Azerbaijan set to Tax Crypto Profits and Incomes
Ministry of Tax Reported
Private and Corporate Incomes to be Taxed
The revenue accrued from the crypto related transactions will undergo taxation in Azerbaijan. This is in accordance with the deputy director of the department of tax policy and strategic studies in the ministry of Taxes, Nidjat Imanov. Imanov made a clarification on this department’s position and decision in the Financial and Investment Forum which was in Baku on Saturday. This is according to the trade news agency reports.
“Incomes from operations with cryptocurrencies will be taxed. Formally, this means – corporate profit tax for legal entities, and personal income tax for an individual, if someone bought cryptocurrency and then sold it at a higher price, that amount must be reported as income and subjected to taxation.”
Therefore, the profits from the organizations based in Azerbaijan were subject to tax under the country’s tax code. As per the current statistics, the corporate profit tax is 20%. Additionally, the personal income tax is progressive and therefore money earned by people abroad and in the county is subject to government taxation. A tax of 14% is taxed to the incomes less than 2,500 AZN in a month and a 25% taxation to the amounts which are more than that.
The Buying and Holding Bitcoin works
The cryptocurrency volume has been growing in Azerbaijan and the government wants to increase their budget by taxing crypto incomes. The crypto market has been growing between last year May and December.
The founder and the CEO of Crypto Consulting said to the Trend;
“During that period, even small investments of $10 or so, in almost any cryptocurrency, were profitable.”
Just after some few weak months, the markets have been growing again. Guliyev made a warning that the markets were not subject to daily growth and various skills were required to make a prediction of which crypto might rise.
Azerbaijan Will Develop Crypto and Blockchain Technologies
The Eurasian country is rich in the natural resources, the gas, and oil and has been keeping a distance from cryptocurrencies. In 2017 December, the Central Bank of Azerbaijan said that the government did not recognize this as a method of payment and crypto were dangerous investment instruments. However, the current taken by the government to involve itself in taxing cryptocurrencies indicated a hanging move.
The “Center for the Study and Development of Cryptocurrency Markets and Blockchain Technologies,” is an organization designed to offer education and also to implement the Blockchain technologies in the banking sector.