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Deloitte&Touche drafts proposals on application of tax credits in Azerbaijan

11 February 2011 12:22 (UTC +04:00)

According to Nuran Karimov Partner/Head of the office, itâ€™s important to realize the stimulating measures in tax sphere for development of non-oil sector in Azerbaijan.

According to him, exemption of imported industrial equipments from VAT and application of quick faster depreciation rates are advisable.

Besides, there are proposals on income taxes, as well. Thus, According to him, one of the highest rates of income taxes among the CIS countries is in Azerbaijan. Itâ€™s important to make changes in existing legislation: â€œAccording to practices of Russia, Ukraine and Kazakhstan, application of low tax rates finishes with increase of incomes, and legalization of inaccurate wages. At the same time, we consider that, the tax credits for individuals received mortgage loan can cause the improvement of banking system and real estateâ€.

Besides, he put forward a proposal on Board of Appeals in Ministry of Taxes. Audit company considers that, enter of norms regulating the legal status of Board of Appeal to the Tax Legislation will support the improvement of tax appeal system.