https://azefinance.az/en/ en[shortrss] https://azefinance.az/en/blog/3163-the-euro-and-ruble-have-weakened-slightly-against-the-manat-exchange-rates.html https://azefinance.az/en/blog/3163-the-euro-and-ruble-have-weakened-slightly-against-the-manat-exchange-rates.html The euro and ruble have weakened slightly against the manat — EXCHANGE RATES

[allow-turbo]The euro and ruble have weakened slightly against the manat — EXCHANGE RATES

According to the official exchange rates announced by the Central Bank of Azerbaijan for today, the US dollar exchange rate remained unchanged at 1.7000 manats.

The euro exchange rate decreased by 0.12% to 1.9672 manats, while the exchange rate of 100 Russian rubles decreased by 0.83% to 2.0052 manats.

]]>[/allow-turbo] Blog Mühasib Tue, 18 Aug 2026 10:15:59 +0400 [/shortrss] [fullrss] https://azefinance.az/en/blog/3163-the-euro-and-ruble-have-weakened-slightly-against-the-manat-exchange-rates.html https://azefinance.az/en/blog/3163-the-euro-and-ruble-have-weakened-slightly-against-the-manat-exchange-rates.html Mühasib Tue, 18 Aug 2026 10:15:59 +0400 The euro and ruble have weakened slightly against the manat — EXCHANGE RATES

]]> [allow-turbo]The euro and ruble have weakened slightly against the manat — EXCHANGE RATES

According to the official exchange rates announced by the Central Bank of Azerbaijan for today, the US dollar exchange rate remained unchanged at 1.7000 manats.

The euro exchange rate decreased by 0.12% to 1.9672 manats, while the exchange rate of 100 Russian rubles decreased by 0.83% to 2.0052 manats.

]]>[/allow-turbo] [allow-dzen]The euro and ruble have weakened slightly against the manat — EXCHANGE RATES

According to the official exchange rates announced by the Central Bank of Azerbaijan for today, the US dollar exchange rate remained unchanged at 1.7000 manats.

The euro exchange rate decreased by 0.12% to 1.9672 manats, while the exchange rate of 100 Russian rubles decreased by 0.83% to 2.0052 manats.

]]>[/allow-dzen] [/fullrss] [yandexrss] https://azefinance.az/en/blog/3163-the-euro-and-ruble-have-weakened-slightly-against-the-manat-exchange-rates.html The euro and ruble have weakened slightly against the manat — EXCHANGE RATES

Blog Tue, 18 Aug 2026 10:15:59 +0400 The euro and ruble have weakened slightly against the manat — EXCHANGE RATES

According to the official exchange rates announced by the Central Bank of Azerbaijan for today, the US dollar exchange rate remained unchanged at 1.7000 manats.

The euro exchange rate decreased by 0.12% to 1.9672 manats, while the exchange rate of 100 Russian rubles decreased by 0.83% to 2.0052 manats.

[allow-turbo]The euro and ruble have weakened slightly against the manat — EXCHANGE RATES

According to the official exchange rates announced by the Central Bank of Azerbaijan for today, the US dollar exchange rate remained unchanged at 1.7000 manats.

The euro exchange rate decreased by 0.12% to 1.9672 manats, while the exchange rate of 100 Russian rubles decreased by 0.83% to 2.0052 manats.

]]>[/allow-turbo] [allow-dzen]The euro and ruble have weakened slightly against the manat — EXCHANGE RATES

According to the official exchange rates announced by the Central Bank of Azerbaijan for today, the US dollar exchange rate remained unchanged at 1.7000 manats.

The euro exchange rate decreased by 0.12% to 1.9672 manats, while the exchange rate of 100 Russian rubles decreased by 0.83% to 2.0052 manats.

]]>[/allow-dzen] [/yandexrss][shortrss] https://azefinance.az/en/blog/3162-regarding-companies-from-which-azerbaijanis-purchase-goods-from-abroad-tax-update.html https://azefinance.az/en/blog/3162-regarding-companies-from-which-azerbaijanis-purchase-goods-from-abroad-tax-update.html Regarding Companies from Which Azerbaijanis Purchase Goods from Abroad – TAX UPDATE

[allow-turbo]Regarding Companies from Which Azerbaijanis Purchase Goods from Abroad – TAX UPDATE

A new regulation is being introduced in Azerbaijan concerning foreign companies that sell goods and products online.

According to AZE Finance, this is provided for under amendments to the Tax Code. Under the amendments approved on February 13, 2026, and entering into force on August 23, foreign companies selling goods online in Azerbaijan will be required to register for tax purposes under certain conditions.

In this regard, Article 33.8-1 of the Tax Code, which regulates the requirements for tax registration, has been amended. According to the new addition to this article, foreign companies that are not registered for tax purposes in Azerbaijan and sell goods through e-commerce to persons who are not registered as taxpayers in Azerbaijan must register for tax purposes once they exceed the established turnover threshold.

More specifically, if the annual turnover of goods and products sold by a company to Azerbaijan through online trade exceeds USD 10,000 (AZN 17,000), the company must register electronically with the tax authorities within 30 days.

If the turnover does not exceed USD 10,000, registration is not mandatory. However, the company may voluntarily register for tax purposes if it wishes.

However, these requirements do not apply to companies providing consulting, legal, financial, accounting, design and engineering services via email and other interactive communication tools, real-time educational and training services provided via the internet, or online ticket-booking services for events in the fields of science, education, culture, sports and entertainment.]]>[/allow-turbo] Blog Mühasib Tue, 18 Aug 2026 09:52:53 +0400 [/shortrss] [fullrss] https://azefinance.az/en/blog/3162-regarding-companies-from-which-azerbaijanis-purchase-goods-from-abroad-tax-update.html https://azefinance.az/en/blog/3162-regarding-companies-from-which-azerbaijanis-purchase-goods-from-abroad-tax-update.html Mühasib Tue, 18 Aug 2026 09:52:53 +0400 Regarding Companies from Which Azerbaijanis Purchase Goods from Abroad – TAX UPDATE

]]> [allow-turbo]Regarding Companies from Which Azerbaijanis Purchase Goods from Abroad – TAX UPDATE

A new regulation is being introduced in Azerbaijan concerning foreign companies that sell goods and products online.

According to AZE Finance, this is provided for under amendments to the Tax Code. Under the amendments approved on February 13, 2026, and entering into force on August 23, foreign companies selling goods online in Azerbaijan will be required to register for tax purposes under certain conditions.

In this regard, Article 33.8-1 of the Tax Code, which regulates the requirements for tax registration, has been amended. According to the new addition to this article, foreign companies that are not registered for tax purposes in Azerbaijan and sell goods through e-commerce to persons who are not registered as taxpayers in Azerbaijan must register for tax purposes once they exceed the established turnover threshold.

