Last week’s laws, orders and decrees in Azerbaijan (Oct. 19-23)
Azerbaijani parliament adopts amendments to Tax Code
The Azerbaijani parliament adopted the draft amendments and additions to the Tax Code at the plenary session.
The changes include the expansion of the coverage of benefits for income tax, exemption of satellites and other spacecraft from paying the property tax.
Moreover, according to the amendments, the winnings of the participants of sports betting in Azerbaijan will be subject to income tax from 2016. The physical and legal entities, dealing with housing construction, will only pay the simplified tax. The new simplified tax rates will be introduced for the sphere of trade and public catering. The trade tax rates will be increased. The penalties for violation of the cash settlement procedures, etc. will be toughened.
The parliament also adopted the draft amendments to the Migration Code and the Code of Civil Procedure.
Azerbaijani parliament adopts 2016 state budget
The draft law on the state budget for 2016 was adopted by Azerbaijani parliament during the plenary meeting.
Addressing the parliament meeting, Azerbaijan's Finance Minister Samir Sharifov said that during the discussions on budget forecasts, it was proposed to allocate additional funds for resolving the problems of IDPs and refugees.
Thus, the expenditures for this purpose have been increased by 50 percent - 150 million Azerbaijani manats, said the minister.
Sharifov noted that the additional expenditures will be ensured with the transfers from the State Oil Fund of Azerbaijan.
Thus, the consolidated budget expenditures neared 19.957 billion manats, while the revenues of the consolidated budget for 2016 are forecasted to exceed 16.720 billion manats, said Sharifov.
The revenues of Azerbaijan's state budget for 2016 are forecasted to reach 14.566 billion manats, or 25.2 percent of GDP, while the expenditures - 16.264 billion manats (28.2 percent), according to the finance minister.
The deficit of the 2016 budget is forecasted to stand at 1,698 million manats, or 2.9 percent of GDP [its volume is set at 57.7 billion manats].
Budget indicators were formed taking into account the oil price of $50 per barrel and manat's rate of 1.05 AZN/$1.
The parliament session also approved the 'Law on the 2016 Budget of the State Social Protection Fund' and the amendments to the 'Law on State Duty'.
Azerbaijani parliament approves central bank's capital growth
The Azerbaijani parliament approved an increase in the authorized capital of the Central Bank of Azerbaijan (CBA) up to 500 million manat at a plenary session.
The appropriate changes were made to the law "On the Central Bank of Azerbaijan".
Currently, the authorized capital of the Central Bank is 10 million manat.
The capital of the Central Bank is formed by share capital and capital reserves.
The capital reserves must not be less than the CBA authorized capital. They are formed through the deductions of earnings as a result of the fiscal year.
Azerbaijan, US ratify agreement on Foreign Account Tax Compliance Act
The Azerbaijani parliament ratified an agreement on Foreign Account Tax Compliance Act, FATCA between the governments of Azerbaijan and the US at a plenary session.
The agreement signed September 9, 2015 defines the criteria. According to these criteria, the accounts of physical and legal entities can be inspected as part of the FATCA.
The Azerbaijani Ministry of Taxes and the US Department of the Treasury are the authorized bodies monitoring the implementation of the agreement.
Azerbaijan increases amount for duty-free goods imports
Azerbaijan's President Ilham Aliyev signed a decree under which individuals may, without paying customs duties, bring in the country up to $10,000 worth goods that aren't intended for industrial or commercial use.
The decree also stipulates that $2,000 is to be added to this amount for each person under 18, who is being accompanied.
Previously, the amount was $1,500 and $500, respectively.
Excise goods, vehicles and objects meant to meet the necessary needs during trips are exceptions here, according to the 'Decree on simplification of certain checks with regard to implementation of customs control'.