|Taxes in Azerbaijan||
tax (VAT) is 18% for all categories. Prices of alcohol, both
imported and domestic, include the VAT. There are no taxes on domestic
food, but there are taxes on all imported goods in legally operated
stores. In most shops with imported goods, VAT on food is already
added to the price. Only diplomats are exempt from VAT in stores.
Import duties on most items range from 10% to 50% ad valorem. Export tariffs are levied on most good. An export duty of 70% is levied on oil and oil products, several metals, cotton and ... caviar. Goods produced by foreign investors in Azerbaijan are exempt from export duty.
A new tax code became effective in 2001, but tax laws are still ambiguous, leaving the tax police wide latitude for interpretation. Local inspectors are not always aware of special provisions. Oil consortia under the PSAs are subject to a separate regime defined in the tax article of a given PSA and negotiated tax protocols defining the procedures for filing and payment. These regimes apply to the operating companies, the contractor parties and also address subcontractors.
Summary of taxes:
- Corporate profit tax: 27%
- Dividend withholding tax (for dividends transferred out of Azerbaijan): 15%
- Taxes on management fees and lease payments: 20%
- Tax on interest: 15%
- Freight revenue tax: 6%
- Property tax: 0.5%
- Personal income tax: graduated 12 - 35 % (foreigners physically present in Azerbaijan for 183 days or more in a calendar year are considered permanent residents and subject to Azerbaijani income taxes in the entire world-wide income)
- VAT: 20%
- Land: 3.000 - 186.000 AZM / hectare
- Road tax: 0.03 %
- Vehicle registration: 2% + annual tax based on engine size
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|A to Z of Azerbaijan / A dan Z ye Azerbaycan||