Bank Of Baku

Azerbaijan frees banks and insurers from taxation of profit for capitalization

Azerbaijan frees banks and insurers from taxation of profit for capitalization
# 29 October 2008 15:57 (UTC +04:00)
Baku. Vahab Rzayev - APA-Economics. On October 28, the Parliament of Azerbaijan gave a first reading passage to the Bill “On the Incentives to Increase the Capitalization of Banks, Insurance and Reinsurance Companies”.
Under the bill, banks, insurance and reinsurance companies would be exempted from tax on the part of profit that will go to capitalization.
The free-tax profit for capitalization will come effective from 1 January 2009 for a period of 3 years.
Thus, the Government has begun to aid the financial sector structures. The coincidence of this process with the global financial crisis is not a coincidence. Despite the fact that the crisis have a no direct negative impact on Azerbaijan, it could reduce the capitalization of banks, insurance and reinsurance companies.
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