en
This tax rate is being reduced to 5%
This tax rate is being reduced to 5%
The draft Law “On Amendments to the Tax Code of the Republic of Azerbaijan” is currently being discussed in the Milli Majlis.
The State Tax Service under the Ministry of Economy is gradually presenting to the public the justification for these proposed changes.
According to the current provisions of the Tax Code, individuals who are residents of the Republic of Azerbaijan must declare and pay tax at a rate of 14% on non-entrepreneurial income earned from abroad. It is proposed that starting next year this tax rate be reduced from 14% to 5%.
On one hand, the amendment will encourage the voluntary declaration of income earned abroad; on the other hand, it will help expand the coverage of the tax base. In addition, it will create further incentives to stimulate the inflow of financial assets and investments located abroad, while the lower tax burden will make the repatriation of capital to the country economically more efficient.
The draft Law “On Amendments to the Tax Code of the Republic of Azerbaijan” is currently being discussed in the Milli Majlis.
The State Tax Service under the Ministry of Economy is gradually presenting to the public the justification for these proposed changes.
According to the current provisions of the Tax Code, individuals who are residents of the Republic of Azerbaijan must declare and pay tax at a rate of 14% on non-entrepreneurial income earned from abroad. It is proposed that starting next year this tax rate be reduced from 14% to 5%.
On one hand, the amendment will encourage the voluntary declaration of income earned abroad; on the other hand, it will help expand the coverage of the tax base. In addition, it will create further incentives to stimulate the inflow of financial assets and investments located abroad, while the lower tax burden will make the repatriation of capital to the country economically more efficient.