15:35 - 26.12.2023

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December 26, Fineko/abc.az. Starting from 2024, the procedure of taxation of interest income on bank deposits is likely to change in Azerbaijan.

ABC.AZ reports with reference to the State Tax Service that since February 1, 2016, annual interest income paid by a local bank and a branch of a foreign bank in Azerbaijan on deposits of individuals has been exempt from income tax for seven years.

Starting from February 1, 2023, annual interest income on deposits of individuals paid by local banks and local branches of foreign banks will be taxed at the rate of 10%.

According to the changes, interest income on deposits placed by individuals for a period of 18 months or more in national currency in each bank will be exempt from tax. If the monthly income of a citizen on a deposit, calculated in national currency, is up to 200 manats, then these funds will be completely exempt from income tax. If the amount exceeds 200 manats, then a part of up to 200 manats will be exempt from income tax.