AZERBAIJANFINA |
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Recommended by Best Lawyers® and Who'sWhoLegal |
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Chambers Global |
14 Kerpich str.#1
Baku, AZ1022
Tel: +994 (12) 444-6110
Fax: +994 (12) 444-6112
| Corporate income taxation | |
|---|---|
| Corporate Tax | 20% |
| Dividends | 10% |
| Participation Exemption | N/A |
Capital gains (taxed at general rate) |
20% |
Deduction of Interests Cannot exceed the expense calculated using an interest rate of 125% of the inter-bank credit auction rate set forth by the CB of Azerbaijan |
Yes |
| Thin Capitalization Rule | N/A |
Depreciation (under reducing-balance depreciation)
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7%/10%20%/25% Yes |
Transfer Pricing Rules Methods: Comparable Uncontrolled Prices (CUP); Resale Price; Cost plus |
Yes |
| Loss carried forward Loss carried backward |
5 years N/A |
| Fiscal unity/Tax consolidation | N/A |
| Withholding taxation | |
| Withholding tax rate for dividends | 10% |
| Interests | 10% |
| Royalties | 14% |
| Branch remittance tax | 10% |
| Transportation and communication services fee | 6% |
| Insurance payments | 4% |
Double Tax Treaty Network (40 DTTs): reduction /elimination of WTH taxation |
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| Personal Income tax | |
| Individual entrepreneurs | 20% |
| General rate (up to 2000 AZN) | 14% |
| Rate (above 2000 AZN) | 280 AZN +30% |
| Dividends | 10% |
| Inheritance tax | N/A |
| Real Estate Transfer Taxes / Duty | N/A |
| Value Added Tax | |
Standard / reduced rate |
18% / 0 % |
| Property taxation | |
| Corporations | 1 % of the average annual residual value of fixed assets |
| Individuals (depends on type of assets) | |
| Tax on Land (depends on its location and usage) | |
| Severance Tax | |
| Crude oil | 26% |
| Natural gas | 20% |
| Mining natural resources - all types of metals | 3% |
| Excises | |
On alcohol; tobacco products; oil products; light vehicles; leisure / sports yachts and other floating transports |
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| Social Security Contributions | |
| Paid by the employer on gross payroll | 20% |
| Withheld from the employee's gross salary | 3% |
| Incentives for Investors | |
General incentives for investors |
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| Special (simplified) tax regime | |
| Available for small businesses / individual entrepreneurs with taxable supplies up to 150000 AZN/90000 AZN:
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| Advance (binding) tax rulings | N/A |