The Tax Code of the Republic of Azerbaijan

Article 97. Income
97.1. Income of a resident shall consist of income generated in and outside the Republic of Azerbaijan.
97.2. Income of a non-resident shall consist of income generated from the sources in the Republic of Azerbaijan.
97.3. Income shall cover:
97.3.1. income received as the result of employment;
97.3.2. income from activity which is not (connected with) employment;
97.3.3. all other kinds of income except for tax-exempt income andacceleration arisingfrom the revaluation offixed assets (funds).
Article 98. Income received as the result of employment
98.1. Any payments or benefits received by a physical person from employment, including those received as pension, or otherwise, from the former work-place, or income received by such physical person from future employment shall be income received in the form of salaries and wages.
98.2. For the purposes of Article 98.1. of this Code, the amount of benefit shall be equal to the amount indicated below less any expenses of employee incurred with respect to such benefit:
98.2.1. in the event of loans granted to the natural person at the interest rate which is lower than the inter-bank credit market interest rate В?” the difference between the amount to be paid at the market rate of inter-bank credit trade for such loans, and amount to be paid in accordance with lower rates;
98.2.2. in the event of the sale of goods, works, services or gratuitous transfer thereof by an employer to his employee - the fair market value of these goods, works, services;
98.2.3. in the event of reimbursement of expenses to an employee - the amount of reimbursement;
98.2.4. in the event of writing off of the employee’s debt or obligation to his employer - the amount of such debt or obligation;
98.2.5. 98.2.5. Insurance premiums paid by Employer;
98.2.6. in any other case - unless otherwise stipulated in instructions, the market value of a benefit pursuant to Article 14 of this Code.
98.3. Reimbursement of actual travel allowances, and also daily allowances paid to the members of deck crew instead of travel allowances at sea transport, fixed by the respective executive power body or other expenses, shall not be included in income.
98.4. The amounts and costs stipulated in Article 98.2 of this Code shall include excise, value added tax and any other tax which is subject to payment by employer in relation to the Contract value.
98.5. The income received by employer as the result of costs stipulated in article 109.3 of this Code shall not be a taxable income.