Doing Business in Azerbaijan 2009 - Azerbaijan Export ...

60 DOING BUSINESS IN AZERBAIJAN
The Civil Code 2000 contains general provisions regarding financial
reporting and audit requirements for legal entities. Joint stock
companies and Limited liability companies are required to use
independent auditor to audit their annual financials. Similarly,
Joint-stock companies are required to publish their annual
accounting reports and balance sheets. Any legal entity with the
value of balance sheet exceeding 1 million AZN (1.19 million USD)
or annual revenues exceeding 500 thousand AZN (595 thousand
USD) is required to conduct an audit of its balance-sheet. Legal
entities with balance-sheet value of below 1 million AZN or annual
revenues below 500 thousand AZN are permitted to prepare a
simplified balance sheet.
Tax Code 2000 also contains certain provisions dealing with
accounting matters, such as depreciation. Depreciation is made in
accordance with a declining balance method and the following
rates apply to these selected categories of assets:
• Buildings, facilities and installations—up to 7%;
• Machines, equipment and computers—up to 25%;
• Vehicles—up to 25%;
• Intangible assets—up to 10% when life time is not defined or in
accordance with life time when life time is defined;
• Other fixed assets—up to 20%.
Actual capital expenditures for production purposes made in a
current tax year in form of buildings, facilities, installations,
machines, equipment, computers vehicles and other assets may be
depreciated at a rate of up to 2 times of standard rates, i.e.
depreciated in an accelerated manner. A similar accelerated
depreciation rate was also recently introduced for leased
equipment in order to stimulate this leasing financial service.