FAQ
Azerbaijan tax system ranks among the best in the world. Tax rates and tax payment methods in Azerbaijan are relatively simple and clear. Companies and individual entrepreneurs with tax identification number shall either obtain online tax login and password by signing an agreement with the tax authority or obtain ASAN signature (E-signature activated via mobile phone number).
If the question “How to pay tax in Azerbaijan ?” is understood as a technical one. The answer would be that in order to pay taxes in Azerbaijan it is important to login to e-taxes.gov.az system for proper tax filing and then by obtaining relevant treasury codes, again via online banking methods (usually accessible via ASAN imza or other online login setup of banks) by identifying the relevant code of the tax all taxes are paid via bank transfer. In addition to this, it is also possible to pay taxes at any bank in Azerbaijan. It must be noted that in that case, tax payment receipts must be kept. It is suggested to pay taxes online via online banking systems.
Any foreigner has equal rights regarding buying personal property in Azerbaijan as local citizens. A foreigner can buy real estate (immovable property) in Azerbaijan, with the exception of land. In other words, if you a foreign citizen or stateless person, you can buy a house, villa, apartment, commercial property and other property, but not land. Therefore, if you are not planning to buy land as a foreigner, you enjoy similar rights as local citizens.
Buying property in Azerbaijan usually covers the following processes:
- Finding a proper property, physical inspection and agreement on price and terms;
- Signing of a purchase agreement before notary (Note, it is possible to be represented via notary approved power of attorney, therefore, it is not necessary to be personally and physically in Azerbaijan);
- Together with notary deal stage, application to state registry over the property is conducted.
- Obtaining Title to the property.
A foreigner can freely dispose or sell the property and transfer the proceeds as any local person. Azerbaijani legislation does not discriminate regarding such rights between foreigner or a local person.
For details or questions, please contact us.
Getting Azerbaijani nationality is possible under naturalization as specified by the Law on Citizenship. For that, 5 years of continuous permanent residence, legal source of income, undertaking to abide by the Constitution and laws of Azerbaijan, and knowledge of Azerbaijani language is required.
In practice, a person shall start the process by obtaining residence permit. After staying in Azerbaijan 2 years via temporary residence permit, it is possible to apply for permanent residence. The 5 year period starts running from the date of the permanent residence card. A person shall learn and pass a test of Azerbaijani language and have legal source of income.
Applications are submitted to the State Migration Service, bu Azerbaijani President has the authority to grant Azerbaijani nationality.
For further questions, please contact us.
- General Corporate tax rate in Azerbaijan is 20% paid from the net profit of the company. The following tax reliefs and differing rates apply:
- Micro business with annual turnover below 200 000 AZN and employees below 10 persons are qualified for 75% relief from the taxation, i.e. corporate tax would be 5%.
- Businesses providing services to individual persons without tax registration and with annual turnover below 200 000 AZN shall pay 2% simplified tax out of their turnover (without deducting expenses)
Registering a company (Limited liability Company) in Azerbaijan is simplified and requires minimal documentation, such as application form, company incorporation documents (Articles of Association, Incorporation decision of shareholders). The Registration Authority is the Ministry of Taxes. If a foreign person has local migration registration in Azerbaijan, it is possible to register a company in Azerbaijan online within a couple of minutes.
For detailed information please click here.
In practice TRP is issued for 3-12 months.
- Foreigners and stateless persons are issued permit for temporary residence in the Republic of Azerbaijan in the following cases:
- In case they are in close relationship with a citizen of the Republic of Azerbaijan. Parents and children, grandparents and grandchildren, sister and brothers having common parents are considered to be close relatives by law.
- In case they invest at least 500 000 manats (AZN) in the economy of the country;
- In case they possess real estate which is worth at least 100 000 manats (AZN) on the territory of the Republic of Azerbaijan or funds in the same amount in the banks of the Republic of Azerbaijan; In such cases the price of the real estate in Azerbaijan is assessed by independent assessment agencies and the real contract price of the real estate does not take into consideration by authorities.
- In case they are highly qualified specialists in the spheres of economy, industry, defense, science, culture, sports, etc.;
- Special category of professionals invited by individuals and legal entities for the purposes of specified by the executive body
- In case they are family members of foreigners and stateless persons temporarily or permanently residing on the territory of the Republic of Azerbaijan;
- In case they hold positions of head or deputy head in the branch or representation of a foreign legal entity in the Republic of Azerbaijan;
- In case they hold positions of head or deputy head in the legal entity established in the Republic of Azerbaijan with at least one shareholder is a foreign individual or foreign legal entity
- In case they engage in entrepreneurship activity in the Republic of Azerbaijan; This is only considered as a ground for issuance of a permit for temporary residence in the territory of the Republic of Azerbaijan, when those persons work actually by concluding labor contract with at least 5 persons on full time employment or 10 persons on part-time employment. In this case, at least 80 percent of the workers are required to be the citizens of the Republic of Azerbaijan.
- In case they obtain work permit in a way envisaged by this Code to carry out paid labor activity on the territory of the Republic of Azerbaijan;
- In case they get full-time education at institutions of higher education and technical schools and in case they get education at secondary schools in the Republic of Azerbaijan;
- In case they are engaged in professional religious activity at officially registered religious institutions;
- In case there are grounds envisaged by the international agreements of the Republic of Azerbaijan.
No, Azerbaijan is member of the Council of Europe, but not the EU yet.
During negotiations, it is necessary to carefully approach difficult suppliers. Consideration should be given to the circumstances when choosing negotiation methods. As more suppliers are available as alternatives, this allows the purchasing department to use more “tough” negotiating tactics. Fewer available alternatives will require the purchasing department to use more “selling” persuasion methods.
Even in the most tactical purchasing roles, the buyer must be able to visualize the purchasing process from start to finish. Each of these nine steps in the tactical buying process must be known inside and out:
- Determination of the need
- Communicating the need
- Analyzing the need
- Search for potential suppliers
- Conducting bidding and / or negotiations
- Choosing a supplier
- Formalization of the obligation
- After
- Completion of the transaction
Income tax for employees in non-oil private industries is 0% where the monthly salary is below 8 000 AZN
No such requirement is specified.
Yes, a company may be owned 100% by a foreign individual person or company. There is no requirement to have a mandatory local shareholder, local director or any local partner in Azerbaijan.
VAT reports are submitted monthly.
Agency for Agrarian Credit and Development under the Ministry of Agriculture, Mortgage and Guarantee Fund, State Fund for the Development of Information Technologies
