Baku: The head of the State Tax Service, Orkhan Nazarli, announced that reducing the tax on dividends received from abroad is expected to encourage voluntary income declaration. This announcement was made during the Milli Majlis Committee on Economic Policy, Industry, and Entrepreneurship’s meeting, where proposed amendments to the Tax Code were discussed.

According to Azeri-Press News Agency, the proposed changes to the Tax Code are projected to generate an additional 623 million manat for the state budget. Nazarli highlighted that while some amendments would yield immediate results, others are expected to have long-term impacts. The reduction in the tax rate on foreign dividend income is anticipated to lead to the repatriation of financial assets and investments back to Azerbaijan.

He further stated that tax incentives in key sectors such as public-private partnerships, automotive production, shipbuilding, fishing, agriculture, and public catering are expected to boost added value and production volumes. Additionally, the introduction of a “VAT refund” mechanism for services in hairdressing and beauty salons is aimed at enhancing the transparency of these sectors.