SOFAZ to be exempted from tax

Exemption from income tax of the funds allocated to the assets of the State Oil Fund of Azerbaijan (SOFAZ), and VAT on imports of gold and currency valuables, imported into the country for placement in the fund's assets, is planned in Azerbaijan.

This was stated in the draft law on amendments and additions to the Tax Code of the country, which was discussed at the meeting of the Parliamentary Committee on economic policy on Tuesday

Earlier, VAT exemption covered only valuables, placed in the assets of Azerbaijani Central Bank.
Previously, according to the decision of Azerbaijani Cabinet of Ministers, gold imported into the country for the needs of the Oil Fund were exempted from VAT and customs duties.

According to the investment strategy of SOFAZ, starting this year, up to five per cent of the investment portfolio may be invested in gold for the first time.

Projected total cost (the average amount) of the investment portfolio at SOFAZ in 2012 was set at 23 billion manats, while in late 2011, it was predicted at 19.4 billion manats.

As of December 1, the Oil Fund's assets amounted to $ 33 895 million.

SOFAZ was established in 1999 when its assets amounted to $271 million.

The main purposes of the fund are: accumulation of funds and placement of the fund's assets abroad to minimize the negative impact on the economy, preventing a "Dutch syndrome" to ensure savings for future generations and to maintain the current socio-economic standard in the country.


/Trend/