Doing Business in Azerbaijan 2009 - Azerbaijan Export ...

202 DOING BUSINESS IN AZERBAIJAN
Annex 5: Summary of some of characteristics relating to Azerbaijani taxes, continued from the previous page.
• facilities that are used for
environmental preservation,
fire protection or civil defence
purposes;
• pipelines carrying products, rail
and motorways, communication,
power transmission lines,
irrigation system facilities etc.
For the physical individuals
buildings owned by resident
and non-resident individuals in
the Republic of Azerbaijan, plus
watercraft and aircraft owned by
resident individuals, for the legal
entities carrying out business
activities in Azerbaijan through its
permanent establishment – annual
average value of only those fixed
assets which are related to the PE
All persons and legal entities
having assets (buildings or
their part, fixed assets etc.) in
ownership.
Assets Tax. Different rates depend
on type of assets.
0.1% of the property with the
values exceeding AZN 5,000—for
individuals. 1% of the value of fixed
assets - for legal entities; Other
rates are applicable for possession
of watercrafts and air crafts.
• Land plots of residential area of
common use;
• national border zones and land
designated for defence purposes
etc
Land plots granted for use or
ownership.
All persons owning or using land in
Azerbaijan.
Land Tax. Different rates depend
on location and type of land plots.
Commercial minerals extracted
from subsoil strata in the territory
of Azerbaijan (including Azerbaijan
sector of the Caspian Sea).
Mining Tax (Royalty) 3% - 26% All persons engaged in extraction
of commercial minerals from
subsoil strata (including Azerbaijan
sector of the Caspian Sea)
Vehicles that belong to foreign
states, or owned or used by
persons in the territory of the
Republic of Azerbaijan and enter
the territory of the Republic of
Azerbaijan
Non-resident enterprises and nonresident
individuals that own motor
vehicles that enter the territory of
Azerbaijan and use this territory
for passenger and cargo transport;
also persons owning or using
motorcars, buses or other motor
vehicles in Azerbaijan
Enterprises and individuals with a
quarterly turnover not exceeding
certain limit (currently 22,500
manats – around 28,125 USD)
Road Tax. Different rates
depending on type and capacity
of the vehicle, number of seats,
distance travelled etc.
• Exempt from payments of VAT,
assets and profit taxes.
Total proceeds realized by a
taxpayer from sale of goods or
services and from activities nonrelated
to sales.
Simplified System Tax 4% for
taxpayers operating in Baku and
2% for taxpayers operating in other
regions