More specifically, if the annual turnover of goods and products sold by a company to Azerbaijan through online trade exceeds USD 10,000 (AZN 17,000), the company must register electronically with the tax authorities within 30 days.

If the turnover does not exceed USD 10,000, registration is not mandatory. However, the company may voluntarily register for tax purposes if it wishes.

However, these requirements do not apply to companies providing consulting, legal, financial, accounting, design and engineering services via email and other interactive communication tools, real-time educational and training services provided via the internet, or online ticket-booking services for events in the fields of science, education, culture, sports and entertainment.]]>[/allow-turbo] [allow-dzen]Regarding Companies from Which Azerbaijanis Purchase Goods from Abroad – TAX UPDATE

A new regulation is being introduced in Azerbaijan concerning foreign companies that sell goods and products online.

According to AZE Finance, this is provided for under amendments to the Tax Code. Under the amendments approved on February 13, 2026, and entering into force on August 23, foreign companies selling goods online in Azerbaijan will be required to register for tax purposes under certain conditions.

In this regard, Article 33.8-1 of the Tax Code, which regulates the requirements for tax registration, has been amended. According to the new addition to this article, foreign companies that are not registered for tax purposes in Azerbaijan and sell goods through e-commerce to persons who are not registered as taxpayers in Azerbaijan must register for tax purposes once they exceed the established turnover threshold.

More specifically, if the annual turnover of goods and products sold by a company to Azerbaijan through online trade exceeds USD 10,000 (AZN 17,000), the company must register electronically with the tax authorities within 30 days.

If the turnover does not exceed USD 10,000, registration is not mandatory. However, the company may voluntarily register for tax purposes if it wishes.

However, these requirements do not apply to companies providing consulting, legal, financial, accounting, design and engineering services via email and other interactive communication tools, real-time educational and training services provided via the internet, or online ticket-booking services for events in the fields of science, education, culture, sports and entertainment.]]>[/allow-dzen] [/fullrss] [yandexrss] https://azefinance.az/en/blog/3162-regarding-companies-from-which-azerbaijanis-purchase-goods-from-abroad-tax-update.html Regarding Companies from Which Azerbaijanis Purchase Goods from Abroad – TAX UPDATE

Blog Tue, 18 Aug 2026 09:52:53 +0400 Regarding Companies from Which Azerbaijanis Purchase Goods from Abroad – TAX UPDATE

A new regulation is being introduced in Azerbaijan concerning foreign companies that sell goods and products online.

According to AZE Finance, this is provided for under amendments to the Tax Code. Under the amendments approved on February 13, 2026, and entering into force on August 23, foreign companies selling goods online in Azerbaijan will be required to register for tax purposes under certain conditions.

In this regard, Article 33.8-1 of the Tax Code, which regulates the requirements for tax registration, has been amended. According to the new addition to this article, foreign companies that are not registered for tax purposes in Azerbaijan and sell goods through e-commerce to persons who are not registered as taxpayers in Azerbaijan must register for tax purposes once they exceed the established turnover threshold.

More specifically, if the annual turnover of goods and products sold by a company to Azerbaijan through online trade exceeds USD 10,000 (AZN 17,000), the company must register electronically with the tax authorities within 30 days.

If the turnover does not exceed USD 10,000, registration is not mandatory. However, the company may voluntarily register for tax purposes if it wishes.

However, these requirements do not apply to companies providing consulting, legal, financial, accounting, design and engineering services via email and other interactive communication tools, real-time educational and training services provided via the internet, or online ticket-booking services for events in the fields of science, education, culture, sports and entertainment. [allow-turbo]Regarding Companies from Which Azerbaijanis Purchase Goods from Abroad – TAX UPDATE

A new regulation is being introduced in Azerbaijan concerning foreign companies that sell goods and products online.

According to AZE Finance, this is provided for under amendments to the Tax Code. Under the amendments approved on February 13, 2026, and entering into force on August 23, foreign companies selling goods online in Azerbaijan will be required to register for tax purposes under certain conditions.

In this regard, Article 33.8-1 of the Tax Code, which regulates the requirements for tax registration, has been amended. According to the new addition to this article, foreign companies that are not registered for tax purposes in Azerbaijan and sell goods through e-commerce to persons who are not registered as taxpayers in Azerbaijan must register for tax purposes once they exceed the established turnover threshold.

More specifically, if the annual turnover of goods and products sold by a company to Azerbaijan through online trade exceeds USD 10,000 (AZN 17,000), the company must register electronically with the tax authorities within 30 days.

If the turnover does not exceed USD 10,000, registration is not mandatory. However, the company may voluntarily register for tax purposes if it wishes.

However, these requirements do not apply to companies providing consulting, legal, financial, accounting, design and engineering services via email and other interactive communication tools, real-time educational and training services provided via the internet, or online ticket-booking services for events in the fields of science, education, culture, sports and entertainment.]]>[/allow-turbo] [allow-dzen]Regarding Companies from Which Azerbaijanis Purchase Goods from Abroad – TAX UPDATE

A new regulation is being introduced in Azerbaijan concerning foreign companies that sell goods and products online.

According to AZE Finance, this is provided for under amendments to the Tax Code. Under the amendments approved on February 13, 2026, and entering into force on August 23, foreign companies selling goods online in Azerbaijan will be required to register for tax purposes under certain conditions.

In this regard, Article 33.8-1 of the Tax Code, which regulates the requirements for tax registration, has been amended. According to the new addition to this article, foreign companies that are not registered for tax purposes in Azerbaijan and sell goods through e-commerce to persons who are not registered as taxpayers in Azerbaijan must register for tax purposes once they exceed the established turnover threshold.

More specifically, if the annual turnover of goods and products sold by a company to Azerbaijan through online trade exceeds USD 10,000 (AZN 17,000), the company must register electronically with the tax authorities within 30 days.

If the turnover does not exceed USD 10,000, registration is not mandatory. However, the company may voluntarily register for tax purposes if it wishes.

However, these requirements do not apply to companies providing consulting, legal, financial, accounting, design and engineering services via email and other interactive communication tools, real-time educational and training services provided via the internet, or online ticket-booking services for events in the fields of science, education, culture, sports and entertainment.]]>[/allow-dzen] [/yandexrss][shortrss] https://azefinance.az/en/blog/3161-payment-details-for-compulsory-health-insurance-contributions-have-been-updated.html https://azefinance.az/en/blog/3161-payment-details-for-compulsory-health-insurance-contributions-have-been-updated.html Payment details for compulsory health insurance contributions have been updated

[allow-turbo]Payment details for compulsory health insurance contributions have been updated

Based on an appeal by the State Agency for Medical Insurance and Expertise under the Ministry of Labor and Social Protection of the Population of the Republic of Azerbaijan, the payment details have been updated to ensure the timely and full transfer of compulsory health insurance contributions, as well as penalties, fines and financial sanctions related to such insurance.

Information on the updated payment details has been published on the official website of the State Tax Service under the Ministry of Economy.

