12:47 - 2.11.2023

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November 2, Fineko/abc.az. Tax benefits will be applied to deposits in two cases.

ABC.AZ reports that this is reflected in Azerbaijan’s State Budget Package for 2024, submitted for today’s discussion at a meeting of the Parliamentary Committee on Economic Policy, Industry & Entrepreneurship.

From February 1, 2016, for 7 years, annual interest income paid by a local bank and a branch of a foreign bank in Azerbaijan on deposits of individuals were exempt from income tax and expired on February 1, 2023. From this date, banks withhold tax from the source of payment at the rate of 10% from interest income on deposits.

According to the draft, taking into account the fact that interest income on deposits of individuals is their own capital gain, they will be taxed at the rate of 10% at the source of payment by banks, regardless of whether their interest income is in national or foreign currency.