[1] The Tax Code of Azerbaijan Republic was approved on 11 July 2000 and consists of two parts.
The second part, also referred to as Special Section, defines specific taxes and their bases, rates, payment schedules and procedures.
[6] The statutory tax regime is applicable to all companies operating in Azerbaijan, except for those, who are involved into oil and gas industry.
The regime related to Production Sharing Agreements covers the rules for more than twenty existing PSAs.
The rules related to Baku-Tbilisi-Ceyhan oil export and South Caucasus pipelines are covered by Host Government Agreements tax regime.
Natural persons who have stayed in Azerbaijan 182 days in a calendar year are accounted as residents and are responsible for paying the taxes.
All works, goods, services provided and taxable imports constitute the base for taxation.
There also exists zero (0) rate VAT in the country for the issues related with financial aids, diplomacy, cargo and valuable goods.
Taxable base of property tax for physical persons are the value of buildings and their parts, any water and air transportation or facility.
These taxes are paid by physical entities and enterprises which extract mineral resources from the territory of Azerbaijan Republic, including area of Caspian Sea which belongs to the country.
Simplified tax is applicable to entities, whose volume of transactions does not exceed 200.000 AZN in 12 consecutive months.
Gross volume of revenue received in respect of goods and services provided is subject to taxation.