Azerbaijan is drafting amendments to the Tax Code that would change fines imposed on financial institutions for failing to report non-residents’ financial transactions. One penalty would be cut, while another would rise 2.5 times.
Under the draft amendments to Azerbaijan’s Tax Code, financial institutions that fail to report non-residents’ financial transactions carried out on Azerbaijani territory would face a reduced fine. The penalty, currently set at 30% of the funds credited to the account, would drop to 10%, though the amount could not be less than 1,000 manats.
At the same time, the fine for failing to report accounts with no credit transactions would rise. The penalty, currently 400 manats per account, would increase to 1,000 manats — a 2.5-fold jump.
The draft cites the experience of European and CIS countries, including Russia, Portugal, Poland, Lithuania and Hungary, to justify the changes. According to the document, fines for similar violations in those countries range from 1,000 manats to 500,000 manats, which is why reducing the existing sanction was deemed appropriate.
