Azerbaijan, Baku, Dec. 18 / Trend A.Akhundov /
Individuals' winnings from sports betting are to be exempted from income tax in Azerbaijan starting 2013. This is stated in the draft law on amendments and additions to the Tax Code of the country discussed on Tuesday at a meeting of the parliamentary committee on economic policy of the Azerbaijani parliament.
Organizers of reckless-sport games and their agents (sellers) in Azerbaijan were brought to taxation by decision № 245 of the Cabinet of Ministers from 29 December 2010, which changed the procedure for calculating the profit under difficulty in direct profit payments by the taxpayer.
Given the Tax Code limiting the income tax rate by 20 percent of income, when determining the gain as 30 percent of the revenues of participants enthusiastically sports games actual income tax rate is six percent of their income.
The size of the income tax charged from the agent is four per cent of its commission. These operators and agents are exempt from VAT.
The draft amendments to the tax law also propose to exempt the amount of pensions, allowances and other benefits granted to the former president and his family from the income tax.
It is also proposed to exempt income of individuals being residents of newly established Industrial and Technology Park and engaged in business (without creating a legal entity) from income tax (excluding income tax from the salary). These revenues must be received from the Park. Individuals are exempt from income tax for seven years from the date of registration in the Park.
