Azerbaijan to resume taxing interest on deposits from tomorrow

From tomorrow, Azerbaijan will impose a 10% tax on annual interest income on deposits of individuals paid by local banks and local branches of foreign banks, Report informs.

These incomes were exempted from taxation from February 1, 2016, for a period of 7 years.

However, the deadline for the relevant amendment to the Tax Code was not extended.

The exemption of interest on deposits from tax is one of the steps taken to prevent the outflow of savings from banks after two devaluations of the manat in 2015. In addition, from March 4, 2016, to April 5, 2021, deposits in Azerbaijan were fully insured.