The updated budget payment details for compulsory health insurance contributions, as well as penalties, fines and financial sanctions related to such insurance, can be viewed by following the link below.

https://www.taxes.gov.az/az/page/budce-rekvizitleri-barede-melumatin-verilmesi]]>[/allow-turbo] Blog Mühasib Mon, 17 Aug 2026 12:02:54 +0400 [/shortrss] [fullrss] https://azefinance.az/en/blog/3161-payment-details-for-compulsory-health-insurance-contributions-have-been-updated.html https://azefinance.az/en/blog/3161-payment-details-for-compulsory-health-insurance-contributions-have-been-updated.html Mühasib Mon, 17 Aug 2026 12:02:54 +0400 Payment details for compulsory health insurance contributions have been updated

]]> [allow-turbo]Payment details for compulsory health insurance contributions have been updated

Based on an appeal by the State Agency for Medical Insurance and Expertise under the Ministry of Labor and Social Protection of the Population of the Republic of Azerbaijan, the payment details have been updated to ensure the timely and full transfer of compulsory health insurance contributions, as well as penalties, fines and financial sanctions related to such insurance.

Information on the updated payment details has been published on the official website of the State Tax Service under the Ministry of Economy.

The updated budget payment details for compulsory health insurance contributions, as well as penalties, fines and financial sanctions related to such insurance, can be viewed by following the link below.

https://www.taxes.gov.az/az/page/budce-rekvizitleri-barede-melumatin-verilmesi]]>[/allow-turbo] [allow-dzen]Payment details for compulsory health insurance contributions have been updated

Based on an appeal by the State Agency for Medical Insurance and Expertise under the Ministry of Labor and Social Protection of the Population of the Republic of Azerbaijan, the payment details have been updated to ensure the timely and full transfer of compulsory health insurance contributions, as well as penalties, fines and financial sanctions related to such insurance.

Information on the updated payment details has been published on the official website of the State Tax Service under the Ministry of Economy.

The updated budget payment details for compulsory health insurance contributions, as well as penalties, fines and financial sanctions related to such insurance, can be viewed by following the link below.

https://www.taxes.gov.az/az/page/budce-rekvizitleri-barede-melumatin-verilmesi]]>[/allow-dzen] [/fullrss] [yandexrss] https://azefinance.az/en/blog/3161-payment-details-for-compulsory-health-insurance-contributions-have-been-updated.html Payment details for compulsory health insurance contributions have been updated

Blog Mon, 17 Aug 2026 12:02:54 +0400 Payment details for compulsory health insurance contributions have been updated

Based on an appeal by the State Agency for Medical Insurance and Expertise under the Ministry of Labor and Social Protection of the Population of the Republic of Azerbaijan, the payment details have been updated to ensure the timely and full transfer of compulsory health insurance contributions, as well as penalties, fines and financial sanctions related to such insurance.

Information on the updated payment details has been published on the official website of the State Tax Service under the Ministry of Economy.

The updated budget payment details for compulsory health insurance contributions, as well as penalties, fines and financial sanctions related to such insurance, can be viewed by following the link below.

https://www.taxes.gov.az/az/page/budce-rekvizitleri-barede-melumatin-verilmesi [allow-turbo]Payment details for compulsory health insurance contributions have been updated

Based on an appeal by the State Agency for Medical Insurance and Expertise under the Ministry of Labor and Social Protection of the Population of the Republic of Azerbaijan, the payment details have been updated to ensure the timely and full transfer of compulsory health insurance contributions, as well as penalties, fines and financial sanctions related to such insurance.

Information on the updated payment details has been published on the official website of the State Tax Service under the Ministry of Economy.

The updated budget payment details for compulsory health insurance contributions, as well as penalties, fines and financial sanctions related to such insurance, can be viewed by following the link below.

https://www.taxes.gov.az/az/page/budce-rekvizitleri-barede-melumatin-verilmesi]]>[/allow-turbo] [allow-dzen]Payment details for compulsory health insurance contributions have been updated

Based on an appeal by the State Agency for Medical Insurance and Expertise under the Ministry of Labor and Social Protection of the Population of the Republic of Azerbaijan, the payment details have been updated to ensure the timely and full transfer of compulsory health insurance contributions, as well as penalties, fines and financial sanctions related to such insurance.

Information on the updated payment details has been published on the official website of the State Tax Service under the Ministry of Economy.

The updated budget payment details for compulsory health insurance contributions, as well as penalties, fines and financial sanctions related to such insurance, can be viewed by following the link below.

https://www.taxes.gov.az/az/page/budce-rekvizitleri-barede-melumatin-verilmesi]]>[/allow-dzen] [/yandexrss][shortrss] https://azefinance.az/en/blog/3160-what-tax-obligation-arises-for-an-individual-who-leases-out-their-property.html https://azefinance.az/en/blog/3160-what-tax-obligation-arises-for-an-individual-who-leases-out-their-property.html What tax obligation arises for an individual who leases out their property?

[allow-turbo]What tax obligation arises for an individual who leases out their property?

An individual has leased out a property owned by them to another person under a lease agreement. The VÖEN (tax identification number) of both the lessor and the lessee is indicated in the agreement. Although leasing is not registered as the lessor’s main type of activity (the individual previously engaged in trading at another property using the same VÖEN), is this considered entrepreneurial activity?

The State Tax Service under the Ministry of Economy has stated that, pursuant to Article 124.1 of the Tax Code, income from the lease of movable and immovable property is subject to a 14% withholding tax if such income is derived from an Azerbaijani source in accordance with Article 13.2.16 of the Tax Code.

According to Article 150.1.6 of the Tax Code, legal entities, entrepreneurs and individuals receiving income from non-entrepreneurial activities who make payments provided for under Articles 124, 125 or 126 of the Tax Code are required to withhold tax at source. The person required to withhold tax from rental payments must transfer the tax to the state budget no later than the 20th day of the month following the quarter in which the income was paid and submit the withholding tax return to the tax authority.

In the case described in the inquiry, if rental payments to a resident individual are made by persons registered with the tax authorities as taxpayers, the tax liability on rental income is fulfilled by the lessee through withholding at source at a rate of 14%. In this case, the individual leasing out their property has no obligation to make any tax payments or submit any tax reports.

Pursuant to Article 58.1 of the Tax Code, if the amount of tax, including withholding tax, indicated in a tax return is understated compared with the amount that should have been reported, or if the amount of tax due to the state budget is evaded by failing to submit a tax return, a financial penalty equal to 50% of the understated or evaded tax amount is imposed on the taxpayer, except for the case provided for in Article 58.1-1 of the Tax Code.

