Doing Business in Azerbaijan 2009 - Azerbaijan Export ...

on cars, buses and trucks depending on seat number, days spent in
Azerbaijan and number of other conditions (e.g. $15 - $25 per day
for buses, etc.)
Simplified Tax
This tax is intended to ease tax burden for small size businesses
and is in lieu of general profit tax. Simplified tax is charged at the
following rates on the gross revenue of the taxpayers:
• 4% for taxpayers operating in Baku
• 2% for taxpayers operating in other regions of Azerbaijan and
Nakhchivan Autonomous Republic
In order to quality for this tax, the total revenue should not exceed
22,500 Azerbaijan manats (approximately USD 28,125 at the
current exchange rate) in a preceding three month period. The
payers of the simplified tax are also exempt from VAT, profits tax
and property tax. Simplified tax is payable on a quarterly basis.
Dividend Withholding Tax
Dividend withholding tax of 10% applies to both domestic and
foreign shareholders. Tax is withheld in the currency in which the
dividend is paid. Double Taxation Treaties (“DTT”) may reduce the
rate at which dividend tax applies. See Annex 4 for brief
information about DTTs in Azerbaijan.
Other Withholding Taxes
Foreign legal entities with no permanent presence (permanent
establishment) in Azerbaijan are subject to withholding tax on
income derived from sources in Azerbaijan at the following rates.
• 10% Interest
• 14% Rent and Royalty
• 6% Freight income
• 6% Telecommunication services
BUSINESS CLIMATE
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