The Tax Code of the Republic of Azerbaijan

Article 123. Withholding of tax on interest at the source of payment
123.1. If income received from Azerbaijani source in accordance with Article 13.2.16. of this Code, interests paid by resident or non-resident’s permanent establishment or on behalf of such establishment with exception of interests paid on credits
(loans), deposits (accounts) of resident credit organizations or persons carrying out banking operations, including, from loan interests paid on financial leasing operations, toresident persons carrying out financial leasing or non-resident banks, or permanent establishment of a non-resident carrying out financial leasing shall be taxed at the source of payment at a rate of 10%, taking into consideration the discount provided for in Article 102.1.22 of this Code.
123.2. If the actual owner of interest is a natural person, interests from which taxes are levied, upon their payment to natural person shall not be taxed.
123.3. If the actual owner of interest is a taxable resident enterprise or the permanent establishment of non-resident then the specified enterprise or permanent establishment of non-resident receiving the interest in accordance with Article 123.1 of this Code, from which taxes are levied shall reduce the amount of tax paid at the source if documents are provided to confirm the payment of tax at the source of payment.
123.4. Income received as difference between the payments by and to insured shall be taxed at the rate of 10 percent.
Article 124. Withholding of tax from rent payment and royalty at the source of payment
124.1. If the income from the rent payment of movable and immovable property, income from royalty paid by the resident or permanent establishment of non-resident in the Republic of Azerbaijan or paid on his behalf received in accordance with article 13.2.16. of this Code from Azerbaijani source such income shall be taxed at the source of payment at the rate of 14 percent.
If leasing payment is paid by natural person, who is not registered as taxpayer, Lessor in accordance with this Article shall pay the tax at the rate of 14 percent and upon the registration shall submit the declaration in accordance with Articles 33 and 149 of this Code
124.2 If tax is withheld from natural person receiving the leasing payment or royalty, or paid in accordance with Article 124.1 of this Code, the tax is not withheld from such incomes
124.3. Amounts paid to resident enterprises in the Republic of Azerbaijan and permanent establishments of non-residents shall not be a taxable base under this Article.
124.4. Minimum amount of monthly leasing payment for the purposes of taxation of immovable property (with exception of resident housing fund) in the Republic of Azerbaijan shall be established by relevant executive authority.
124.4. For the purposes of taxation of real estate(other thanhousing)in the Republic of Azerbaijan,the sumof the monthly leasepayment is establishedin accordance with Article14 of this Code, taking into account the market value.