Basis: Articles 124 and 150.1.6 of the Tax Code.]]>[/allow-turbo] Blog Mühasib Mon, 17 Aug 2026 10:12:25 +0400 [/shortrss] [fullrss] https://azefinance.az/en/blog/3160-what-tax-obligation-arises-for-an-individual-who-leases-out-their-property.html https://azefinance.az/en/blog/3160-what-tax-obligation-arises-for-an-individual-who-leases-out-their-property.html Mühasib Mon, 17 Aug 2026 10:12:25 +0400 What tax obligation arises for an individual who leases out their property?

]]> [allow-turbo]What tax obligation arises for an individual who leases out their property?

An individual has leased out a property owned by them to another person under a lease agreement. The VÖEN (tax identification number) of both the lessor and the lessee is indicated in the agreement. Although leasing is not registered as the lessor’s main type of activity (the individual previously engaged in trading at another property using the same VÖEN), is this considered entrepreneurial activity?

The State Tax Service under the Ministry of Economy has stated that, pursuant to Article 124.1 of the Tax Code, income from the lease of movable and immovable property is subject to a 14% withholding tax if such income is derived from an Azerbaijani source in accordance with Article 13.2.16 of the Tax Code.

According to Article 150.1.6 of the Tax Code, legal entities, entrepreneurs and individuals receiving income from non-entrepreneurial activities who make payments provided for under Articles 124, 125 or 126 of the Tax Code are required to withhold tax at source. The person required to withhold tax from rental payments must transfer the tax to the state budget no later than the 20th day of the month following the quarter in which the income was paid and submit the withholding tax return to the tax authority.

In the case described in the inquiry, if rental payments to a resident individual are made by persons registered with the tax authorities as taxpayers, the tax liability on rental income is fulfilled by the lessee through withholding at source at a rate of 14%. In this case, the individual leasing out their property has no obligation to make any tax payments or submit any tax reports.

Pursuant to Article 58.1 of the Tax Code, if the amount of tax, including withholding tax, indicated in a tax return is understated compared with the amount that should have been reported, or if the amount of tax due to the state budget is evaded by failing to submit a tax return, a financial penalty equal to 50% of the understated or evaded tax amount is imposed on the taxpayer, except for the case provided for in Article 58.1-1 of the Tax Code.

Basis: Articles 124 and 150.1.6 of the Tax Code.]]>[/allow-turbo] [allow-dzen]What tax obligation arises for an individual who leases out their property?

An individual has leased out a property owned by them to another person under a lease agreement. The VÖEN (tax identification number) of both the lessor and the lessee is indicated in the agreement. Although leasing is not registered as the lessor’s main type of activity (the individual previously engaged in trading at another property using the same VÖEN), is this considered entrepreneurial activity?

The State Tax Service under the Ministry of Economy has stated that, pursuant to Article 124.1 of the Tax Code, income from the lease of movable and immovable property is subject to a 14% withholding tax if such income is derived from an Azerbaijani source in accordance with Article 13.2.16 of the Tax Code.

According to Article 150.1.6 of the Tax Code, legal entities, entrepreneurs and individuals receiving income from non-entrepreneurial activities who make payments provided for under Articles 124, 125 or 126 of the Tax Code are required to withhold tax at source. The person required to withhold tax from rental payments must transfer the tax to the state budget no later than the 20th day of the month following the quarter in which the income was paid and submit the withholding tax return to the tax authority.

In the case described in the inquiry, if rental payments to a resident individual are made by persons registered with the tax authorities as taxpayers, the tax liability on rental income is fulfilled by the lessee through withholding at source at a rate of 14%. In this case, the individual leasing out their property has no obligation to make any tax payments or submit any tax reports.

Pursuant to Article 58.1 of the Tax Code, if the amount of tax, including withholding tax, indicated in a tax return is understated compared with the amount that should have been reported, or if the amount of tax due to the state budget is evaded by failing to submit a tax return, a financial penalty equal to 50% of the understated or evaded tax amount is imposed on the taxpayer, except for the case provided for in Article 58.1-1 of the Tax Code.

Basis: Articles 124 and 150.1.6 of the Tax Code.]]>[/allow-dzen] [/fullrss] [yandexrss] https://azefinance.az/en/blog/3160-what-tax-obligation-arises-for-an-individual-who-leases-out-their-property.html What tax obligation arises for an individual who leases out their property?

Blog Mon, 17 Aug 2026 10:12:25 +0400 What tax obligation arises for an individual who leases out their property?

An individual has leased out a property owned by them to another person under a lease agreement. The VÖEN (tax identification number) of both the lessor and the lessee is indicated in the agreement. Although leasing is not registered as the lessor’s main type of activity (the individual previously engaged in trading at another property using the same VÖEN), is this considered entrepreneurial activity?

The State Tax Service under the Ministry of Economy has stated that, pursuant to Article 124.1 of the Tax Code, income from the lease of movable and immovable property is subject to a 14% withholding tax if such income is derived from an Azerbaijani source in accordance with Article 13.2.16 of the Tax Code.

According to Article 150.1.6 of the Tax Code, legal entities, entrepreneurs and individuals receiving income from non-entrepreneurial activities who make payments provided for under Articles 124, 125 or 126 of the Tax Code are required to withhold tax at source. The person required to withhold tax from rental payments must transfer the tax to the state budget no later than the 20th day of the month following the quarter in which the income was paid and submit the withholding tax return to the tax authority.

In the case described in the inquiry, if rental payments to a resident individual are made by persons registered with the tax authorities as taxpayers, the tax liability on rental income is fulfilled by the lessee through withholding at source at a rate of 14%. In this case, the individual leasing out their property has no obligation to make any tax payments or submit any tax reports.

Pursuant to Article 58.1 of the Tax Code, if the amount of tax, including withholding tax, indicated in a tax return is understated compared with the amount that should have been reported, or if the amount of tax due to the state budget is evaded by failing to submit a tax return, a financial penalty equal to 50% of the understated or evaded tax amount is imposed on the taxpayer, except for the case provided for in Article 58.1-1 of the Tax Code.

Basis: Articles 124 and 150.1.6 of the Tax Code. [allow-turbo]What tax obligation arises for an individual who leases out their property?

An individual has leased out a property owned by them to another person under a lease agreement. The VÖEN (tax identification number) of both the lessor and the lessee is indicated in the agreement. Although leasing is not registered as the lessor’s main type of activity (the individual previously engaged in trading at another property using the same VÖEN), is this considered entrepreneurial activity?

The State Tax Service under the Ministry of Economy has stated that, pursuant to Article 124.1 of the Tax Code, income from the lease of movable and immovable property is subject to a 14% withholding tax if such income is derived from an Azerbaijani source in accordance with Article 13.2.16 of the Tax Code.

According to Article 150.1.6 of the Tax Code, legal entities, entrepreneurs and individuals receiving income from non-entrepreneurial activities who make payments provided for under Articles 124, 125 or 126 of the Tax Code are required to withhold tax at source. The person required to withhold tax from rental payments must transfer the tax to the state budget no later than the 20th day of the month following the quarter in which the income was paid and submit the withholding tax return to the tax authority.

