Tax System and Tax Regimes in Azerbaijan

Tax system

The Tax Code of the Azerbaijan Republic is the main document which regulates the tax system in Azerbaijan. The Tax Code also refers to other pieces of legislation which should be considered for taxation purposes. 

Tax regimes

1.        General tax regime is based on the Tax Code and applicable to all taxpayers, except as otherwise provided in Article 2 of the Tax Code. The Tax Code also considers tax incentives and exemptions for residents of de-occupied territories, technology parks located in various parts of Azerbaijan and micro and small businesses. 


2.       PSA and HGA tax regime considers taxation of operating companies, contractor parties and foreign (mainly) subcontractors working based on production sharing agreements for various oil and gas, as well as gold fields, and host government agreements for transportation of natural gas through various pipeline systems.


3.       Tax regime of Alat Free Economic Zone is regulated by the Law on “Alat Free Economic Zone”.

Some Tax Code Concepts