silk Way, AccessBank , Bank Standard, Ekspressbank, DekaBank, NBC Bank, AFB Bank, Azerbaijan Senaye Banki, as well as the Baku branch of Bank Melli Iran, International Bank of Azerbaijan (IBA), Bank Technique, Zaminbank, Bank Avrasiya, Azer Turk Bank, Muganbank, Caucasian Development Bank, Kapital Bank, Pasha Bank, Gunay Bank, DemirBank, Xalq Bank, Turan Bank, Nikoil Bank, AtaBank, Ganjabank, Bank of Baku, Azerbaijan Kredit Bankı, Parabank, United Credit Bank, Atrabank and Amrahbank, Kredobank, Euro Bank have already joined the IRS.

Furthermore, subsidiaries of Azerbaijani banks in Georgia - Caucasus Development Bank - Georgia joined the system in July. Two subsidiaries of Azerbaijani banks - International Bank of Azerbaijan - Georgia and PASHA Bank Georgia have been registered earlier.

Azerpoct Ltd., the national postal operator of Azerbaijan, the Baku office of the Baker Tilly British auditing and consulting company, Baku Interbank Currency Exchange, the National Depository Center, Pasha Life, Gala Life and Ateshgah Life insurance companies, as well as ADB Broker, Yapı Kredi Invest, Xalq Capital, UniCapital, BOB Broker, Texnika Capital Management, Pasha Capital, Chelsea Capital, Brokdil-AZ, Invest-AZ, Trust Asset Management, AzFinance Asset Management, International Transaction System, Standard Capital, Investaz Asset Management companies have also joined the system.

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