16:59 - 15.02.2022

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February 15, Fineko/abc.az. In Azerbaijan, limited liability companies (LLCs) change their organizational and legal form and turn into closed joint-stock companies (CJSCs), ABC.AZ reports, citing investment consultant Orkhan Bagirov.

He noted that the reason for this is the exemption of JSCs from the tax on dividends for the period of 7 years:

"After the decision was made in 2019 to exempt individuals from the tax on dividends in JSCs for the period of 7 years, many LLCs turned into JSCs so that they could take advantage of this benefit. But since the requirement to take advantage of the tax benefit is to become a fictitious joint-stock company, many of these companies switched to a closed form, and the listing on the stock exchange did not take place. The government's use of tax incentives or other incentives in the form of visible rates may increase interest in listing on the stock exchange."