Crypto Incomes And Profits Are Subject To Taxation, Says Azerbaijan’s Ministry Of Taxesbr>
Nijat Imanov, deputy director general of the Tax Policy and Strategic Research Department of the Azerbaijan’s Ministry Of Taxes, said that revenue from crypto-to-fiat transactions will be subject to taxation in the country.
Speaking at the second Finance and Investment Forum (FIF 2018) in Baku, Imanov said that revenues generated by entities will face “profit tax,” and individuals trading cryptocurrencies will be subject to “income tax.”
“Incomes from operations with cryptocurrencies will be taxed,” said Imanov. “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.”
The Azerbaijani cryptocurrency market has seen significant growth in the second half of last year, with crypto trading becoming an increasingly popular means of income. The country’s Taxes Ministry is hoping to increase budget revenues through crypto taxation.
In February of this year, Mikayil Jabbarov, Azerbaijan’s Minister of Taxes, said that the ministry will explore the application of blockchain technology for various procedures. He said the technology would help tax authorities organize tasks at a higher level.