BAKU, Azerbaijan, August 19. Azerbaijan is gearing up to reel in cryptocurrency earnings and bring them under its tax umbrella, Trend reports via the State Tax Service under the Ministry of Economy.
Authorities indicated that entities engaging in the acquisition
and disposition of digital assets for profit must adhere to
regulatory compliance by securing a Taxpayer Identification Number
(TIN) and fulfilling their requisite reporting obligations to the
tax administration.
In accordance with Article 99.3.8 of the Tax Code, any revenue
stream outside of salary that reflects an appreciation in the
taxpayer's asset portfolio is classified as non-entrepreneurial
income upon declaration, as articulated in a statement by the
service. In accordance with Article 101.2, the aforementioned
revenue is liable to a tax imposition of 14 percent.
Tax agencies have reiterated to the populace the imperative of
submitting an income declaration by the statutory deadline of March
31 of the subsequent fiscal year, alongside the requisite
remittance of the corresponding tax into the state treasury.
In the realm of cryptocurrency, the taxable event is delineated as
the specific timestamp when the digital asset is transacted or
otherwise disposed of, with the capital gain computed as the
differential between the acquisition cost and the liquidation
value.
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