Azerbaijan has joined the growing list of countries that are taxing revenue received in cryptocurrencies.
Revenues received in cryptocurrency in Azerbaijan are subject to taxation, according to Nijat Imanov, deputy director general of the tax policy and strategic research department for the Taxes Ministry, according to the country’s Trend News Agency. Imanov noted the requirement during the second Finance and Investment Forum in Baku on May 5.
If someone buys a cryptocurrency and sells it at a higher price, the profit is recorded as income and subject to taxation, Imanov said, calling it a profit tax for legal entities and an income tax for individuals.
Crypto Activity on The Rise
Purchasing and selling cryptocurrencies on the country’s cryptocurrency market is a popular way of earning money. The market grew rapidly from May to December of 2017.
During this time frame, a person could benefit from as little as $10 in any cryptocurrency, according to Elnur Guliyev, director and founder of Crypto Consulting company. Such a situation does not happen often, he said, noting that the least expensive option is to purchase and resell bitcoin. He said the option still exists, although it is hard to say how long it will continue.