Azernews.Az

By Amina Nazarli

Some commercial banks in Azerbaijan have stopped cashing from plastic cards designed for entrepreneurs.

Report informed that such a step has been taken upon recommendation of the Financial Market Supervisory Body (FMSB).

“The FMSB representative called all banks and orally advised to suspend cashing from business cards. This comes out of execution of the law "On non-cash transactions”,” the report reads.

Recently limitations have been set for cashing out from accounts of entrepreneurs in accordance with new rules. In other words, individuals - entrepreneurs will be able to cash out funds only after paying the relevant taxes.

This rule applies only to accounts of individuals engaged in entrepreneurial activities, and does not apply to other current accounts and deposits of individuals.

The law “On non-cash transactions” was approved on December 2016. Under the law, trade facilities and public catering registered as VAT payers and whose annual turnover exceeds 200,000 manats ($118,000) can conduct cash settlements for up to 30,000 manats ($17,786) per month, while other taxpayers up to 15,000 manats ($8,893) per month.

In case of violation of the law requirements, the individuals will be fined with financial sanctions amounting to 10 percent of the operations. If the violation is committed for the second time, the penalty will be 20 percent, for the third time and more - 40 percent.

The law limits the ability of entrepreneurs to cash out money in banks. Banks or postal operators will withhold a simplified tax of 1 percent of the amount for withdrawing cash from bank accounts of legal entities and private entrepreneurs. These restrictions apply only to legal entities and individuals engaged in entrepreneurial activities.

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Amina Nazarli is AzerNews’ staff journalist, follow her on Twitter: @amina_nazarli

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