Azerbaijan to Introduce Cryptocurrency Tax

Covesting

Contributor
Another country has recognised crypto as taxable property...

More and more countries are starting to consider cryptocurrency as a taxable property. This time it is Azerbaijan’s turn.

A representative of Azerbaijan’s government announced at the Financial and Investment Forum held in Baku, the capital of the Republic, that revenues obtained from cryptocurrency transactions will be subject to taxation.

If an investor purchases a crypto asset and later sells it at a higher price, they have to declare gains and pay tax on the profit. Notably, legal entities will have to pay a corporate profit tax, while individuals will be subject to an income tax.

The Central Bank of Azerbaijan holds a conservative stance on cryptocurrencies. The country’s authorities have not recognized the digital assets as a legal and safe investment tool.

The Azerbaijani regulator said that it would closely track global cryptocurrency trends until the country developed a legal basis for financial transactions using the blockchain technology.
 

CryptoTC

Crypto Fat Cat
Similar to US tax laws I guess. The reports I could find seem to imply that gains will be taxed as income, which is unlike the US, France, Canada and many other countries that have lower taxes on capital gains. At least long-term gains in the US are taxed on average 15% with 20% for high income earners and 0% for those in lowest Brackets.

According to bitcoin news, they are looking st 14-25% tax depending on income level.

“The profits of all resident enterprises in Azerbaijan are taxed under the country’s tax code. Currently, the corporate profit tax rate stands at 20 percent. The personal income tax is progressive and money earned by residents both home and abroad is taxed by the government. Incomes of less than 2,500 AZN a month (~$1,500) are taxed at 14 percent, and 25 percent tax is imposed on the amount exceeding that limit.”
 
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