News

Several resolutions by the Cabinet of Ministers of the Republic of Azerbaijan have been amended following changes to the Tax Code of the Republic of Azerbaijan.

We are pleased to outline below a summary of the main amendments:

• Amendments were made to the list of documents regarding classification of persons eligible for exemptions to determine the right of persons for tax allowances upon calculating wage taxes,
• In Resolution No. 85, issued by the Cabinet of Ministers of the Republic of Azerbaijan on 29 May 2007, the excise rate for buses, motorcycles besides automobiles have been established at 0 (zero) AZN per cubic centimeter of engine capacity.
• The forms of the electronic invoice for received advance payments; the electronic invoice for the provision of goods, works, and services; and the electronic invoice submitted by an agent (commissioner) to a buyer (subagent) for goods (works and services) have been approved.
• The resolution No. 55 of the Cabinet of Ministers of the Republic of Azerbaijan, dated March 1, 2001 "On Approval of the Rules of Calculation of Profit (Income) when it is not possible to determine the profit (income) of the taxpayer directly" has been repealed.

As already known, according to the latest amendments to the Tax Code, a new Article 67.3-1 has been added. According to this article, if the taxpayer does not provide official documentation of taxable income but relevant information on deductible expenses is available, the taxable profit (income) is calculated using a profitability rate of 50 percent.

The guidelines for a taxpayer's access to the information of other taxpayers held by tax authorities have been approved (Resolution No. 365 of the Cabinet of Ministers, dated 30 July 2024)

These guidelines have been prepared in accordance with Article 15.1.15-4 of the Tax Code and outline the procedure for a taxpayer to access information held by the tax authority on other taxpayers who provide them with goods/works/services.

Upon request by a taxpayer, the tax authority may disclose the following information about the counterparty:

• Date of registration;
• Information related to an entity (object) (name of an entity (object), activity status, area and registration code);
• Main and additional types of activities;
• Whether the taxpayer is classified as risky;
• Outstanding obligations for taxes, mandatory state social insurance, unemployment insurance, compulsory medical insurance, including debts on interest and financial sanctions;
• Turnover data (for the requested period but not exceeding 3 years);
• the value of import and export operations carried out within the last 24 months;
• the number of employees and the declared average monthly salary as of the current date.

The information must be confirmed by the disclosed counterparty within 2 (two) working days using an enhanced electronic signature with advanced certification. If the counterparty does not confirm the request within 3 (three) working days, the request will be cancelled automatically.