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AmCham proposes amendments in Azerbaijanâ€™s Tax Code

28 April 2011 10:04 (UTC +04:00)

For example, issues on calculation of VAT, changing of income taxâ€™s rate and etcâ€.

To her, according to Chamberâ€™s proposals, it is offered to decrease income tax from individuals: â€œWe offer to decrease maximum rate of income tax to 20%, the incomes by AZN 500 to free from taxesâ€

Remind that, according to Tax Code, at present, maximum rate of income tax from individuals is 30% and this rate is applied to incomes which are more AZN 2000. At the same time, if monthly income of individual is AZN 200, part of this amount which equal to minimum wage is exempted from tax. Moreover, if monthly income is AZN 2000, 14% tax rate is applied to it.

Decrease of rates considered in the proposals will not reduce revenues of state budget: â€œWe believe that if most of population pays taxes, funds in the budget will increase tooâ€.

Though Nargiz Nasrullayeva-Muduroglu noted that she has not exact information on volume of amount evading tax, she said that Chamberâ€™s member-companies call current tax rate â€œvery highâ€.

Besides, chamber experts offer to make amendments in legislation related to social insurance system. These amendments have mainly technical character. For example, it is proposed to identify social insurance payments with calculation base of income tax. Because at present, though income tax is calculated in accordance with wages and premiums, this base in social payments is wider and more difficult.

Improvement of tax administration has also been reflected in the proposals. At present, the chamber is discussing both with Taxes and Finance Ministries.