Paying Taxes in Azerbaijan

 1. What is the corporate tax in Azerbaijan?

Any company registered in Azerbaijan is subject to a corporate tax rate of 20% for its worldwide income. 

2. What is the VAT in Azerbaijan?

In Azerbaijan, the standard VAT rate is 18%. As in other European systems, there are several goods or transactions that are exempt from VAT rate or that are zero-rated. 

3. How can the VAT be refunded in Azerbaijan?

The payment of VAT in Azerbaijan is done only electronically, therefore the invoices, together with an application form for a VAT refund must be submitted after every three months. The refund will be received in a 45 days period after the application.

4. What is the dividend tax in Azerbaijan?

The dividend tax rate in Azerbaijan is 10%, unless there is a tax treaty that stipulates a reduced rate.

5. Are there any incentives for foreign investors in Azerbaijan?

The law regarding foreign investment in Azerbaijan has been changing in order to meet the government’s plan to encourage foreign investment. Therefore, there has been introduced the protection against nationalization or for profit repatriation. Basically, the most businesses regard oil deals. It is expected to be introduced in the law other aspects to attract foreign investment, such as tax deductions or other financial incentives.

6. Why do I need a local accountant for my business in Azerbaijan?

A local accountant in Azerbaijan would know better how to operate in the system, especially in a business that would regard oil and gas. His or her experience in a similar company would be of a great use, making a local accountant a genuine asset for your business.