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Are royalty payments made for the use of copyright subject to taxation?
Are royalty payments made for the use of copyright subject to taxation?
Authors of works staged at the Young Spectators' Theater are paid royalties for the use of their copyright. In this case, should taxes be deducted from the royalty payments?
According to the State Tax Service under the Ministry of Economy, starting from January 1, 2025, under Article 102.1.42 added to the Tax Code, royalties received for the use of copyright on intangible assets related to theater, museum activities, symphonic orchestras, as well as film production, distribution, and dubbing in the Republic of Azerbaijan will be exempt from income tax for a period of five years starting from January 1, 2025.
Therefore, royalties paid to authors for the use of their works in theater are not subject to tax for five years starting from the beginning of this year.
Authors of works staged at the Young Spectators' Theater are paid royalties for the use of their copyright. In this case, should taxes be deducted from the royalty payments?
According to the State Tax Service under the Ministry of Economy, starting from January 1, 2025, under Article 102.1.42 added to the Tax Code, royalties received for the use of copyright on intangible assets related to theater, museum activities, symphonic orchestras, as well as film production, distribution, and dubbing in the Republic of Azerbaijan will be exempt from income tax for a period of five years starting from January 1, 2025.
Therefore, royalties paid to authors for the use of their works in theater are not subject to tax for five years starting from the beginning of this year.