In this brief article, I would like to touch upon the key points to consider when applying for a certificate of exemption from import-export taxes, as issued by the State Customs Committee of Azerbaijan Republic, in cases determined by international agreements to which Azerbaijan is a party. Although the process might initially appear straightforward, knowing what challenges may arise in the subsequent stages after the application can make everything more efficient and quicker. As is well known, the issuance of the aforementioned certificate is crucial for companies participating in Production...

The Cabinet of Ministers has adopted a decision to amend the “Criteria for Risky Taxpayers and Risky Transactions,” approved on July 28, 2020. The new version, titled “Criteria for Taxpayer Risk, Rules, and Conditions for Including and Removing a Taxpayer from the List of Risky Taxpayers”, has been prepared in accordance with Article 13.2.82 of the Tax Code. This regulation defines the criteria for taxpayer risk, the procedures, and the conditions for inclusion in and removal from the list of risky taxpayers. Definition of a Risky Taxpayer (Article 13.2.82):A risky taxpayer...

Approved by Decision No. 492, dated November 22, 2024, signed by the Prime Minister of the Republic of Azerbaijan, Ali Asadov. The “Standards and Procedures for Deducting Representation Expenses, Employee Housing and Meal Expenses, as well as Expenses Related to Preventive and Treatment Meals, Milk, and Equivalent Products for Workers in Hazardous and Underground Work Conditions from Income for Taxation Purposes” have been adopted. Firstly, it should be noted that these rules were prepared based on Article 119.2 of the Tax Code of the Republic of Azerbaijan. How are the respective...

The decision on the “Approval of the Rules for Business Trips for Employees” originally issued on January 18, 2012, has been amended. In response to these changes, the Chairman of the Collegium of the Ministry of Finance, Minister Samir Sharifov, has signed a new decision. Under the original rules from January 18, 2012, the inviting party within the country was required to allocate 30% of the established daily rate for daily expenses (covering meals, communication, local transportation, and other services), and 70% for accommodation costs (applicable for each calendar day of the...

An amendment to Article 164.1.41-2 of the Tax Code of the Republic of Azerbaijan has extended the VAT exemption on electric vehicle chargers: Scope of Exemption: Import and sale of second-level and third-level electric energy chargers for electric vehicles. Updated Duration: The VAT exemption, effective from 2022, will now apply for 5 years instead of the previous 3 years. This change will increase the demand and purchases of electric cars as suppliers will not have to bear VAT of 18%. Moreover, this will also increase the number of electric charging points for such cars. In 2021,...

Taxpayers engaged in freight transportation were previously not required to pay taxes, mandatory state social insurance, and compulsory health insurance fees for obtaining a “Distinguishing Mark.” These obligations were fulfilled by such individuals in accordance with the law. This provision was part of paragraph 4 of Article 221.4.7, which has now been removed.  Such taxpayers will bear:  State social insurance burden of 3% of amount below and equal to 200 AZN ( 6 AZN + 10% of amount above 200 AZN) for employees and 22% below and equal to 200 AZN ( 44 AZN + 15% of amount above...

Decision of the Cabinet of Ministers of the Republic of Azerbaijan on Determining the Stages for Transitioning Employment Contracts to Electronic Document Format by Employers were signed and published on September 17th, 2024. The decision provides a precise framework for employers regarding the implementation and transition of employment contracts to electronic document format. It outlines the specific timelines and categories of employers required to comply with this transition, ensuring clarity and accountability in the process. Employers are mandated to adhere to the stipulated deadlines...

Pursuant to Paragraph 8 of Article 119 of the Constitution of the Republic of Azerbaijan and for the purpose of optimizing the refund process of overpaid taxes, mandatory state social insurance, unemployment insurance, and compulsory health insurance payments, as well as addressing the issues and inconsistencies arising in this field, the Cabinet of Ministers of the Republic of Azerbaijan has issued the following decision: The following rules under the “Rules for the Refund of Overpaid Taxes, Mandatory State Social Insurance, Unemployment Insurance, and Compulsory Health Insurance Payments,...

This decision was approved by the Cabinet of Ministers of the Republic of Azerbaijan with Decision No. 381, dated September 3, 2024. According to Articles 85.1 and 85.2 of the Tax Code, payment deadlines for each tax are defined. Any changes to these established payment deadlines can only be made according to the rules outlined in the Tax Code, and the taxpayer must pay interest if the deadlines for tax payments (including current tax payments) are violated, as per the rules and conditions defined in the Tax Code. Article 85.10:When the conditions stipulated in Article 85.6 of the Tax Code...

This decision was approved by Decision No. 383 of the Cabinet of Ministers of the Republic of Azerbaijan dated September 3, 2024. According to this decision, a list of over 90 fixed assets subject to leasing agreements that are exempt from VAT has been established. Based on Article 164 of the Tax Code of the Republic of Azerbaijan, titled “Exemption from Taxation,” specifically subsection 164.1, the following provisions can be highlighted: Article 164.1: Exemptions from VAT Aside from the export of goods, the following types of supply, work, services, and imports are exempt...

Have your company ever faced with the situation that an HR of your company trying to solve some issue regarding the behavior, performance, communication or misunderstanding among employees, or trying to implement some new changes in terms of staff, its hiring process, termination, promotion, etc. But coming to justify and be sure about the compliance of the process with the effective up to dated legislation, or to explain it to staff, some possible gaps appear. The reason for this, is surely not having a related HR policy that cover all details and instructions that prepared in compliance with...