Income on Deposits of More than 5000 Manat to Be Taxed

On 29 December, the Committee on Economic Policy of the Milli Majlis considered amendments to the Tax Code of Azerbaijan, providing for the abolition of the zero income tax on individual deposits.

The bill was presented to the parliamentarians by the Deputy Minister of Taxes Natig Amirov. He said that the amendments provide for the application of income tax to incomes on deposits that exceed 5000 manat per year. Incomes for smaller amounts will not be taxed.

At the same time, citizens have the opportunity to open an account in any of the local 43 banks. If in each of these banks a deposit amount does not exceed 5,000 manat, income tax will not be paid, the representative of the Ministry of Taxes said.

Income tax on individuals' deposits is 10%. It is expected that the state budget will receive about 60 million AZN from this.

At the beginning of December, deposits of individuals in Azerbaijani banks exceeded 7 billion AZN. ----08D