The decree issued by the President of the Republic of Azerbaijan on March 19, 2025, heralded the commencement of Azerbaijan’s Artificial Intelligence Strategy for 2025-2028. By this, Azerbaijan has introduced its Artificial Intelligence (AI) Strategy with the goal of transforming its digital economy and strengthening its position in the global AI market. The strategy focuses on several key areas, including AI education, research, a clear legal framework, public-private collaboration, and increasing public awareness of AI’s potential. These efforts aim to position Azerbaijan as a leading...

On the Approval of the “Rules for Calculating Market Shares in the Relevant Market, Defining the Product and Geographic Boundaries, Volume, Structure, and Participants of the Relevant Market”. Guided by the eighth paragraph of Article 119 of the Constitution of the Republic of Azerbaijan and in accordance with the implementation of the Law No.1051-VIQ dated December 8, 2023, “On the Approval, Entry into Force, and Legal Regulation of the Competition Code of the Republic of Azerbaijan”, as well as the execution of subparagraph 2.4.4 of the Presidential Decree No. 2451...

The Milli Majlis has approved the creation of the “e-accounting” information system in its final reading. The draft amendment to the “Accounting Law” was reviewed during the plenary session of parliament in its third reading. According to the proposed law, the relevant executive authority, as designated by the government, will ensure the following through the “e-accounting” system: The electronic submission of financial statements by accounting entities to the designated authority, in compliance with the requirements of the law, will be carried...

As it is known, taxes are a mandatory, individual, and non-refundable payment transferred to the state and local budgets in the form of the alienation of monetary assets owned by taxpayers for the purpose of financial support for the activities of the state and municipalities. Unless otherwise specified in the Tax Code, this is the only situation foreseen. It is also worth noting that the payment of taxes and other state fees is defined as one of the main duties in the country’s constitution. Furthermore, the state applies certain exemptions or reductions for taxes and other payments...

The tax team of Unified Tax and Technology Businesses has prepared the Transfer Pricing Guideline 2025 version for you. What is Transfer Pricing? Transfer pricing refers to the pricing determined for transactions conducted between related parties (as stated in Article 14-1.2 of the Tax Code). These prices should align with those established in comparable transactions conducted under similar conditions between independent parties. In other words, transfer pricing applies to transactions (e.g., sale of goods or provision of services) between related parties. The price used should match...

The Unified Tax and Technology Businesses team is delighted to share the 2025 Tax Changes Bulletin. It provides detailed explanations of the key updates, complete with comparisons and practical examples. DOWNLOAD PDF

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,...