Baku: Azerbaijan’s government has approved a new tax policy lowering the income tax rate on residential property rentals to 10 percent. Income derived from renting residential premises, except for hotels and similar accommodation facilities, will now be subject to this revised withholding tax rate.
According to Azeri-Press news agency, this change is part of an amendment to the Tax Code, which was deliberated upon during the recent session of the Milli Majlis. Previously, the legislation mandated a 14 percent tax on income from renting apartments to individuals. The new amendment aims to reduce this tax burden to 10 percent.
The legislation specifies that when rent is paid by an individual not registered as a taxpayer, the responsibility to pay the 10 percent tax falls on the lessor or their designated tax agent. They must also file a tax return in accordance with the new amendment. Following discussions in the Milli Majlis, the draft law was voted on and successfully adopted in its third reading.