OREANDA-NEWS. May 13, 2010. The International Monetary Fund (IMF) recommends the Azerbaijani government to continue increase of adequacy of tax regime to fundamentals of the region.

On May 13, head of IMF Mission to Azerbaijan Nienke Oomes said in video conference between Washington and Baku, reduction of rate of tax on profits made from January 1 from 22 to 20 % made it adequate to rates of corporate income taxes, existing in the region.

“The government also lowered the maximum rate of income tax from 35 to 30%, but rate of individuals’ income tax still remains inadequate to situation in the region. We recommended the government opportunity to reduce it to the level existing in Russia, Ukraine or Georgia,” N. Oomes said.

For example, single income tax rate of 13% functions in Russia. This rate was introduced for legalization of real wages.