The Tax Code of the Republic of Azerbaijan

Article 220. Simplified tax rate
220.1. The simplified tax (with exception of taxpayers engaged in activities, stipulated under Article 218.4 of this Code and specified in Article 218.1.2 of this Code) (with exception of taxpayers engaged in activities stipulated under Article 218.2 of this Code) shall be calculated from the amount of funds (gross volume of cash flow) obtained from provision of goods, implementation of words, rendering of services by the taxpayers and non-sale profits at following rates:
for Baku: 4 percent
for other regions and cities, Nakhichevan Autonomy Republic: 2 percent
220.1-1. The persons referred to in Article 218.1.2 of this Code, shall calculate the simplified tax on objects of taxation, established by Article 219.1 of this Code (except for the sales turnover of goods whose prices are regulated by the relevant executive authority), at the following rates:
220.1-1.1. trading activity - 6 percent;
220.1-1.2. public catering activity - 8 percent.
220.2. Taxpayers involved in activities stipulated under Article 218.2 of this Code shall pay the tax at the rate of 10 percent.
220.2. For taxpayers involved in activities in cities and regions of the Republic of Azerbaijan, with exception of Baku, including Nakhichevan Autonomy Republic, the tax rate established shall be applied only when taxpayers are engaged in activities on these territories using their own production facilities, property and labour.
220.3 Payers of simplified tax registered for taxation purposes in cities and regions of the Republic of Azerbaijan, in Nakhichevan Autonomy Republic, but engaged in activities in the city of Baku shall be subject for payment of simplified tax established for the city of Baku.
220.4. On profits established for various tax rates, control shall be conducted separately. The highest tax rate shall be applied in the event of failure to maintain such control.
220.5. Simplified tax for taxpayers engaged in passenger and cargo transportation by automobile transport, is determined as follows: