The Tax Code of the Republic of Azerbaijan

Article 116. Deduction for insurance payments
116.1 Insurance payments that are paid by insured parties under insurance agreements shall be deducted, with the exception of insurance payments on property damage insurance to employees’ favor, as well as life insurance made by foreign insurers.
116.2. Insurance contributions made on the basis of insurance contracts for accumulative life insurance and pension insurance, concluded by the physical entities with the insurers of the Republic of Azerbaijan for a period of not less than 3 years and providing the payment of insurance money after a 3-year period from the date of entry into force of the insurance contract, for tax purposes are deducted by the employer from income obtained in connection with employment of this physical entity.
The insurance contributions paid on accumulative life insurance and pension insurance, to be deducted by the employer from income obtained in connection with employment of this physical entity, shall be deducted only in case of transfer to a bank account of the insurer by the bank.
116.3. In the event of early termination of the insurance contract under article 116.2 of this Code, paid insurance contributions are taxed at the source of payment by the insurer.
Article 117. Expenses on geological surveying and preparatory work for the production of natural resources
117.1. Expenditures on geological surveying and preparatory work for the production of natural resources shall be deductible from gross income as amortization charges at the rates stipulated in Article 114 of this Code.
117.2. This Article shall apply also to expenditures on intangible assets incurred by the taxpayer in connection with the acquisition of rights to geological surveying and processing or exploitation of natural resources.
Article 118. Deductions from income of expenses on intangible assets
118.1. Intangible assets shall include expenses of legal and physical persons on intangible objects used for more than one year in economic activity.
118.2. Expenditures on intangible assets shall be deductible from income as amortization charges at the rate stipulated in Article 114 of this Code.
118.3. When costs on purchasing and production of intangible assets are deducted from income during calculation of taxpayer’s taxable income, specified costs shall not be related to the value of intangible assets to be amortized.