The Tax Code of the Republic of Azerbaijan

Article 131. Procedure for recording income and expenditures using the cash basis method
Taxpayer using cash method shall account for income at the moment that it actually receives such income or such income is transferred to its disposal and for expenses - at the moment that these expenses are actually incurred.
Article 132. Moment of receipt of income when using the cash basis method
132.1. The moment of receipt of income shall be considered the moment that cash monies are received. Should non-cash payment be made, the moment of the receipt of income shall be the moment said monies are transferred to taxpayer’s bank account or to another account at his disposal or from which he is entitled to receive said resources.
132.2. In the case of annulment or discharge of taxpayer’s obligation, i.e. in the event of mutual offsetting, the moment of the receipt of income shall be considered the moment that the obligation is annulled or discharged.
Article 133. Moment of carrying out expenses when using the cash basis method
133.1. When taxpayer uses the cash method for tax accounting purposes, the moment of carrying out expenses shall be the moment that these expenses are actually incurred unless otherwise provided for in this Article.
133.2. If taxpayer pays out cash monies, the moment of incurring expenses shall be the moment the monies are paid. Should non-cash payment be made, the moment of incurring expenses shall be the moment that the bank receives the order of the taxpayer to transfer said funds.
133.3. In the case of the annulment or discharge of taxpayer’s financial obligation, i.e. in the event of mutual offsetting, the moment of carrying out expenses shall be the moment that the financial obligation is annulled or discharged.
133.4. When paying interest on a debt obligation or making payments for rental property (if the term of the debt obligation or rental agreement extends over several reporting periods) the amount of interest (or rent) actually paid, which is deductible for the tax year shall be deemed as the amount of interest (or rent) calculated for that year.