BAKU, Azerbaijan, December 16. One of the
suggested tweaks to the Tax Code, aimed at greasing the wheels of
investment and entrepreneurial spirit while lightening the load on
businesses, is to roll out tax breaks for theaters, cinemas,
museums, and symphony orchestras, Trend reports.
As per the information, the existing legislation stipulates that
75 percent of profits derived from the entrepreneurial activities
of cinematographic firms involved in film production and dubbing,
registered in the Republic of Azerbaijan, will be free from profit
tax for a duration of 3 years commencing January 1, 2024.
The data indicates that, pursuant to the proposed modifications,
the exemption percentage will rise from 75 to 90 percent, the
duration of validity will extend from 3 to 5 years, the number of
entities eligible for the exemption will increase from 2 to 6, and
individuals involved in theater, museum, symphony orchestra, and
film production will be included in the list of qualifying
entities.
“In addition, it is proposed to exempt 90 percent of the income
of film producers and individuals engaged in film production and
dubbing from income tax for a period of 5 years. Land tax exemption
for a period of 5 years is also envisaged.
Meanwhile, it is proposed to exempt from withholding tax income
from copyrights and licenses (royalties) at a rate of 14 percent
for a period of 5 years for the use or granting of copyrights in
intangible assets relating to the activities of a theater, museum,
symphony orchestra, film production, broadcasting, and dubbing.
In addition, the proposed amendments provide for the refund to
these persons of 50 percent of VAT paid by consumers who are
individuals on a non-cash basis for services rendered in the field
of theatrical performances, film screenings, museum visits, and
symphony orchestra concerts. The purpose of providing tax benefits
to the cultural sector is to develop this sphere, attract
additional investment, and ensure transparency of activities in
this area,” the information says.
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