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”.