Baku: Income earned from renting out residential premises owned by individuals to other individuals will now be subject to a 10% tax withheld at the source of payment. This change excludes hotels and hotel-type accommodation facilities.

According to Azeri-Press News Agency, this new tax rate is part of the amendments to the Tax Code approved by President Ilham Aliyev. Previously, the legislation mandated a 14% tax on income earned by individuals from renting out housing. The recent amendments reduce this rate to 10%, aiming to ease the tax burden on individuals renting out residential properties.

In cases where the rent is paid by an individual who is not registered as a taxpayer, the lessor or a tax agent appointed by the lessor will be responsible for paying the tax at the 10% rate. They must also register with the tax authorities and submit a tax declaration in accordance with this provision.