Azerbaijan to oblige bloggers to pay taxes


February 6, Fineko/ The Ministry of Taxes of Azerbaijan proposes to levy taxes on income from advertising in social networks.

Avaz Guliyev, Director of the Tax Legislation Office of the Ministry’s Tax Policy Department, has stated that many people who are "popular" in social networks receive income through advertising of a certain product, but avoid payment of taxes.

"According to the legislation, such people as all other engaged in commercial activities, in particular, profit-making individuals and legal entities must pay 10% of income tax and 18% VAT. A person who is not registered in tax authorities receives money from advertising in the social network by means of non-cash payment, while the bank charges 18% VAT for this operation," Guliyev said.

He pointed out that if the customer of advertisement is a foreign citizen or a company, the local residents must also pay taxes in accordance with the Azerbaijani tax legislation.