Benefits will be applied to interest income on deposits in Azerbaijan, Trend reports.

This issue is reflected in the amendment to the Tax Code, which was discussed at a meeting of Azerbaijan’s Milli Majlis (Parliament).

The amendment exempts from taxation interest income on deposits made by people in each bank for a period of 18 months or longer in national currency. If a citizen’s monthly income from a deposit is up to 200 manat ($117) in national currency, these monies are totally excluded from income tax. If the amount exceeds 200 manat ($117), a portion of the excess will be exempt from income tax.

For instance, if a person deposits 24,000 manat ($14,117) at 10 percent, his annual income is 2,400 manat ($1,411), and his monthly income is 200 manat ($117). In this instance, a citizen’s savings income will be tax-free. If a citizen deposits 30,000 manat ($17,647) at 10 percent, his annual income is 3,000 manat ($1,764), from which 2,400 manat ($1,411) are deducted, and the remainder is subject to 10 per
cent income tax. In this situation, a citizen must pay a total tax of 60 manat ($35).

Source: Trend News Agency