Azernews.Az

By Aynur Karimova

Azerbaijan's Taxes Minister Fazil Mammadov has voiced a proposal to make winnings from sports betting in Azerbaijan subject to income tax starting in 2016.

Addressing a discussion over draft amendments and additions to the Tax Code at a meeting of the parliamentary committee on economic policy on October 16, he noted that winnings from bets have not been taxed since January 1, 2013.

Given the fact that the annual turnover of sports betting in Azerbaijan amounts to about 300 million manats ($286.45 million), state budget revenues from the taxation of sports betting could reach 25 million manats ($23.87 million) in 2016.

"As a result, over the past period it contributed to the development of sports betting. Therefore, it is necessary to impose taxes on winnings from sports betting. Given the current economic situation, we consider it appropriate," the minister added.

Under the taxes ministry's proposal, those taking part in bets will have to pay a tax of 10 percent of their winnings.

Those issuing prizes to the winners will be classified as tax agents, that is, persons required to withhold the tax at the payment source. They are required to pay the tax to the state budget and submit a declaration to tax authorities no later than the 20th day of the following month.

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Aynur Karimova is AzerNews’ staff journalist, follow her on Twitter: @Aynur_Karimova

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