Draft law on amendments to Tax Code recommended to plenary meeting of Milli Majlis

Baku: A meeting of Econmic Policy Committee of Azerbaijani Parliament has been held today.

APA-Economics reports that the draft law on amendments to Tax Code of Azerbaijan has been discussed at the meeting.

Chairman of Economic Policy Committee Ziyad Samadzade said that application of Tax Code enables transfer of more funds year after year and this allows conduction of planned works.

First Deputy Minister of Taxes Natig Amirov informed abot the amendments to the Code. He noted that the most significant amendment is exemption of a part up to AZN 500 manat of annual interest incomes paid by local banks and Azerbaijan-based branches of foreign banks on individuals’ savings from the income tax.

“The part up to AZN 500 of annual income on personal savings is exempted from income tax. For instance, if a depositor has AZN 30,000 deposits in the bank, he/she will pay AZN 300 income tax per year. If a depositor wants to be exempted from income tax, he/she may place this fund in the six banks with annual income not exceeding AZN 500”, Amirov said.

MP Vahid Ahmadov offered to discuss abovementioned amendment after a year.

Deputy Chairman of the Committee Chingiz Asadullayev considers that the cancellatin of concessions are more acceptable. According to him, exemption of a part up to AZN 500 manat of annual interest of the savings will cause problems for banks: “If this amendment remains, the banks will have to refresh their software”.

At the end, the draft law has been recommended to the plenary meeting of the parliament.