Tax amnesty in Azerbaijan to drop banks’ debt by 8M manats (UPDATE)

Business Materials 29 December 2016 17:54 (UTC +04:00)

Details added, headline and text changed (first version posted on 13:13)

Baku, Azerbaijan, Dec. 29

By Anvar Mammadov – Trend:

Introduction of partial tax amnesty in Azerbaijan starting from 2017 will make it possible to write off about 8 million manats of the banking sector liabilities before the state budget, Head of the Main Department on Analysis and Control over Tax Risks of Taxes Ministry Natig Shirinov told reporters in Baku Dec. 29.

He said that as of Dec. 1, liabilities of Azerbaijan’s banking sector account for about 7 million manats.

“Of this amount, financial sanctions account for 4.8 million manats, and the interest charged for the late payment of taxes amounts to 2.19 million manats,” said Shirinov.

Currently, the Parliament of Azerbaijan is considering a draft law “On regulation of tax liabilities accumulated as of Jan. 1, 2017.”

In accordance with the draft law, two types of tax liabilities will be written off: all the interest accrued for non-payment of the debt and a part of the financial sanctions.

If 30 percent of the financial sanctions is paid in January 2017, the remaining 70 percent of sanctions will be written off. If 50 percent of tax penalties is paid in January-February 2017, the remaining 50 percent of the sanctions will be written off, and if 70 percent of the financial sanctions is paid in January-March 2017, the remaining 30 percent of the sanctions will be written off.