In this page:
Accounting Rules |
Tax Rates |
Intellectual Property |
Legal Framework |
- Tax Year
The financial year begins on the 1st of January and ends on 31st December of the same year.
- Accounting Standards
The Azerbaijani accounting norms respect the norms by the International Accounting Standards Board.
For more information, visit the website of the Ministry of Finance of the Republic of Azerbaijan (in English and Russian).
To consult the laws on the accounting norms in the Republic of Azerbaijan, click here.
- Accounting Regulation Bodies
Ministry of Finance of the Republic of Azerbaijan
- Accounting Reports
Certain companies have to use the IFRS norms : financial institutions, big companies, Investment Funds and credit institutions. Other companies have the choice between IFRS and national (NAS) norms. Small companies (whose annual sales turnover is less than 2.5 billion AZM or whose assets value is less than 5 billion AZM) will have the choice between NAS and a simplified method of accounting.
The accounting structure includes the balance sheet, the profit and loss account and the notes to the accounts.
- Publication Requirements
With the exception of companies operating under a Production Sharing Agreement (PSA), annual accounts should be in Azeri and in the local currency (manat). The Production Sharing Agreement (PSA) exempts certain foreign companies from the form of their accounts. In practice, the majority amongst them use the IFRS norms.
- Professional Accountancy Bodies
The Chamber of Auditors of Azerbaijan Republic
Association of Accountants of the Republic of Azerbaijan
- Certification and Auditing
Audit is obligatory for companies having foreign capital, for Private Limited companies and companies whose annual turnover is more than 2.5 billion AZM or whose assets value is more than 5 billion AZM.The auditor should be certified by the Chamber of Auditors of Azerbaijan.
The Auditing Services Law 1995 governs the audit rules in Azerbaijan. These are based on the international norms (ISAs).
You can contact an external auditor: Deloitte, Ernst & Young, PricewaterhouseCoopers.
- Accounting News
Azerbaijan: general information website on the Republic of Azerbaijan.
- Nature of the Tax
Əlavə Dəyər Vergisi (ƏDV) - VAT (Value Added Tax).
- Tax Rate
- Reduced Tax Rate
Exports as well as financial and insurance services are exempted from VAT.
- Other Consumption Taxes
Excise duties on alcohol, tobacco products, oil products, light vehicles, leisure and sport yachts and certain floating transports.
Learn more about Service Providers in Azerbaijan on Globaltrade.net, the Directory for International Trade Service Providers.
- Company Tax
- Tax Rate For Foreign Companies
A person is considered as a resident if he has stayed for an accumulated period of more than 182 days in a calendar year on the territory of Azerbaijan. Non-residents are taxed on their consumption in the same way as residents.
- Capital Gains Taxation
Capital gains are included in taxable income and taxed at the regular rate.
- Main Allowable Deductions and Tax Credits
Possible deductions for expenses connected with the obtaining of income, interests on loans, repair expenses, business trip expenses, depreciation, tax paid overseas.
- Other Corporate Taxes
Real property tax, social security contributions, assets tax.
- Other Domestic Resources
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.
Country Comparison For Corporate Taxation
||Eastern Europe & Central Asia
|Number of Payments of Taxes per Year
|Time Taken For Administrative Formalities (Hours)
|Total Share of Taxes (% of Profit)
- Last Available Data.
|From AZN 0 to 24,000
|More than AZN 24,000
- Allowable Deductions and Tax Credits
Some expenses are not included in the taxable income, such as: the reimbursement of business expenses; dividends and interest received by physical persons and previously taxed at the source of payment in the Azerbaijan Republic; and entertainment and meals, employee’s accommodation and other expenses of social nature incurred by the employer for employee.
- Special Expatriate Tax Regime
Expatriates are taxed on their Azerbaijani income at the same rate as the nationals.
Learn more about Taxes and Accounting in Azerbaijan on Globaltrade.net, the Directory for International Trade Service Providers.
- National Standards Organizations
National Agency for Standardization, (website in English under construction)
- Integration in the International Standards Network
The institution responsible for laying down product standards and certification in Azerbaijan is The State Agency on Standardization, Metrology and Patents of Azerbaijan (AZSTAND). AZSTAND is a committee member of the International Organization for Standardization (ISO), member of the Interregional Association for Standardization (IRSA), and member of the Euro-Asian Council for Standardization, Metrology and Certification (EASC).
- Classification of Standards
AZS. The National Agency for Standardization has a website on which one can consult the classifications and the procedure for classification (only in Russian, the English website is currently under construction).
- Online Consultation of Standards
Consult the standards on the National Agency for Standardization (only in Russian, the English website is currently under construction).
- Certification Organizations
Système “UKRSEPRO” (en anglais) Website in English.
- General Information
Kwintessential:, guide and advices for the Republic of Azerbaijan
- Opening Hours and Days
Banks: from 9.30 am to 5.30 pm from Monday to Friday.
Companies : from 9 am to 6 pm from Monday to Friday.
Shops : from 9 am to 7 pm from Monday to Saturday.
Weekly off-days : Saturday and Sunday.
|New Year's Day
|Extended holiday (the day after New Years)
|Navroz (traditional Iranian festival celebrating the new year according to the Iranian calendar)
||from 20th March to 22nd March included
|Proclamation of the first Democratic Republic
|National Salvation Day
|National Army and Navy Day
|End of Ramadan
||2 days (varies according to the year)
|Eid-ul-Adha or Big Baïram or Aïd or Tabaski or Id-Ul-Zuha (Bakrid) - Mutton Festival
||2 days (varies according to the year)
Periods When Companies Usually Close
||from mid-June to end of August
||from the end of December to the beginning of January
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Last Updates: October 2014