General Taxes in Azerbaijan
A guide to taxes, excluding income tax, which must be paid by all residents of Azerbaijan...
Taxes in Azerbaijan are levied at both the state (national) and the municipal (local) level. An individual is considered to be resident for tax purposes if they have spent more than 182 days in the republic of Azerbaijan in a calendar year. The tax year is the same as the calendar year. People whose stay in the country, has lasted for less than 182 days have their residency status assessed in relation to the following criteria:
- Where they have a permanent place of residence
- Where they have vital interests
- Whether they are citizens of Azerbaijan
All residents are required to pay the following taxes:
Value Added Tax
Anyone who imports good or provides services in Azerbaijan is liable to pay VAT. The tax is levied at a rate of 18 percent. VAT is charged on all alcoholic products but not on domestic foodstuffs; all imported goods are subject to VAT.
Diplomats are exempt from paying VAT in shops.
Property tax must be paid on all buildings and personal property owned by both residents and non-residents in Azerbaijan. The tax is payable irrespective of whether the property is being used. The tax payable depends on the inventoried value of each property and is charged at a rate of 0.1 percent on properties whose value exceeds AZN5,000. A property's inventoried value is determined by the local municipality. Notifications of tax payable are sent out no later than 1 August each year. Half of the amount must be paid before 15 September, with the remainder being paid before 15 November.
Land Use Tax
Anybody who owns a plot of land in Azerbaijan is obliged to pay land tax. The rate and amount of tax payable depends on the size of the plot, what it is used for and where it is located. Payment notifications are issued each year before 1 August. The tax must be paid in equal portions before 15 August and 15 November.
All residents of the country who own and operate a vehicle are liable to pay road tax. The amount payable depends on the car's engine capacity. It must be paid by 31 March each year at the time of the vehicle's annual check-up.
- For information about road tax and how it is calculated: Click here (in Azerbaijani)
There is no stamp duty, wealth, gift or inheritance tax in Azerbaijan. Full details on taxation in the country can be found on the website of the Ministry of Taxes.
- CABC-global guide to taxes in Azerbaijan: Click here (PDF)
- Word Bank Doing Business page on taxation in Azerbaijan: Click here