Doing Business in Azerbaijan 2009 - Azerbaijan Export ...

200 DOING BUSINESS IN AZERBAIJAN
Annex 5: Summary of some of characteristics relating to Azerbaijani taxes.
Rate Payers Taxable Base Exemptions
Profit Tax generally - 22%, All enterprises (resident and non- Difference between income and • profit of charity organizations
since 01.01.2010 - 20%
resident). Resident enterprises are deductible expenses. In case of a (except from entrepreneurial
subject to tax on its total profit. PE gross income generated from activity);
Non-resident enterprises operating Azerbaijani sources through a • grants, membership fees and
in Azerbaijan through permanent PE less the amount of expenses donations received by non-
establishments (‘PE’) are subject to incurred with respect to such commercial organizations;
tax on profit from such operations. income.
• income of international,
interstate and intergovernmental
organizations (except from
entrepreneurial activity) etc.
Income tax of employees. Enterprises or entrepreneurs Any salaries, payments or benefits • Income of diplomats or consular
Sliding scale (14% - 35%) making payments to employees. received by an employee in respect employees who are not citizen of
Payments made by the PE of of employment.
Azerbaijan;
non-residents are treated the
• employment income of a person
same as the payments of resident
who is not a citizen of Azerbaijan,
enterprises.
whose stay in Azerbaijan during
the tax year (the same as the
calendar year) is less than 182
days - if this income is paid by
an employer or in the name of an
employer who is not a resident
of Azerbaijan and is not paid by
or on behalf of a PE of a nonresident;
• gifts, material aid and
inheritance up to certain limits;
• compensation for damage caused
etc.