Paying Taxes

• Why does Paying Taxes matter?
• What does it measure – and what does it not?
• Main findings and good practices in DB2019
• Paying Taxes in Azerbaijan

Paying Taxes in Azerbaijan - Overview

Paying Taxes in Azerbaijan – list of taxes

Tax	Payments (number)	Payments required by law (number)	Notes	Time (hours)	Statutory tax rate	Tax base	Total tax rate (% of profit)
Value added tax (VAT)	1	12	online filing	44	18%	goods and services
Property Tax	1	4	online filing		1%	Annual average tax written down value of Fixed Assets	2.00%
Land tax	1	2	online filing		AZN 10	land area per 100 square meters	0.0%
Social security contributions	1	12	online filing	65	22%	gross salaries	24.82%
Corporate income tax	1	4	online filing	50	20%	taxable profit	13.96%
Tax on interest	0	0			10%	interest income	0.26%
Fuel tax	1	0				included in price of fuel
Employee paid - Social security	0	12	paid jointly		3.0%	gross salaries
Employee paid - labor tax	0	12	paid jointly		14%-25%	gross salaries
Total	6	58		159			40.8%

Paying Taxes in Azerbaijan – Postfiling index

Numbers of tax payments in comparison
Time (hours) in comparaison
Total tax and contribution rate (% of profits)
Postfiling index (0-100) in comparison

Reforms in Azerbaijan over the years

DB2008
Introduction of online filing and payment
Extension of online payment and filing systems, and introduction on advanced accounting software.
DB2009
DB2011
Lowering several taxes, simplification in CIT and VAT payments.
Introduction of online electronic systems for filing and paying social security contributions.
DB2015
Vehicle tax for residents was abolished
DB2017
DB2019
Azerbaijan made paying taxes easier by introducing electronic invoicing (e-invoicing) and a unified tax return for social security contributions and enhancing the online platform for filing corporate income tax..
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