Accounting & Tax Services: Personal & Corporate Taxes
Excise duties are applicable to alcohol, e-cigarettes, tobacco products, energy drinks, oil products, leisure and sport yachts, imported platinum, gold, jewelry, diamonds, leather goods.
Tax rate for foreign companies, corporate profit tax is 20% from net profits, after deducting expenses.
Foreign companies are taxed on their Azerbaijan income.
Capital gains are included in taxable income. They are taxed at the standard corporate tax rate of 20%.
Bad debts are tax deductible. Fines, penalties, charitable contributions are not deductible.
Business trip expenses and repairs within certain limits are also deductible.
Individual entrepreneurs pay - 20%
Azerbaijani residents are taxed on their worldwide income, whereas non-residents are taxed on their Azerbaijani income. The rate is the same as for nationals.
Withholding Taxes:
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Dividends - 10%
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Interest - 10%
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Royalties - 14%
Micro-business: Companies with the annual turnover of 200,000 AZN qualify as a micro business.
Taxpayers shall submit their corporate income tax returns no later than March 31st following the previous fiscal year. The calculated final income tax shall be paid to the state treasury by the same deadline.
Corporate income tax interim reports should be submitted quarterly.
Taxpayers must pay 2 percent simplified tax from total turnover, without deducting expenses, if they are not registered for VAT and the turnover does not exceed 200,000 AZN during 12-month period.
Payroll taxes in Azerbaijan are mainly deducted by the employer and paid on behalf of the employees.
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