Want to setup a company? This will tell you about tax laws in Azerbaijan, this article will educate you on the tax laws for a which is the most common company structure in Azerbaijan.

Azerbaijan has a tax on foreign earned income earned outside the borders separately then it it was earned inside the country. The prevailing rate for offshore income, from our research, and your results may vary, is 20-21.25%37%. The country does not have known exemptions to transfer in foreign earned profits earned outside the borders. Taxes are quite low in Azerbaijan because the effective rate of taxation on an entity is 20%. This ranks Azerbaijan as 63rd overall in terms of corp. taxation rate internationally. . .

The VAT rate in AZ is 18.00%, that ranks Azerbaijan as 63rd when compared to VAT taxation rate internationally. In terms of other taxation, an employer will contribute 25.00% to the equivalent of a social security fund and an employee will contribute 3.00%. The overall complexity of the tax system is medium. This is measured by average time to comply with a country's labor tax requirements is as it is 78hours. Contributing to this is the number of yearly labor tax payments, which is 1 in AZ.

Thin capitalization restrictions aren't in play. This refers to any sort of laws on given company with respect todebt-to-asset ratios. A dividend is distributions of an earnings of the legal entity, voted on by the board of directors, to shareholders.Dividends can be issued as cash payments, shares of stock, or other property. The capital gains taxation rate in AZis 0%. A capital gains tax is levied on the profits that a corporation or natural person realizes when they sell sells a capital asset for a price that is higher than the purchase price.

The interest witholding rate is estimated at 10%This means that the tax authorities expects to automatically withhold 10% of payments offshore for for interest payments. The dividends witholding rate is 10%Which means that the relevant tax authorities expects 's to automatically withhold 10% of money remitted abroad on dividend payments. The royalties witholding rate 14% Which means that the taxman expects legal entities to withold 14% of money remitted abroad for royalty payments.
There is no known tax on wealth in Azerbaijan. There are no known inheritance taxes in Azerbaijan. We are not aware of any popular and well known research and development breaks on taxation in this country.

The above is not tax or legal advice for your particular circumstances. We can to point you to a lawyerin Azerbaijan who can get you an answer. Ready to get started? Click the free consultation button above.