11:41 - 7.01.2024

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January 7, Fineko/abc.az. As further measures taken towards the development of the capital market, from February 1, 2023, dividends and interest income paid on shares and bonds traded on the public, regulated market for five years are exempt from income tax, ABC.AZ reports, referring to the State Tax Service.

"Thus, dividends on shares on the stock exchange are also exempt from taxes. The amendments made to the Tax Code in 2023 are designed to increase the targeted orientation of tax benefits in this direction. In the current state, the founders of enterprises are mainly not the owners of publicly traded and issued shares for trading on the regulated market, but other participants."

"In this regard, amendments were made to the Tax Code, aimed at reducing the tax rate on the source of payment of dividends from 10% to 5%, abolishing the exemption from tax on dividend income of state and local self-government bodies, budgetary organizations, legal entities of public law established on behalf of the state, and withholding tax at a 5% rate," the Service says.