OREANDA-NEWS. November 30, 2011. The Central Bank of Azerbaijan estimated exemption of banks from profit tax within the anti-crisis measures as the most effective tool.

The CBA estimates that tax holidays organized in order to stimulate banks’ capitalization have given positive results.

"As a result of these measures, in 2009-10 the banks directed more than 90% of profit for their capitalization that ensured financial stability and expansion of capacity of banking services. A part of profit directed for capitalization and exempted for 3 years from income tax became one of the most effective tools within the anti-crisis measures and was regarded by the banking community as a serious measure of support," the Bank said.

Since 1 January 2009 in Azerbaijan the insurance companies and banks have been exempted from income tax for the next 3 years in the part, which is directed for company’s capitalization. This decision loses its validity by the end of 2011.