BAKU, Azerbaijan, May 6. President of the Republic of Azerbaijan Ilham Aliyev has signed the law “On Approval of the Agreement between the Government of Azerbaijan and the Government of Türkiye on the Abolition of Double Taxation in Respect of Taxes on Income and Prevention of Tax Evasion," Trend reports.
According to the document, the agreement signed on February 19, 2024, in Ankara was approved.
This agreement strengthens economic cooperation between the two countries, allowing companies from both countries to invest more and participate more in mutual trade.
Commenting on the issue, Azerbaijani expert Eldaniz Amirov said that Türkiye became the 56th country with which Azerbaijan has signed such an agreement.
"Non-residents engaged in activities in another country's territory and earning income pay tax in the amount provided for by that country's legislation. They then pay the income tax that their own country's legislation stipulates. With the signing of this agreement, the non-resident is exempt from paying this tax in their own country upon return.
This means that the non-resident pays tax only once. This is undoubtedly one of the main factors creating favorable conditions for entrepreneurial activity, and most importantly, it also stimulates the activities of foreign entrepreneurs (non-residents) in the country.
This law will stimulate the activities of non-resident Turkish businessmen. At the same time, it will encourage the activities of Azerbaijani entrepreneurs. This will contribute to the growth of trade turnover, the improvement of the investment climate, and the increase in employment in both countries," he added.
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