"Azerbaijan is taxing profits and incomes from cryptocurrency transactions" - said Ministry of Taxes representative Nidjat Imanov during the second Finance and Investment Forum (FIF 2018) in Baku on Saturday.
“Incomes from operations with cryptocurrencies are subject to be taxed. Formally, this means – corporate profit tax for legal entities, and personal income tax for individuals. If someone bought cryptocurrency and then sold it at a higher price, that amount must be reported as income and subjected to taxation” - Imanov stated.
Incomes of all resident businesses and individuals are regulated by the countries’ tax code: the corporate profit tax rate stands at 20 percent and the personal one is a progressive tax and all the money gained in the home country or abroad are taxed by the government.
Meanwhile the recent tendency shows the positive dynamic in cryptocurrency trade growth in the country. A new association called “Center for the Study and Development of Cryptocurrency Markets and Blockchain Technologies” has been created earlier this month. It aims at conducting educational work, elaborating proposals and regulatory mechanisms, and offer consulting services. Through cooperation with foreign experts, the Centers’ representatives will introduce blockchain technology in banking and corporate sectors.
By Anastasia Bugaychenko