STS Income Tax Brackets in Azerbaijan for 2024

Buoyed by a liberal investment climate, Azerbaijan has taken steps to ensure that its taxation system is harmonized and in line with many international standards. There are several categories of taxes levied including income tax, value-added tax, excise tax, capital gains tax, land tax, road tax, mining tax. The taxation system in Azerbaijan is administered by the official tax body, the State Tax Service (STS).

The Tax Code of the Republic of Azerbaijan provides guidance and support in the form of income tax tables for individuals and businesses. Taxpayers must familiarize themselves with these tax tables and the corresponding income tax brackets and income tax rates, for effective tax planning and to remain compliant with the tax laws of Azerbaijan.

Here you will learn about:

• headline tax rates
• personal income tax (PIT) brackets
• corporate income tax (CIT) rates
• capital gains tax (CGT) rates
• withholding tax rates for residents and non-residents
• value-added tax (VAT) rates

Headline Tax Rates in Azerbaijan

Personal Income Tax (PIT) Brackets in Azerbaijan for 2024

The income of individuals, which may be derived from business profit, salaries and wages, income from independent personal services or any rental income from property, is subject to personal income tax. Individuals may be either resident or non-resident in Azerbaijan. 

A non-resident taxpayer who operates through a permanent establishment (PE) in Azerbaijan pays tax on any taxable income related to the PE whereas a non-resident taxpayer who does not have a PE pays income tax on their gross income.

Personal Income Tax (PIT) Rates for Individuals in Non-Oil-Gas and Non-Government Sectors

Personal Income Tax (PIT) Rates for Individuals in Oil, Gas and Government Sectors

Personal Income Tax Due Dates

Corporate Income Tax (CIT) Rates in Azerbaijan for 2024

Corporate Income Tax Due Dates

Capital Gains Tax (CGT) in Azerbaijan

Withholding Tax Rates for Residents and Non-Residents in Azerbaijan

In general, withholding tax (WHT) is levied on residents and non-residents in Azerbaijan. Any income received from Azerbaijan sources not attributable to a PE of a non-resident in Azerbaijan is subject to WHT, including but not limited to dividends, interest, rental fees, royalties, and risk insurance or reinsurance payments.

However, as Azerbaijan is a signatory to certain double taxation treaties (DTTs), a taxpayer may benefit from the provisions of these DTTs. Consequently, the taxes above may be reduced or removed by a DTT in place.

Value-Added Tax Rates in Azerbaijan

Value-added tax (VAT) is levied on the supply of goods and services in Azerbaijan as well as the import of goods. However, in certain situations, zero rating may apply, including for the following:

• the export of goods and services
• the import of goods, the supply of goods and the implementation of works and provision of services to grant recipients on the expense of financial aid received from abroad
• supply of gold and other valuables to the Central Bank of Azerbaijan

investment of fixed assets in the form of shares in the charter fund of an enterprise