Azerbaijan to Introduce Cryptocurrency Tax

More and more countries are starting to consider cryptocurrency as a taxable property. This time it is Azerbaijan’s turn.

A representative of Azerbaijan’s government announced at the Financial and Investment Forum held in Baku, the capital of the Republic, that revenues obtained from cryptocurrency transactions will be subject to taxation.

If an investor purchases a crypto asset and later sells it at a higher price, they have to declare gains and pay tax on the profit. Notably, legal entities will have to pay a corporate profit tax, while individuals will be subject to an income tax.

The Central Bank of Azerbaijan holds a conservative stance on cryptocurrencies. The country’s authorities have not recognized the digital assets as a legal and safe investment tool.

The Azerbaijani regulator said that it would closely track global cryptocurrency trends until the country developed a legal basis for financial transactions using the blockchain technology.