In the case described in the inquiry, if rental payments to a resident individual are made by persons registered with the tax authorities as taxpayers, the tax liability on rental income is fulfilled by the lessee through withholding at source at a rate of 14%. In this case, the individual leasing out their property has no obligation to make any tax payments or submit any tax reports.

Pursuant to Article 58.1 of the Tax Code, if the amount of tax, including withholding tax, indicated in a tax return is understated compared with the amount that should have been reported, or if the amount of tax due to the state budget is evaded by failing to submit a tax return, a financial penalty equal to 50% of the understated or evaded tax amount is imposed on the taxpayer, except for the case provided for in Article 58.1-1 of the Tax Code.

Basis: Articles 124 and 150.1.6 of the Tax Code.]]>[/allow-turbo] [allow-dzen]What tax obligation arises for an individual who leases out their property?

An individual has leased out a property owned by them to another person under a lease agreement. The VÖEN (tax identification number) of both the lessor and the lessee is indicated in the agreement. Although leasing is not registered as the lessor’s main type of activity (the individual previously engaged in trading at another property using the same VÖEN), is this considered entrepreneurial activity?

The State Tax Service under the Ministry of Economy has stated that, pursuant to Article 124.1 of the Tax Code, income from the lease of movable and immovable property is subject to a 14% withholding tax if such income is derived from an Azerbaijani source in accordance with Article 13.2.16 of the Tax Code.

According to Article 150.1.6 of the Tax Code, legal entities, entrepreneurs and individuals receiving income from non-entrepreneurial activities who make payments provided for under Articles 124, 125 or 126 of the Tax Code are required to withhold tax at source. The person required to withhold tax from rental payments must transfer the tax to the state budget no later than the 20th day of the month following the quarter in which the income was paid and submit the withholding tax return to the tax authority.

In the case described in the inquiry, if rental payments to a resident individual are made by persons registered with the tax authorities as taxpayers, the tax liability on rental income is fulfilled by the lessee through withholding at source at a rate of 14%. In this case, the individual leasing out their property has no obligation to make any tax payments or submit any tax reports.

Pursuant to Article 58.1 of the Tax Code, if the amount of tax, including withholding tax, indicated in a tax return is understated compared with the amount that should have been reported, or if the amount of tax due to the state budget is evaded by failing to submit a tax return, a financial penalty equal to 50% of the understated or evaded tax amount is imposed on the taxpayer, except for the case provided for in Article 58.1-1 of the Tax Code.

Basis: Articles 124 and 150.1.6 of the Tax Code.]]>[/allow-dzen] [/yandexrss][shortrss] https://azefinance.az/en/blog/3159-official-exchange-rates-have-been-announced.html https://azefinance.az/en/blog/3159-official-exchange-rates-have-been-announced.html Official exchange rates have been announced

[allow-turbo]Official exchange rates have been announced

The official exchange rates for August 14, 2026 have been announced. We present the latest rates published by the Central Bank of Azerbaijan.

]]>[/allow-turbo] Blog Mühasib Fri, 14 Aug 2026 11:27:43 +0400 [/shortrss] [fullrss] https://azefinance.az/en/blog/3159-official-exchange-rates-have-been-announced.html https://azefinance.az/en/blog/3159-official-exchange-rates-have-been-announced.html Mühasib Fri, 14 Aug 2026 11:27:43 +0400 Official exchange rates have been announced

]]> [allow-turbo]Official exchange rates have been announced

The official exchange rates for August 14, 2026 have been announced. We present the latest rates published by the Central Bank of Azerbaijan.

]]>[/allow-turbo] [allow-dzen]Official exchange rates have been announced

The official exchange rates for August 14, 2026 have been announced. We present the latest rates published by the Central Bank of Azerbaijan.

]]>[/allow-dzen] [/fullrss] [yandexrss] https://azefinance.az/en/blog/3159-official-exchange-rates-have-been-announced.html Official exchange rates have been announced

Blog Fri, 14 Aug 2026 11:27:43 +0400 Official exchange rates have been announced

The official exchange rates for August 14, 2026 have been announced. We present the latest rates published by the Central Bank of Azerbaijan.

[allow-turbo]Official exchange rates have been announced

The official exchange rates for August 14, 2026 have been announced. We present the latest rates published by the Central Bank of Azerbaijan.

]]>[/allow-turbo] [allow-dzen]Official exchange rates have been announced

The official exchange rates for August 14, 2026 have been announced. We present the latest rates published by the Central Bank of Azerbaijan.

]]>[/allow-dzen] [/yandexrss][shortrss] https://azefinance.az/en/blog/3158-what-is-the-amount-of-the-vat-vatodv-relief-for-an-individual-entrepreneur-engaged-in-catering-and-food-service-activities.html https://azefinance.az/en/blog/3158-what-is-the-amount-of-the-vat-vatodv-relief-for-an-individual-entrepreneur-engaged-in-catering-and-food-service-activities.html What is the amount of the VAT (VAT/ÖDV) relief for an individual entrepreneur engaged in catering and food service activities?

[allow-turbo]What is the amount of the VAT (VAT/ÖDV) relief for an individual entrepreneur engaged in catering and food service activities?

An individual entrepreneur engaged in catering and food service activities is registered as a VAT payer. Starting from 2026, a number of amendments were introduced to the Tax Code concerning catering activities, including a VAT relief for cashless turnover. In January 2026, the entrepreneur’s turnover amounted to AZN 80,000, of which AZN 30,000 was generated from customer payments made through a POS terminal. In this case, what is the amount of VAT relief applicable to the taxpayer for January 2026?

According to the State Tax Service under the Ministry of Economy, starting from January 1, 2026, pursuant to the amendment to Article 174.5 of the Tax Code, for a period of three years, 50% of the turnover of persons engaged in catering activities, generated from cashless payments made through a POS terminal for services provided to the public during the reporting period, is deducted from their total taxable turnover. Cashless payments must be made through a POS terminal integrated with the cash register in a unified operating system.

At the same time, starting from January 1, 2026, pursuant to the amendment to Article 102.1.41 of the Tax Code, income received by individuals engaged in catering activities as a result of the reduction of the VAT amount in accordance with Article 174.5, when calculating VAT payable to the state budget, is exempt from income tax.

Accordingly, if the cashless payments of a VAT-registered individual entrepreneur engaged in catering activities are made through a POS terminal integrated with the cash register in a unified operating system, 50% of the turnover generated from cashless POS-terminal payments for services provided to the public is deducted from the total taxable turnover:

AZN 30,000 × 50% = AZN 15,000

The remaining amount:

AZN 80,000 − AZN 15,000 = AZN 65,000

is subject to VAT at a rate of 18%.

In addition, the AZN 15,000 income resulting from the reduction of the VAT amount is exempt from income tax.

