Azerbaijan tax news 2025
February 20251. Reduction of Branch Profit Tax:
Significant decrease: The tax rate on the net profit of a branch or permanent establishment in Azerbaijan transferred to a non-resident parent company has been reduced to 5%. This is a substantial decrease and could incentivize foreign companies to operate in Azerbaijan through branches.
2. Amendments to the Tax Code:
Various changes: Several amendments to the Azerbaijan Tax Code were approved on December 27, 2024, with most taking effect from January 1, 2025. These amendments cover a range of areas, including: Taxpayer duties: Potential new duties for taxpayers.
Personal income tax exemptions: Expanded exemptions, possibly for certain micro-businesses.
Corporate income tax concessions: Concessions for specific projects, like those in energy or high technology parks.
VAT exemptions: Additional exemptions for certain goods or services.
Tax control and audits: Changes to the powers of tax authorities in these areas.
Sanctions: Increased sanctions for non-compliance, such as for transfer pricing reports.
3. Focus on Oil and Gas Sector:
Profit tax expectations: The Azerbaijani government anticipates significant profit tax revenue from oil and gas companies developing major fields like Shah Deniz and ACG in 2025. This highlights the importance of the energy sector to Azerbaijan's tax revenue.
4. Other Potential Updates:
Keep an eye out: As the year progresses, there may be further tax-related news and updates.
It's advisable to stay informed about any new regulations or changes to existing ones.
Where to Find More Information:
Official sources: The website of the Ministry of Taxes of Azerbaijan would be a primary source for official announcements.
Tax and legal firms: Consulting firms like PwC Azerbaijan often publish updates and analyses on tax law changes.
News agencies: Keep track of news from reputable sources that cover economic and tax developments in Azerbaijan. Important Note:
This information is based on current knowledge.
Tax laws and regulations can be subject to change.
Always consult with a qualified tax professional for specific advice related to your situation.
Personal Income Tax Rate in Azerbaijan 2023
January 2023Personal Income Tax Rate in Azerbaijan remained unchanged at 25 % in 2023.
The maximum rate was 35 % and minimum was 25%.
Azerbaijan New Lawer Profit Tax
January 2010From 1.1.2010 the new corporate profit tax in Azerbaijan is 20%, compared to the previous 22% rate.
The 18%V.A.T. rate remains unchanged.
Azerbaijan Reduced Profit Tax Rate
May 2009The Azerbaijan government proposed a reduction of the corporate profit tax, from the current 22% to 20%, effective from 1.01.2010.
The government also announced in December 2008 to reduce the V.A.T. rate from 18% to 17%.
The amendments have to be approved by the Azerbaijan parliment.
Note: The information in this site is for general guidance only. Users of this site are advised to take professional advice before taking practical tax decisions.
Please read our terms of service before entering this site.