Europe · Tax guide
Azerbaijan
Azerbaijan taxes company profits at 20%, charges VAT at 18% once turnover exceeds ₼200,000, and lets smaller businesses pay a 2% simplified tax. Taxes are administered by the State Tax Service.
At a glance
- Corporate profit tax
- 20%
- VAT
- 18%
- Simplified tax
- 2%
- Withholding on payments abroad
- 10%
Standard rate
Registration above ₼200,000
Of turnover, below the VAT threshold
Higher on royalties
Profit tax and the simplified tax
Companies pay 20%, filing by 31 March. Businesses below the VAT threshold can pay the simplified tax of 2% on turnover instead.
VAT and e-invoicing
VAT is 18%. Registration is required once turnover exceeds ₼200,000 in twelve months; VAT payers issue electronic tax invoices (e-qaimə) and file monthly.
Payments abroad
Dividends, interest and services paid to non-residents carry 10% withholding, with a higher rate on royalties, unless a treaty lowers it.
Key dates
- By the 20th of each monthVAT and withholding returns
- 31 MarchAnnual profit tax return
Figures and sources
5 figures- Corporate profit tax rate20%Under professional review
- VAT rate18%Under professional review
- Turnover in 12 months above which VAT registration is required₼200,000Under professional review
- Simplified tax on turnover2%Under professional review
- Withholding on dividends, interest and services paid to non-residents (14% on royalties)10%Under professional review
Indicative only. This assessment is a high-level overview of tax obligations in Azerbaijan based on the information you provided and rules in force for 2026. It is not tax or legal advice. Consult a qualified tax adviser in Azerbaijan (an Azerbaijani tax adviser) before making compliance decisions.