The double taxation agreement between Azerbaijan and Switzerland is a legal convention that ensures residents and businesses do not pay tax on the same income in both countries. Signed between the Government of Azerbaijan and the Swiss Federal Council, this agreement covers taxes on income and capital, promoting fair taxation and encouraging bilateral investment.
What Is Covered Under the Agreement?
This agreement applies to individuals and companies who are tax residents of either Azerbaijan or Switzerland. It includes various types of taxes:
- In Azerbaijan: profit tax, income tax, property tax, and land tax.
- In Switzerland: federal, cantonal, and communal income and wealth taxes.
Key Benefits of the Azerbaijan-Switzerland DTA
The convention is designed to create a stable and fair tax environment for cross-border economic activity. Main benefits include:
- Avoiding double taxation on income such as dividends, interest, and royalties.
- Ensuring tax transparency between authorities to prevent tax evasion.
- Allocating taxing rights based on the taxpayer’s residency and income source.
- Encouraging business and investment between Azerbaijan and Switzerland.
Who Can Benefit?
The agreement is relevant for:
- Swiss companies investing in Azerbaijan
- Azerbaijani professionals earning income from Switzerland
- Foreign-owned businesses operating in both countries
How Tax Is Applied
Taxes are generally paid in the country where the income arises, but credits or exemptions are granted in the country of residence to avoid double taxation. Specific limits are also applied:
| Income Type | Maximum Tax Rate | Taxed In |
|---|---|---|
| Dividends | 5% or 15% | Country of source |
| Interest | 0% or 10% | Country of source |
| Royalties | 5% or 10% | Country of source |
What ACON Consulting Offer?
Our legal experts at ACON Consulting guide businesses, investors, and individuals in applying DTA provisions correctly to avoid tax duplication. We help you:
- Determine your tax residency
- Apply for reduced withholding tax
- Prepare necessary declarations and forms
- Resolve disputes through competent authority procedures
Contact Us
Whether you’re planning to invest, do business, or work between Azerbaijan and Switzerland, our team ensures you benefit fully from the tax treaty. Contact ACON Consulting today for legal and tax support tailored to your needs.
Get Professional Help
📞 +994 50 990 15 99 | ✉️ info@acon.az
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