Azerbaijan: Cryptocurrency Profits are Subject To Taxation

Revenue from cryptocurrency-to-fiat transactions will be subject to 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.

Imanov said,

“This is formalized as a profit tax for legal entities and income tax for individuals. If someone bought a cryptocurrency and then sold it after its price increased, this amount is recorded as income and therefore should be attracted 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.

Trend further reports that the Azerbaijani cryptocurrency market has seen significant growth between May and December 2017, with cryptocurrency trading becoming an increasingly popular means of income.

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