Comparative Assessment of Capital Income Taxation in Azerbaijan, Kazakhstan, Georgia, and Belarus

Authors

DOI:

https://doi.org/10.15549/jeecar.v9i2.761

Keywords:

effective tax rate, marginal investment, capital taxation, depreciation rates

Abstract

The marginal effective tax rates (METR) are determined in Azerbaijan, Kazakhstan, Georgia, and Belarus. The METR have high sensitivity from the tax depreciation rate, profit tax and interest rates for all countries. Sensitivity of the METR from inflation is high in Georgia and Belarus but is less in Azerbaijan and Kazakhstan. The calculations show that the current tax burden in Belarus is higher than in other countries (excluding debt financing). The current tax depreciation rate does not provide additional incentives for investment activity in these countries. The calculations are approximate, but they show that the tax depreciation rate depends on the inflation rate to create additional incentives for marginal investment. Georgia has the highest opportunities to increase investment activities by decreasing the real interest rate. Kazakhstan has greater tax advantages in manufacturing than Azerbaijan.

Author Biography

Baghish Ahmadov, Azerbaijan Economic State University (UNEC)

Dr. Baghish Ahmadov is an Associate Professor at Azerbaijan State University of Economics in Azerbaijan. He teaches Industrial organization and International investments related subjects.

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Published

2022-03-07

How to Cite

Ahmadov, B. (2022). Comparative Assessment of Capital Income Taxation in Azerbaijan, Kazakhstan, Georgia, and Belarus. Journal of Eastern European and Central Asian Research (JEECAR), 9(2), 217–228. https://doi.org/10.15549/jeecar.v9i2.761