Bulk of Azerbaijani banks registered in U.S. Tax Administration

Two more financial structures of Azerbaijan joined the US's Internal Revenue System (IRS), by which the tax authorities of Azerbaijan will provide information on the accounts of citizens of the United States, the IRS told Trend Nov.1.

Thus, Pasha Heyat insurance company and Kredobank JSC have passed registration in the system.

Pasha Heyat is the second insurance company registered in the system after Qala Heyat.

Mainly banks have been connected to the IRS system so far.

Earlier, Azerbaijan and the IRS agreed on conclusion of the intergovernmental agreement on the implementation of the country's banks FATCA - the law on taxation of foreign accounts of US residents. Starting from July 2014, banks in all countries should connect to the IRS system and inform them about these accounts. Otherwise, their relationship will be sanctioned: tax from the payments in favor of the bank's any passive income from US assets in the amount of 30 percent of their volume. Since 2017, it is provided the same collection of revenue from the sale of securities and even transit payments.

Number of Azerbaijani banks registered in the system today reached 42 out of 44 operating in the country.

Naxcivanbank, Kauthar Bank, Bank Respublika, VTB Bank (Azerbaijan), AGBank, Bank BTB, Rabitabank, Bank of Azerbaijan, Unibank, YapiKredi Bank Azerbaijan, Bank Silk Way, AccessBank , Bank Standard, Ekspressbank, DekaBank, NBC Bank, AFB Bank, Azerbaijan Senaye Banki, as well as the Baku branch of Bank Melli Iran, International Bank of Azerbaijan (IBA), Bank Technique, Zaminbank, Bank Avrasiya, Azer Turk Bank, Muganbank, Caucasian Development Bank, Kapital Bank, Pasha Bank, Gunay Bank, DemirBank, Xalq Bank, Turan Bank, Nikoil Bank, AtaBank, Ganjabank, Bank of Baku, Azerbaijan Kredit Bankı, Parabank, United Credit Bank, Atrabank and Amrahbank have already joined the IRS.

Furthermore, subsidiaries of Azerbaijani banks in Georgia - Caucasus Development Bank - Georgia joined the system in July. Two subsidiaries of Azerbaijani banks - International Bank of Azerbaijan - Georgia and PASHA Bank Georgia have been registered earlier.

Azerpoct Ltd., the national postal operator of Azerbaijan, and the Baku office of the Baker Tilly British auditing and consulting company have also joined the system.

Azerbaijan was included in the IRS list of cooperating countries in mid-May, and the deadline for registration of Azerbaijani financial institutions in the system of the American tax authority has been extended until 31 December.

The final text of the Azerbaijan-U.S. intergovernmental agreement, the completion of all the necessary domestic procedures and signing will be held immediately by the end of 2014, and the additional document regulating the practical organization of the exchange of information, provision of privacy and other issues, as expected will be signed by the end of September in 2015.