Legal basis: Articles 106.1.34 and 174.5 of the Tax Code.]]>[/allow-turbo] Blog Mühasib Fri, 14 Aug 2026 10:44:18 +0400 [/shortrss] [fullrss] https://azefinance.az/en/blog/3158-what-is-the-amount-of-the-vat-vatodv-relief-for-an-individual-entrepreneur-engaged-in-catering-and-food-service-activities.html https://azefinance.az/en/blog/3158-what-is-the-amount-of-the-vat-vatodv-relief-for-an-individual-entrepreneur-engaged-in-catering-and-food-service-activities.html Mühasib Fri, 14 Aug 2026 10:44:18 +0400 What is the amount of the VAT (VAT/ÖDV) relief for an individual entrepreneur engaged in catering and food service activities?

]]> [allow-turbo]What is the amount of the VAT (VAT/ÖDV) relief for an individual entrepreneur engaged in catering and food service activities?

An individual entrepreneur engaged in catering and food service activities is registered as a VAT payer. Starting from 2026, a number of amendments were introduced to the Tax Code concerning catering activities, including a VAT relief for cashless turnover. In January 2026, the entrepreneur’s turnover amounted to AZN 80,000, of which AZN 30,000 was generated from customer payments made through a POS terminal. In this case, what is the amount of VAT relief applicable to the taxpayer for January 2026?

According to the State Tax Service under the Ministry of Economy, starting from January 1, 2026, pursuant to the amendment to Article 174.5 of the Tax Code, for a period of three years, 50% of the turnover of persons engaged in catering activities, generated from cashless payments made through a POS terminal for services provided to the public during the reporting period, is deducted from their total taxable turnover. Cashless payments must be made through a POS terminal integrated with the cash register in a unified operating system.

At the same time, starting from January 1, 2026, pursuant to the amendment to Article 102.1.41 of the Tax Code, income received by individuals engaged in catering activities as a result of the reduction of the VAT amount in accordance with Article 174.5, when calculating VAT payable to the state budget, is exempt from income tax.

Accordingly, if the cashless payments of a VAT-registered individual entrepreneur engaged in catering activities are made through a POS terminal integrated with the cash register in a unified operating system, 50% of the turnover generated from cashless POS-terminal payments for services provided to the public is deducted from the total taxable turnover:

AZN 30,000 × 50% = AZN 15,000

The remaining amount:

AZN 80,000 − AZN 15,000 = AZN 65,000

is subject to VAT at a rate of 18%.

In addition, the AZN 15,000 income resulting from the reduction of the VAT amount is exempt from income tax.

Legal basis: Articles 106.1.34 and 174.5 of the Tax Code.]]>[/allow-turbo] [allow-dzen]What is the amount of the VAT (VAT/ÖDV) relief for an individual entrepreneur engaged in catering and food service activities?

An individual entrepreneur engaged in catering and food service activities is registered as a VAT payer. Starting from 2026, a number of amendments were introduced to the Tax Code concerning catering activities, including a VAT relief for cashless turnover. In January 2026, the entrepreneur’s turnover amounted to AZN 80,000, of which AZN 30,000 was generated from customer payments made through a POS terminal. In this case, what is the amount of VAT relief applicable to the taxpayer for January 2026?

According to the State Tax Service under the Ministry of Economy, starting from January 1, 2026, pursuant to the amendment to Article 174.5 of the Tax Code, for a period of three years, 50% of the turnover of persons engaged in catering activities, generated from cashless payments made through a POS terminal for services provided to the public during the reporting period, is deducted from their total taxable turnover. Cashless payments must be made through a POS terminal integrated with the cash register in a unified operating system.

At the same time, starting from January 1, 2026, pursuant to the amendment to Article 102.1.41 of the Tax Code, income received by individuals engaged in catering activities as a result of the reduction of the VAT amount in accordance with Article 174.5, when calculating VAT payable to the state budget, is exempt from income tax.

Accordingly, if the cashless payments of a VAT-registered individual entrepreneur engaged in catering activities are made through a POS terminal integrated with the cash register in a unified operating system, 50% of the turnover generated from cashless POS-terminal payments for services provided to the public is deducted from the total taxable turnover:

AZN 30,000 × 50% = AZN 15,000

The remaining amount:

AZN 80,000 − AZN 15,000 = AZN 65,000

is subject to VAT at a rate of 18%.

In addition, the AZN 15,000 income resulting from the reduction of the VAT amount is exempt from income tax.

Legal basis: Articles 106.1.34 and 174.5 of the Tax Code.]]>[/allow-dzen] [/fullrss] [yandexrss] https://azefinance.az/en/blog/3158-what-is-the-amount-of-the-vat-vatodv-relief-for-an-individual-entrepreneur-engaged-in-catering-and-food-service-activities.html What is the amount of the VAT (VAT/ÖDV) relief for an individual entrepreneur engaged in catering and food service activities?

Blog Fri, 14 Aug 2026 10:44:18 +0400 What is the amount of the VAT (VAT/ÖDV) relief for an individual entrepreneur engaged in catering and food service activities?

An individual entrepreneur engaged in catering and food service activities is registered as a VAT payer. Starting from 2026, a number of amendments were introduced to the Tax Code concerning catering activities, including a VAT relief for cashless turnover. In January 2026, the entrepreneur’s turnover amounted to AZN 80,000, of which AZN 30,000 was generated from customer payments made through a POS terminal. In this case, what is the amount of VAT relief applicable to the taxpayer for January 2026?

According to the State Tax Service under the Ministry of Economy, starting from January 1, 2026, pursuant to the amendment to Article 174.5 of the Tax Code, for a period of three years, 50% of the turnover of persons engaged in catering activities, generated from cashless payments made through a POS terminal for services provided to the public during the reporting period, is deducted from their total taxable turnover. Cashless payments must be made through a POS terminal integrated with the cash register in a unified operating system.

At the same time, starting from January 1, 2026, pursuant to the amendment to Article 102.1.41 of the Tax Code, income received by individuals engaged in catering activities as a result of the reduction of the VAT amount in accordance with Article 174.5, when calculating VAT payable to the state budget, is exempt from income tax.

Accordingly, if the cashless payments of a VAT-registered individual entrepreneur engaged in catering activities are made through a POS terminal integrated with the cash register in a unified operating system, 50% of the turnover generated from cashless POS-terminal payments for services provided to the public is deducted from the total taxable turnover:

AZN 30,000 × 50% = AZN 15,000

The remaining amount:

AZN 80,000 − AZN 15,000 = AZN 65,000

is subject to VAT at a rate of 18%.

In addition, the AZN 15,000 income resulting from the reduction of the VAT amount is exempt from income tax.

Legal basis: Articles 106.1.34 and 174.5 of the Tax Code. [allow-turbo]What is the amount of the VAT (VAT/ÖDV) relief for an individual entrepreneur engaged in catering and food service activities?

