Azerbaijan, Baku, Dec. 17 / Trend , corr. I.Khalilova /"Azerbaijani Tax Ministry intends to continue implementation of reforms to improve the tax administration," Natig Amirov, the deputy Tax Minister, said at the meeting with Valeriy Fiker, the chief of the International Monitory Fund (IMF). Stimulating measures are also planned to take to extend cashless settlement in the next year.
According to the Deputy Minister, the introduction of changes in tax legislation is also expected in the budget in the next year, whose application will be possibly since 2010. In particular, it is planned to reduce rates of profit tax 2% and VAT - by 1%. As a result the rate of profit tax will be lowered to 20% and VAT - to 17%.
Proposals for introduction of changes in the Tax Code must be prepared and represented to the Parliament until May 15 in order to accept it in the first half-year. For the first time next year changes into the tax legislation will be accepted separately from the budget. This will facilitate the process of examination and asserting of budgetary forecasts, as well as will also allow taxpayers to become acquainted with the changes in the tax legislation
In accordance with the studies of the Tax Ministry, the optimal VAT rate is 14-15%.
Last changes on tax rates in Azerbaijan were produced in 2006, when rates were reduced on profit tax from 24% to 22%. The income tax sum, assessed at maximum rate of 35% since 2008 increased from AZN600 to AZN2,000.
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