Azerbaijan set to tax gains from cryptocurrency transactions, according to a high-ranking official from the Tax Ministry. Authorities in the energy-rich nation intend to tap into both corporate profits and personal incomes. The country is now changing its policies and views on crypto matters.
The deputy-director of the Department of Tax Policy and Strategic Studies at the Ministry of Taxes, Nidjat Imanov said, Revenues from crypto transactions are subject to taxation in Azerbaijan. Imanov clarified his department’s position during the Financial and Investment Forum held in the capital Baku this Saturday, Trend news agency reported.
Imanov went further to expain:
“Incomes from operations with cryptocurrencies will be taxed. Formally, this means – corporate profit tax for legal entities, and personal income tax for individuals,” and “If someone bought cryptocurrency and then sold it at a higher price, that amount must be reported as income and subjected to taxation,”
The profits of all resident enterprises in Azerbaijan are taxed under the country’s tax code. Currently, the corporate profit tax rate stands at 20 percent.
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The personal income tax is progressive and money earned by residents both home and abroad is taxed by the government. Incomes of less than 2,500 AZN a month (~$1,500) are taxed at 14 percent, and 25 percent tax is imposed on the amount exceeding that limit.