Azerbaijan expands list of countries to implement agreements on double taxation avoidance

Business Materials 2 March 2010 21:03 (UTC +04:00)

Azerbaijan, Baku, 2 March / Trend , I.Khalilova/

The agreement on avoidance of double taxation on income and property and the elimination of the facts of tax evasion between Iran and Azerbaijan signed on 10 March 2009 came into force in Azerbaijan, the Ministry of Taxes of Azerbaijan said.

In Azerbaijan, the agreement is referred to four types of tax (tax on profits of legal entities, the tax on income physical entities, property tax, land tax), Iran has two forms of tax (income tax and property tax). Profits from the operation in international traffic, marine, air and road vehicles are made taxable only in the country where they are exploited.

Taxes paid on dividends should not exceed 10 percent of their total amount. Payments to students or persons performing learning practice, for accommodation, education and training are exempt from tax if these benefits have the valid source of payment in the country.

Azerbaijan has signed an agreement to avoid double taxation and prevent income tax evasion with 39 countries. Agreements with 34 countries are in force.

Azerbaijan is in talks to sign similar agreements with Denmark, India, Sweden, Ireland, Spain, Kyrgyzstan, Serbia, Saudi Arabia and Syria. The majority of the agreements will be inked next year. Azerbaijan has already reached agreements with several of these countries, although legislative supplements are needed due to their complicated tax laws.