Azerbaijan may abort taxation on deposit dividends
Baku, Azerbaijan, Jan. 19
By Azad Hasanli - Trend:
The dividends on bank deposits are offered for exemption from taxation in Azerbaijan from February 1, 2016, Elman Rustamov, the head of the Central Bank of Azerbaijan (CBA), said.
Rustamov made the statement as part of a meeting of the economic committee of the Azerbaijani parliament.
Starting from January 1, 2015, taxes are withheld from interest income accrued on bank deposits of individuals (10 percent). A part of the income up to 500 manats is exempt from taxation. At the same time, taxation takes place regarding interest on deposits accrued after January 1, 2015, and interest on income up to 500 manats per year is exempt from tax.
Since 2010, the income of individuals and legal entities on securities transactions is taxed at 10 percent.
"The total volume of deposits of the Azerbaijani population reaches 9.3 billion manat as of Jan. 19," Rustamov said. "The dividends on deposits reach 93 million manat."
In accordance with the draft amendments to the Tax Code of Azerbaijan, annual interest rates on deposits of individuals in local banks and branches of foreign banks operating in Azerbaijan, dividends on investment securities paid by the issuer, the interest income is exempt from taxation for a period of three years starting from February 1, 2016.