The Tax Code of the Republic of Azerbaijan

The Tax Code of the Republic of Azerbaijan
(Approved by the Law No.905-IG of the Republic of Azerbaijan from 11 July, 2000)

General Part
Chapter 1. General Provisions
Article 1. Relations Regulated by the Tax Code of Azerbaijan Republic
1.1. This Code shall establish the tax system of the Republic of Azerbaijan, general principles of taxation in the Republic of Azerbaijan, rules for determining, payment and collection of taxes, the rights and responsibilities of taxpayers and State tax authorities, as well as other parties to taxation procedures, tax control forms and methods, liability for tax law violations and the procedures for lodging complaints against unlawful actions (failure to take actions) committed by tax agencies and officials thereof.
1.2. This Code establishes the general principles of taxation and taxes for Nakhichevan Autonomy Republic and municipalities.
1.3. Definitions and rules determined in this Code shall be established for the purposes of tax payment and used only within the scope of taxation and tax control regulated by this Code and other legislative acts established on its basis.
Article 2. Tax Legislation of Azerbaijan Republic
2.1. The Constitution of Azerbaijan Republic, this Code, and those legal standards adopted in compliance herewith, shall comprise the tax legislation of Azerbaijan Republic.
2.2. Any article of law adopted on the basis of this Code or for the purposes of its execution shall not contradict with the provisions of this Code.
2.3. Should tax legislation contradict any legislation in other areas, with the exception of provision stipulated by Article 2.7. of this Code, the provisions of tax legislation shall apply.
2.4. Taxation and tax control issues can not be included into the legislative acts, other than tax legislation, with the following exceptions:
2.4.1. provisions concerning administrative offences in relation to tax issues, stipulated by the Code of the Republic of Azerbaijan for Administrative Offences;
2.4.2. provisions concerning tax crimes included in the Criminal Code of the Republic of Azerbaijan;
2.4.3. provisions concerning the priority of tax obligations included in the legislation on bankruptcy and insolvency;
2.4.4. provisions on taxes contained in budget legislation;
2.4.5. provisions governing state quarantees and term benefits on taxes;
2.4.6. provisions stipulated by agreements or laws on production sharing, main pipeline and other similar agreements and laws;
2.4.7. provisions stipulated by the legislation on oil and gas operations of export direction and special economic areas.
2.4.8. provisionsstipulated by the Lawof Azerbaijan Republic"On regulationof inspections in the field of entrepreneurship and protection of interests ofentrepreneurs"in respect oftax audits(exceptcameraltax audit).
2.4-1. Provisions in connection with the granting of tax exemptions and privileges are set only by this Code. Other legal acts, besides this Code, including legal acts referred to in Article 2.4 of this Code, can not stipulate provisions in relation to the tax exemptions and privileges.
2.5. Should any international treaty to which the Republic of Azerbaijan is a party provide for regulations that differ from those contained in this Code and legislative acts established on taxes, the provisions of said international treaties shall govern.
2.6. If international treaty with the intention of avoiding double taxation to which Azerbaijan Republic is the party applied by any person, who is not the resident of the state that entered into such treaty for the purpose of obtaining tax privileges, provisions of article 2.5. of this Code shall not be applied for the purposes of tax privileges to the resident of the state that is the party to such treaty.
2.7. If production sharing agreements and laws, main pipeline agreements and etc., approved before this Code is entered into force or after its enforcement, including the laws onoil and gas operations of export direction and special economic areas, oil and gas, contain provisions that differ from those stipulated by this Code and other legislative acts on taxes, then provisions of such agreements and laws shall be applied.
2.8. In the event of required changes to the Tax Code of the Azerbaijan in connection with definition of tax policy, tax administration and tax rates within the next year state budget draft, the drafts of these laws shall be submitted to the respective executive authority no later than by May 1 of current year, and respective executive authority further submits them to Milli Mejlis of the Republic of Azerbaijan.