Tax and Accounting Services in Azerbaijan

18 October 2023by info@acon.az

Comprehensive Tax and Accounting Services in Azerbaijan

In the ever-evolving landscape of Azerbaijani tax legislation, businesses are embracing the digital age. The recent tax reforms in Azerbaijan have paved the way for an era of cashless transactions and heightened transparency. As these transformations continue to shape the economic landscape, businesses are increasingly seeking expert guidance on Tax and Accounting Services in Azerbaijan to ensure their financial success.

The Azerbaijani Tax Code: Your Roadmap to Compliance

The Azerbaijani Tax Code, in effect since January 1, 2001, serves as the backbone of tax regulation in the country. It stands as the primary law governing all tax-related matters, taking precedence over other regulations. Under its purview, the Azerbaijani government imposes various taxes, each with its own unique considerations:

  • Corporate Tax: Set at a standard rate of 20%, with a reduced rate of 5% for micro-businesses. Non-resident withholding taxes are fixed at 10%.
  • Personal Income Tax: Varied, with rates ranging from 14% to 25%.
  • Value Added Tax (VAT): Generally, it stands at 18%, though specific goods and services may be subject to 0% VAT.
  • Excises: These are applied to certain goods, such as alcoholic beverages and cigarettes.
  • Property Tax for Legal Entities (Companies): Calculated at 1% of the asset value annually.
  • Land Tax: Variable rates depending on land location and type. For instance, industrial lands in Baku incur a tax of 10 manats per square meter for areas under 10,000 square meters, and 20 manats for larger plots.
  • Road Tax (Vehicle Tax): This applies to vehicles entering or exiting Azerbaijan, as well as imported petrol, diesel, and liquid gas.
  • Mining Tax: Diverse rates apply, such as 26% for oil and gas for 20%.
  • Simplified Tax: Imposed on smaller businesses with annual revenues below 200,000 manats without VAT registration (2%), public catering services (8%), and construction and transportation businesses (with varying rates).
Recent amendments to the Tax Code have introduced several improvements:
  • including additional tax exemptions for small businesses
  • reduced tax rates
  • the exclusion of private non-oil industry employee salary taxation
  • and enhanced transparency in tax procedures and audits.
Tax Services Redefined

In our Azerbaijani tax consultancy, we diligently ensure your business complies with tax and customs laws while optimizing benefits. Import and export operations in Azerbaijan are rigorously overseen by the Customs Code, necessitating not only legal tax and customs advice but also practical solutions.

Our team of dedicated tax lawyers and experts, backed by a roster of skilled accountants, offers a complete spectrum of tax consultancy and accounting services in Azerbaijan. This comprehensive approach caters to both multinational corporations operating in Baku and local businesses with international ties.

Exceptional Tax Consultation

Our accomplished team boasts extensive experience in taxation matters, with practical insights garnered from leading the Tax Law Development unit at the Ministry of Taxes. We specialize in international taxation, encompassing issues like double taxation and transfer pricing regulations. As the designated Tax Reporter from Azerbaijan by the International Bar Association, we consistently provide timely tax updates to our clients. Besides, we also provide proposing legislative enhancements based on international best practices.

Our tax services encompass:
  1. Tax advisory and strategic tax planning.
  2. Assistance in structuring, reorganizing, and optimizing tax obligations.
  3. Consultation on double taxation, including the prevention of juridical and economic double taxation, as well as tax credit acquisition and refund claims stemming from double taxation treaties.
  4. Expertise in withholding taxes in Azerbaijan.
  5. VAT consultancy for both residents and non-residents.
  6. Comprehensive transfer pricing solutions and consultation for multinational enterprises in Azerbaijan and local businesses with global reach.
  7. Acquisition of special taxation regimes and tax incentives for donations, sponsorships, and investments.
  8. Securing tax benefits and incentives through negotiations with state and local authorities.
  9. Crafting opinion letters on tax crime implications of transactions and other tax-related matters.
  10. Conducting thorough audits of a company’s tax compliance and offering recommendations.
  11. Providing tax law solutions for intricate business transactions, especially those involving multiple parties and cross-border elements.
  12. Resolving tax disputes and litigation with the invaluable support of our seasoned tax lawyers and attorneys.
A Robust Suite of Accounting and Payroll Services

Our holistic approach to client services extends to providing complete accounting, taxation, payroll, and HR solutions. In contrast to typical Azerbaijani firms, we provide full tax and corporate law support for a comprehensive analysis of complex tax issues. Our accomplished team comprises accountants, HR professionals, and tax lawyers/consultants.

Our array of accounting and payroll services includes:
  • Comprehensive accounting services that accommodate specific software or financial reporting requirements.
  • Efficient payroll and outsourcing services, encompassing salary disbursement and employee registration.
  • Human resources support, including the drafting of employment agreements, employee registration, and documentation of HR-related processes (sick leave, annual leave, business trips, and more).
  • Robust bookkeeping and statutory reporting services.
  • Acting as a liaison for banking matters, resolving all banking transactions, and representing clients before financial institutions.
  • A host of other accounting and payroll-related services and assistance.
In summary

Our dedicated team is ready to guide your business through the intricate landscape of tax and accounting services in Azerbaijan. We are committed to ensuring your compliance with tax regulations, maximizing your tax benefits, and offering expert financial advice. Contact us, and experience the difference in tax and accounting excellence that only our professional law firm can provide in Azerbaijan.

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Reach out or visit our office to access ACON's exceptional services for your needs.

AZ1025, Azure Business Center, Office 165B, Baku, Azerbaijan
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ACONOffice
Reach out or visit our office to access ACON's exceptional services for your needs.
AZ1025, Azure Business Center, Office 165B, Baku, Azerbaijan
OUR LOCATIONSWhere to find us?
Law firm in Azerbaijan Footer Map
GET IN TOUCHACON Social links
Follow us on social media to stay updated and connected with ACON!
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