Money transfer fee changes not to affect foreign investors
Foreign investors will not be negatively affected by a mandatory fee of 20 percent on remittances for sending money abroad, Baku’s ambassador to the UK Tahir Taghizadeh wrote in the letter published in Financial Times.
“Non-resident investors will continue to freely execute any trade or other transactions, export and import activities and have the rights to perform foreign exchange transactions through bank offices in support of such transactions,” the diplomat wrote.
He clarified that cash/hard currency importation into Azerbaijan in excess of $50,000 equivalent is subject to reporting to the financial monitoring service.
“Repatriation of 100 per cent of a non-resident investment into
Azerbaijan plus profit made on that investment after payment of all
taxes (mainly a 20 per cent profit tax and a 10 per cent
withholding tax) has been guaranteed to foreign investors by the
law on the protection of foreign investments,” he wrote.
A mandatory fee of 20 percent on remittances for sending money abroad, which exceeds $50,000 during a year, was introduced in Azerbaijan, according to the amendments to the Law on currency regulation adopted by the Parliament.
This charge does not apply to transfers abroad in relation to the cost of medical treatment, education, execution of court decisions and law enforcement agencies outside of Azerbaijan.
Currency exported as direct investment for the purchase of securities, real estate and land, as well as for the maintenance of Azerbaijani companies’ foreign missions also will be taxed with a mandatory fee of 20 percent.
This charge does not apply to legal entities, the state share in capital of which exceeds 50 percent.
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