Azerbaijani Constitutional Court to assess legality of dividends taxation

Baku Administrative Economic Court No. 1 has appealed to the Azerbaijani Constitutional Court with a request in connection with the interpretation of Article 13.2.15 of the Tax Code, which envisages the taxation of dividends directed at increasing the authorized capital of joint stock companies, the Constitutional Court told Trend on Wednesday.

The appeal says that in the case of directing a dividend at increasing authorized capital of joint-stock company, shareholders do not actually receive any money. In this case a dispute arises whether to impose or not impose taxes on dividends.

Baku Administrative Economic Court No.1 asked the Constitutional Court to comment on the provisions of this article. According to the Tax Code, tax on dividends remains at 10 percent.


/Trend/