Study of Small and Medium Enterprises in Azerbaijan - IFC

Table 7.5 Main tax obligations of an IE and SME
Taxpayer Tax Tax Base Tax Rate
CPT
Gross annual worldwide income less
deductible expenses (in case of a nonresident
taxpayer, only income derived
from Azerbaijani source)
22 percent
SME
Corporate
Property Tax
On the average annual book value of
the fixed assets
1 percent
Withholding
Tax
Dividends, interest, and certain other
payments paid by, or due to such
entities
10 percent
Corporate
Land Tax
Lands owned or used in Azerbaijan
Depending on location, quality and size of
the land plot
IE
PIT
Individual
Property Tax
Taxable gross income (connected
with employment, entrepreneurial
or non-entrepreneurial activities) less
deductions allowed under the Tax
Code
On the book value of the fixed assets
Annual income:
Up to AZN 24,000 ($29,880): 14 percent
Above 24,000 p.a. ($29,880): AZN 3,360 +
35 percent on the amount exceeding AZN
24,000
Asset specific
Individual
Land Tax
Lands owned or used in Azerbaijan
Depending on location, quality, and size of
the land plot
SST
Gross income paid to employees
(salaries and other eligible remunerations),
starting 2006 gross income paid
to foreign employees also taken into
account for this purpose.
22 percent paid by an employer
3 percent withheld from an employee’s
salary
Both SME
& IE
VAT
Turnover of goods and services within
Azerbaijan, as well as importation of
goods
18 percent
Road Tax Vehicles owned or used in Azerbaijan Depending on the capacity of engine of a
vehicle.
Excise Tax
Mining Tax
Release of excisable goods from the
production site
Minerals extracted within the territory
of Azerbaijan
Goods specific
0.02 gapik – 26 percent of the wholesale
price of the minerals
Aze r b a i j a n Bu s i n e s s En a b l i n g En v i r o n m e n t Pr o j e c t 117