Azerbaijan

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TAXES - ACCOUNTING

 

 

Corporate tax

Tax rate for resident companies

22%

   
Tax rate on long-term capital gains Long-term capital gains are taxed at 24%.
   
System governing groups of companies and dividends paid by subsidiaries to their parent companies The tax is withheld at the rate of 10%.
   
Tax rate on branches The general profit tax rate is 24 percent. An additional branch remittance tax of 10% applies to profit remittances from the branch to the head office. The taxable base is net profits after taxes.




Income tax

Fiscal year The financial year begins on 1st of January and ends on 31st December of each year.
   
Income tax rate Personal income tax rates are progressive:

Taxable income
Rate
< 1 800 000 Manat
0%
1 800 000 - 36 000 000 Manat
14%
> 36 000 000 Manat
35% + 4 788 000 Manat
   



VAT rates

Standard rates 18%
   
Reduced rates Exports as well as financial and assurance services are VAT exempted.



Other important taxes


Name of tax
Rate
Tax on interests  
Deducted at source at the rate of 10%,  
Tax on transfers of technology  
20%  
Tax on sea transport  
6%  


 

Accounting

Obligations and publications
Companies have to produce annually documents which present a precise analysis of the economic and financial situation.

Certification and auditing
According to their status, companies should have to guarantee the exactness of their annual report.

Professionals and representative organizations
Vneshexpertservice, Baku.



Useful links
For further information, please check the investment's guide 2001 by BISNIS or download the ITIC Special Report on the Taxation Systems and Economic Development in Select Countries of Eurasia, June 2002 (PDF file).

Last modified in 2006 - ongoing update
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