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14.3. Calendar of Important Compliance Events

Tax Year

The tax year in Azerbaijan is the calendar year.

Tax Return Filing

Resident enterprises and PEs of non-residents must file profit tax returns for a calendar year by 31 March of the following year.

A non-resident that has no PE in Azerbaijan and receives income subject to WHT (except for dividends and interest) may file a tax return with respect to such income and expenses, connected with the generation of the income, for purposes of reassessment of profit tax at the rate of 20%.

Tax Payments

Taxpayers must make advance quarterly tax payments of profit tax by the 15th day of the month following the end of the calendar quarter. Payments are determined either (i) as 25% of tax for the past fiscal year or (ii) by multiplying the amount of actual income through the quarter by a ratio of tax to gross income for the previous year.

The final payment of profit tax coincides with submission of the declaration of profit tax (i.e. 31 March).

Voluntary Tax Disclosure

The taxpayer may make a voluntary tax disclosure of a tax liability not discovered during a field tax audit, to the tax authorities after the audit, In this case, the taxpayer pays only the tax due (i.e. without payment of a financial sanction).

Availability of E-Filing

The taxpayer may choose to submit tax returns either electronically or physical (hard) copy.