Foreigners exempt from paying 20%-fee for money transfers from Azerbaijan

Baku, Azerbaijan, Jan. 23

By Azad Hasanli - Trend:

Mandatory fee of 20 percent on remittances from money transactions from Azerbaijan to abroad, which do not exceed $50,000 a year, do not apply to foreign citizens, Samir Sharifov, Minister of Finance said.

"For instance, if a foreigner invests $10 million in Azerbaijan and increases this investment to $15 million within several years, he earn an additional $5 million," Sharifov said, adding that the mentioned $5 million is subjected to all the necessary taxes.

The minister added that however, the foreigners will not be paying any fee for the transfer abroad, just the 10%-revenue tax.

A mandatory fee of 20 percent on remittances for sending money abroad, which exceeds $50,000 during a year, was introduced in Azerbaijan, according to the amendments to the Law on currency regulation adopted by the parliament.

This charge does not apply to transfers abroad in relation to the cost of medical treatment, education, execution of court decisions and law enforcement agencies outside of Azerbaijan.

Currency exported as direct investment for the purchase of securities, real estate and land, as well as for the maintenance of Azerbaijani companies' foreign missions also will be taxed with a mandatory fee of 20 percent.

This charge does not apply to legal entities, the state share in capital of which exceeds 50 percent.