Azerbaijan to reduce taxes for small, medium-sized businesses (UPDATE)
Details added (first version posted on 11:42)
Baku, Azerbaijan, Aug. 10
By Anvar Mammadov – Trend:
Income tax and value added tax (VAT) rates for small and medium-sized enterprises engaged in production will be reduced in Azerbaijan, the country’s Deputy Taxes Minister Ilkin Valiyev said.
He made the remarks at a press conference dedicated to execution of the Azerbaijani president’s order, dated Aug. 4, 2016, “On improvement of tax administration and approval of directions of reforms in taxation in 2016.”
Valiyev added that in this context, it is planned to amend Azerbaijan’s legislation and simplify tax administration.
“Moreover, one of our main goals is to reduce tax burden,” said the deputy minister. “Currently, it is 39.8 percent. This figure is less than in other countries of the Organization for Economic Cooperation and Development (OECD), but slightly higher than in the countries of the region. Thus, we plan to optimize and somehow reduce the tax burden.”
Currently, Azerbaijan applies a single VAT rate of 18 percent and the rate of the income tax is 20 percent.
Small businesses in the country are the ones that have up to 25 employees and an annual turnover of up to 200,000 Azerbaijani manats, while the medium-sized businesses are the enterprises with an annual turnover of 200,000-1.25 million manats and 25-125 employees.