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Moldova Moldova Moldova Moldova Moldova

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)


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

Thin Capitalization Rule N/A
Depreciation (under reducing-balance depreciation)                       
  • Accelerated depreciation (for certain assets)



Transfer Pricing Rules                                   

Methods: Comparable Uncontrolled Prices (CUP); Resale Price; Cost plus
Loss carried forward
Loss carried backward

5 years

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  

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           
Some transactions are exempt (e.g. financial services)

18% / 0 %
Property taxation

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%

On alcohol; tobacco products; oil products; light vehicles; leisure / sports yachts and other floating transports

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

Special (simplified) tax regime
Available for small businesses / individual entrepreneurs with taxable supplies
up to 150000 AZN/90000 AZN:
  • Baku city
  • other regions

2% (gross income)

Advance (binding) tax rulings N/A
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