According to a senior official of the ministry of Taxes, the gains from the transactions of crypto-currencies will be taxed in Azerbaijan. The authorities intend to take advantage of business profits and personal incomes. The country has already taken a conservative position on the digital currency, but the emphasis on taxation indicates a major change.
Source : Steve Buissinne , Pixabay. Azerbaijan wants to impose the transactions of crypto-currencies.
The income of corporations and businesses should be taxed
According to Rescue Imanov, deputy director of the department of tax policy and strategic studies at ministry of Taxes, the revenue from exchanges of crypto-currencies are imposed in the country. Mr. Imanov has clarified the position of his department during the forum on finance and investment which was held on Saturday in Baku. The revenues of the transactions cryptographic will be taxed, he said. If an investor bought a digital currency and then sold them at a higher price, this amount must be declared as income and subject to tax.
Check out below a video in English describing these facts :
The profits of all resident companies in Azerbaijan are levied under the tax code of the country. Currently, the tax rate on corporate profits is 20 %. The tax on the income of individuals is progressive. The government determines this rate. Income of less than $ 1,500 per month are taxed at 14 %. Beyond this limit, it is 25 %.
The market of crypto-currencies is alive and well in Azerbaijan
The volume of transactions of crypto-currencies is increasing in Azerbaijan, and the State hopes to increase their budget revenues thanks to the crypto-taxation. The market of the virtual currency has registered a rapid growth between may and December 2017. You could even make profitable small investments of the order of 10 dollars.
However, the market is very volatile. The investors must have more skills to optimize their investment. The Bitcoin is used today as a profitable investment on the long term. In fact, we expect to see the value of this crypto-currency to increase dramatically this year.
Source : NewsBitcoin