Azerbaijan imposes 20%-tax on outflow of capital

Azerbaijan imposes 20%-tax on outflow of capital
# 19 January 2016 09:27 (UTC +04:00)

He noted that this draft law has been adopted in many countries and is based on liberalization of currency and capital movement: “Liberalization of currency and capital movement means that capital inflow is liberalized. We thought again that it would be possible to completely prohibit currency and capital movement. However, this would prevent capital inflow. We just imposed a tax on capital outflow such as investing in foreign country, purchase of property and opening of accounts abroad. This draft law has not completely prohibited the currency and capital movement. However, the banks will regulate this process while people submit documents on education and health expenditures. 20%-tax will be imposed here. The draft law on Currency Regulation does not completely prohibit the currency and capital movement, these processes are simply regulated by economic method”.

According to amendments, if an individual transfers over $50,000 to the accounts of his/her relatives (husband, wife, grandmother, grandfather, children, brothers, sisters, step children, stepparents), 20%-tax will be collected from that amount during the same calendar year. It will also be taken into account the money transfer operations conducted by an individual in foreign currency without opening an account during the same year.

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THE OPERATION IS BEING PERFORMED