Favourable tax regime

 

  • Azerbaijan is the fifth country narrowed the distance to the best performance in paying taxes the most since 2004, according to the World Bank’s “Doing business 2013” 
  • Azerbaijan has third easiest tax paying procedures among CIS countries
  • Fully digitalized tax payment system (e-filing and e-payment)
  • Corporate tax reduced by 7% down to 20% within last 10 years
  • Simplified tax system introduced to promote SMEs, whereby taxpayers with total turnover not exceeding 120,000 AZN for the previous 12 consecutive months are levied with one tax at the rate of 4% for taxpayers operating in Baku and 2% for taxpayers operating in other regions of Azerbaijan. Taxpayers of simplified tax are exempt from VAT, corporate and property taxes
  • Tax holidays (except land tax) in agriculture
  • Tax incentives in industrial and hi-tech parks