An individual entrepreneur engaged in catering and food service activities is registered as a VAT payer. Starting from 2026, a number of amendments were introduced to the Tax Code concerning catering activities, including a VAT relief for cashless turnover. In January 2026, the entrepreneur’s turnover amounted to AZN 80,000, of which AZN 30,000 was generated from customer payments made through a POS terminal. In this case, what is the amount of VAT relief applicable to the taxpayer for January 2026?

According to the State Tax Service under the Ministry of Economy, starting from January 1, 2026, pursuant to the amendment to Article 174.5 of the Tax Code, for a period of three years, 50% of the turnover of persons engaged in catering activities, generated from cashless payments made through a POS terminal for services provided to the public during the reporting period, is deducted from their total taxable turnover. Cashless payments must be made through a POS terminal integrated with the cash register in a unified operating system.

At the same time, starting from January 1, 2026, pursuant to the amendment to Article 102.1.41 of the Tax Code, income received by individuals engaged in catering activities as a result of the reduction of the VAT amount in accordance with Article 174.5, when calculating VAT payable to the state budget, is exempt from income tax.

Accordingly, if the cashless payments of a VAT-registered individual entrepreneur engaged in catering activities are made through a POS terminal integrated with the cash register in a unified operating system, 50% of the turnover generated from cashless POS-terminal payments for services provided to the public is deducted from the total taxable turnover:

AZN 30,000 × 50% = AZN 15,000

The remaining amount:

AZN 80,000 − AZN 15,000 = AZN 65,000

is subject to VAT at a rate of 18%.

In addition, the AZN 15,000 income resulting from the reduction of the VAT amount is exempt from income tax.

Legal basis: Articles 106.1.34 and 174.5 of the Tax Code.]]>[/allow-turbo] [allow-dzen]What is the amount of the VAT (VAT/ÖDV) relief for an individual entrepreneur engaged in catering and food service activities?

An individual entrepreneur engaged in catering and food service activities is registered as a VAT payer. Starting from 2026, a number of amendments were introduced to the Tax Code concerning catering activities, including a VAT relief for cashless turnover. In January 2026, the entrepreneur’s turnover amounted to AZN 80,000, of which AZN 30,000 was generated from customer payments made through a POS terminal. In this case, what is the amount of VAT relief applicable to the taxpayer for January 2026?

According to the State Tax Service under the Ministry of Economy, starting from January 1, 2026, pursuant to the amendment to Article 174.5 of the Tax Code, for a period of three years, 50% of the turnover of persons engaged in catering activities, generated from cashless payments made through a POS terminal for services provided to the public during the reporting period, is deducted from their total taxable turnover. Cashless payments must be made through a POS terminal integrated with the cash register in a unified operating system.

At the same time, starting from January 1, 2026, pursuant to the amendment to Article 102.1.41 of the Tax Code, income received by individuals engaged in catering activities as a result of the reduction of the VAT amount in accordance with Article 174.5, when calculating VAT payable to the state budget, is exempt from income tax.

Accordingly, if the cashless payments of a VAT-registered individual entrepreneur engaged in catering activities are made through a POS terminal integrated with the cash register in a unified operating system, 50% of the turnover generated from cashless POS-terminal payments for services provided to the public is deducted from the total taxable turnover:

AZN 30,000 × 50% = AZN 15,000

The remaining amount:

AZN 80,000 − AZN 15,000 = AZN 65,000

is subject to VAT at a rate of 18%.

In addition, the AZN 15,000 income resulting from the reduction of the VAT amount is exempt from income tax.

Legal basis: Articles 106.1.34 and 174.5 of the Tax Code.]]>[/allow-dzen] [/yandexrss][shortrss] https://azefinance.az/en/blog/3157-can-a-foreigner-get-a-refund-of-the-vat-paid-for-medical-services.html https://azefinance.az/en/blog/3157-can-a-foreigner-get-a-refund-of-the-vat-paid-for-medical-services.html Can a foreigner get a refund of the VAT paid for medical services?

[allow-turbo]Can a foreigner get a refund of the VAT paid for medical services?

A Turkish citizen residing in Azerbaijan visited a medical institution in Baku several months ago and paid for the medical services received in cash. The person asked whether the VAT paid could be refunded in this case.

According to the State Tax Service, VAT paid for medical services provided to foreign citizens and stateless persons may be refunded. However, one of the main conditions is that the payment must be made in a cashless form.

Therefore, if a Turkish citizen pays for medical services in Azerbaijan by a cashless method, the VAT paid may be refunded under the Tax Free regime when leaving the country, in accordance with the applicable rules.

Accordingly, if the medical services were paid for in cash, a VAT refund is not provided.

Legal basis: Article 165.3 of the Tax Code.]]>[/allow-turbo] Blog Mühasib Thu, 13 Aug 2026 10:25:34 +0400 [/shortrss] [fullrss] https://azefinance.az/en/blog/3157-can-a-foreigner-get-a-refund-of-the-vat-paid-for-medical-services.html https://azefinance.az/en/blog/3157-can-a-foreigner-get-a-refund-of-the-vat-paid-for-medical-services.html Mühasib Thu, 13 Aug 2026 10:25:34 +0400 Can a foreigner get a refund of the VAT paid for medical services?

]]> [allow-turbo]Can a foreigner get a refund of the VAT paid for medical services?

A Turkish citizen residing in Azerbaijan visited a medical institution in Baku several months ago and paid for the medical services received in cash. The person asked whether the VAT paid could be refunded in this case.

According to the State Tax Service, VAT paid for medical services provided to foreign citizens and stateless persons may be refunded. However, one of the main conditions is that the payment must be made in a cashless form.

Therefore, if a Turkish citizen pays for medical services in Azerbaijan by a cashless method, the VAT paid may be refunded under the Tax Free regime when leaving the country, in accordance with the applicable rules.

Accordingly, if the medical services were paid for in cash, a VAT refund is not provided.

Legal basis: Article 165.3 of the Tax Code.]]>[/allow-turbo] [allow-dzen]Can a foreigner get a refund of the VAT paid for medical services?

A Turkish citizen residing in Azerbaijan visited a medical institution in Baku several months ago and paid for the medical services received in cash. The person asked whether the VAT paid could be refunded in this case.

According to the State Tax Service, VAT paid for medical services provided to foreign citizens and stateless persons may be refunded. However, one of the main conditions is that the payment must be made in a cashless form.

Therefore, if a Turkish citizen pays for medical services in Azerbaijan by a cashless method, the VAT paid may be refunded under the Tax Free regime when leaving the country, in accordance with the applicable rules.

Accordingly, if the medical services were paid for in cash, a VAT refund is not provided.

Legal basis: Article 165.3 of the Tax Code.]]>[/allow-dzen] [/fullrss] [yandexrss] https://azefinance.az/en/blog/3157-can-a-foreigner-get-a-refund-of-the-vat-paid-for-medical-services.html Can a foreigner get a refund of the VAT paid for medical services?

