The Tax Code of the Republic of Azerbaijan

Article 141. Compensated deductions and reduction of reserves
141.1. If previously deducted expenses, losses, or doubtful loans are reimbursed, then the amounts received shall be deemed income for the moment in which they were reimbursed.
141.2. If previously deducted reserves are reduced, then the amount reduced shall be included in income.
Article 142. Income and losses upon the realization of assets
142.1. Income from the realization of assets shall consist of the positive difference between the proceeds from the realization of such assets and the cost of the assets as determined in accordance with Article 143 of this Code. Upon the transfer of assets on a gratuitous basis or at a reduced price, the income of the person transferring the assets shall be determined as the positive difference between the market value of the property so transferred and its cost as determined in accordance with Article 143 of this Code.
142.2. Losses from the realization of assets shall consist of the negative difference between the proceeds from the realization of such assets and their cost as determined in accordance with Article 143 of this Code.
142.3. This Article shall not apply to the assets subject to amortization under the method of classification into categories stipulated by Article 114 of this Code. (6)
Article 143. Cost of assets
The cost of assets shall include expenses for their acquisition, production, construction, assembly and installation as well as other expenses that increase their value with the exception of expenses for which the taxpayer is entitled to a deduction,and the growththat occursinrevaluation of fixed assets(funds) (positive difference arisingfrom the revaluation).
In the event of obtained assets to cover credits, the interest on credits do not increase the value of assets and shall be deducted from profits as per Article 108 of this Code.
Article 144. Non-recognition of profit or losses
144.1. No profit or loss shall be taken into account in the following cases when determining taxable income:
144.1.1. assets are transferred between spouses;
144.1.2. assets are transferred between former souses as part of a divorce settlement;
144.1.3. assets are impartially liquidated or alienated where the proceeds are reinvested in an asset of the same or similar nature before the end of the second year following the year in which the liquidation or alienation took place.
144.2. The cost of the replacing asset described in Article 144.1.3. of this Code shall be determined with reference to the cost of the replaced asset at the time of the liquidation or alienation.
144.3. The cost of an asset acquired in a transaction in which profit is not taken into consideration for tax purposes under Articles 144.1.1. or 144.1.2. shall be the cost of the transfer or on the date of transaction.
144.4. This Article shall not apply to assets depreciated by the method of classifying into categories under Article 114 of this Code, except for the cases where all assets in a category are transferred at the same time.