BAKU, Azerbaijan, December 4. The tax rate on dividend revenues received by individuals from abroad in Azerbaijan may be reduced to 5%, Trend reports via the State Tax Service under the Ministry of Economy.
The draft law "On amendments to the Tax Code of Azerbaijan" is being discussed in the parliament. The primary aim of the amendments is to give a leg up to entrepreneurship, lighten the tax load, and strengthen the fight against the "shadow economy." The service is publicly presenting the justification for these amendments in parts.
According to the current provisions of the Tax Code, individuals who are residents of Azerbaijan must declare and pay non-entrepreneurial revenues received from abroad at a tax rate of 14%. It's proposed to reduce this tax rate from 14% to 5% from next year.
The amendment will encourage voluntary declaration of revenues from abroad and serve to expand the scope of the tax base. At the same time, additional incentives will be created to encourage the flow of funds and investments located abroad into the country, and a lower tax burden will make the return of capital to the country more economically efficient.
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