Azerbaijan Tax Ministry Clarifies VAT Offset for Leasing Companies

The Azerbaijani Ministry of Taxes Jan. 10 clarified the VAT offset for leasing companies, under recent changes to the Tax Code. The clarification includes that: 1) leasing companies and leasing entrepreneurs may offset VAT paid when acquiring assets; 2) the primary goals of the change are to create an equal tax regime for financing instruments, to increase efficiency, to reduce the tax burden on lessors, and to optimize the tax burden; 3) the loan interest income of the leasing companies remains exempt from VAT as financial services; 4) for assets acquired without paying VAT, both the value of the asset ...