Exemption of Dividends on Bank Deposits from Taxes Extended for Five Years

The Azerbaijani government has proposed to extend by 5 years tax exemption for dividends on bank deposits of the population, the Minister of Taxes Fazil Mammadov. Speaking at a meeting of the Parliamentary Committee for Economic Policy, Enterprise and Industry, and the Committee on Legal Policy and State Building, Mammadov noted that these changes also apply to the income tax in the form of dividends, discounts and interest income on investment securities.

Recall that since March 1, 2016 the tax exemption of dividends on bank deposits for three years has been applied.

In addition, the government proposed to free banks from VAT payment on the transfer of distressed assets for three years.

He noted that this applies to banks with solvency problems - from the payment of VAT on the transfer of toxic and non-business assets as part of restructuring and improvement measures.

The Minister also said it is proposed for an indefinite period to free from income tax structures that provide compulsory health insurance and medical services. ---71D