14:55 - 28.12.2023

---

December 28, Fineko/abc.az. One of the important changes in the direction of reducing the tax burden on business and stimulating entrepreneurial activity is the reduction of the tax rate on dividends. So, starting from next year, the tax rate on dividend income has been lowered from 10% to 5%.

ABC.AZ reports that according to the State Tax Service, in accordance with the amendments to the Tax Code, the tax benefit for state and local governments, budgetary institutions and legal entities established on behalf of the state on income from dividends is abolished, and taxation in the amount of 5% is introduced.

"These changes in tax legislation, concerning the taxation of income from dividends are aimed at creating equal economic conditions for all participants, regardless of the form of ownership, and the goals are to prevent obstacles to attracting investments into the favorable investment environment of Azerbaijan, stimulate investments in stocks in capital markets, and create stable tax environment for investors who are not participants capital markets, and mandatory collection of tax on dividends by central executive authorities," the Service says.