Blog Thu, 13 Aug 2026 10:25:34 +0400 Can a foreigner get a refund of the VAT paid for medical services?

A Turkish citizen residing in Azerbaijan visited a medical institution in Baku several months ago and paid for the medical services received in cash. The person asked whether the VAT paid could be refunded in this case.

According to the State Tax Service, VAT paid for medical services provided to foreign citizens and stateless persons may be refunded. However, one of the main conditions is that the payment must be made in a cashless form.

Therefore, if a Turkish citizen pays for medical services in Azerbaijan by a cashless method, the VAT paid may be refunded under the Tax Free regime when leaving the country, in accordance with the applicable rules.

Accordingly, if the medical services were paid for in cash, a VAT refund is not provided.

Legal basis: Article 165.3 of the Tax Code. [allow-turbo]Can a foreigner get a refund of the VAT paid for medical services?

A Turkish citizen residing in Azerbaijan visited a medical institution in Baku several months ago and paid for the medical services received in cash. The person asked whether the VAT paid could be refunded in this case.

According to the State Tax Service, VAT paid for medical services provided to foreign citizens and stateless persons may be refunded. However, one of the main conditions is that the payment must be made in a cashless form.

Therefore, if a Turkish citizen pays for medical services in Azerbaijan by a cashless method, the VAT paid may be refunded under the Tax Free regime when leaving the country, in accordance with the applicable rules.

Accordingly, if the medical services were paid for in cash, a VAT refund is not provided.

Legal basis: Article 165.3 of the Tax Code.]]>[/allow-turbo] [allow-dzen]Can a foreigner get a refund of the VAT paid for medical services?

A Turkish citizen residing in Azerbaijan visited a medical institution in Baku several months ago and paid for the medical services received in cash. The person asked whether the VAT paid could be refunded in this case.

According to the State Tax Service, VAT paid for medical services provided to foreign citizens and stateless persons may be refunded. However, one of the main conditions is that the payment must be made in a cashless form.

Therefore, if a Turkish citizen pays for medical services in Azerbaijan by a cashless method, the VAT paid may be refunded under the Tax Free regime when leaving the country, in accordance with the applicable rules.

Accordingly, if the medical services were paid for in cash, a VAT refund is not provided.

Legal basis: Article 165.3 of the Tax Code.]]>[/allow-dzen] [/yandexrss][shortrss] https://azefinance.az/en/blog/3156-what-is-a-lease-agreement-needed-for-and-what-guarantees-does-it-provide-to-the-parties.html https://azefinance.az/en/blog/3156-what-is-a-lease-agreement-needed-for-and-what-guarantees-does-it-provide-to-the-parties.html What is a lease agreement needed for, and what guarantees does it provide to the parties?

[allow-turbo]What is a lease agreement needed for, and what guarantees does it provide to the parties?

I temporarily rent out my property to a relative who is an individual entrepreneur for residential purposes. For certain reasons, I do not want to register for tax purposes, and my relative will pay the tax himself. What happens if I do not conclude a lease agreement in this case? What is a lease agreement generally needed for?

The State Tax Service under the Ministry of Economy states that, pursuant to paragraph 1 of Article 7 of the Law of the Republic of Azerbaijan “On Lease”, the main document regulating the relationship between the lessor and the lessee is the lease agreement. The parties are liable under the legislation of the Republic of Azerbaijan and the terms of the agreement for failure to perform or improper performance of their obligations under the lease agreement, including unilateral amendment or termination of the agreement.

Income from the lease of movable and immovable property, where such income is considered income from an Azerbaijani source in accordance with Article 13.2.16 of the Tax Code, is subject to a 14% withholding tax. Income received from renting residential premises owned by individuals to other individuals (except hotels and accommodation facilities located in hotel-type properties) is subject to a 10% withholding tax. Entrepreneurs and individuals receiving income from non-business activities who make such payments are required to withhold the tax at source.

Under Article 92 of the Tax Code, individuals who make payments without withholding tax at source are liable, in accordance with the Tax Code, for failure to withhold and transfer the tax to the state budget.

Based on the circumstances stated in the inquiry, responsibility for failure to withhold tax at source from rental income rests with the person making the payment — namely, the lessee. Under Article 58.1 of the Tax Code, a taxpayer (lessee) committing such a violation may face a financial sanction amounting to 50% of the reduced or evaded tax amount (excluding additional tax assessed as a result of a desk tax audit). Under Article 59.1 of the Tax Code, if taxes are not paid within the prescribed period, interest of 0.1% of the unpaid tax or current tax payment is charged for each day past the payment deadline.

It is also stated that a lease agreement is a notarized document. By refusing to sign a document protecting their rights in the lease relationship, the lessor puts the exercise of those rights at risk. For example, if the lessee damages the property to the point of making it unusable, fails to pay the rent, or refuses to vacate the property despite the lessor’s request, having a lease agreement is essential for protecting the lessor’s rights.

Legal basis: Article 7 of the Law “On Lease” and Articles 58, 92, 124 and 150 of the Tax Code.]]>[/allow-turbo] Blog Mühasib Thu, 13 Aug 2026 09:35:32 +0400 [/shortrss] [fullrss] https://azefinance.az/en/blog/3156-what-is-a-lease-agreement-needed-for-and-what-guarantees-does-it-provide-to-the-parties.html https://azefinance.az/en/blog/3156-what-is-a-lease-agreement-needed-for-and-what-guarantees-does-it-provide-to-the-parties.html Mühasib Thu, 13 Aug 2026 09:35:32 +0400 What is a lease agreement needed for, and what guarantees does it provide to the parties?

]]> [allow-turbo]What is a lease agreement needed for, and what guarantees does it provide to the parties?

I temporarily rent out my property to a relative who is an individual entrepreneur for residential purposes. For certain reasons, I do not want to register for tax purposes, and my relative will pay the tax himself. What happens if I do not conclude a lease agreement in this case? What is a lease agreement generally needed for?

The State Tax Service under the Ministry of Economy states that, pursuant to paragraph 1 of Article 7 of the Law of the Republic of Azerbaijan “On Lease”, the main document regulating the relationship between the lessor and the lessee is the lease agreement. The parties are liable under the legislation of the Republic of Azerbaijan and the terms of the agreement for failure to perform or improper performance of their obligations under the lease agreement, including unilateral amendment or termination of the agreement.

Income from the lease of movable and immovable property, where such income is considered income from an Azerbaijani source in accordance with Article 13.2.16 of the Tax Code, is subject to a 14% withholding tax. Income received from renting residential premises owned by individuals to other individuals (except hotels and accommodation facilities located in hotel-type properties) is subject to a 10% withholding tax. Entrepreneurs and individuals receiving income from non-business activities who make such payments are required to withhold the tax at source.

Under Article 92 of the Tax Code, individuals who make payments without withholding tax at source are liable, in accordance with the Tax Code, for failure to withhold and transfer the tax to the state budget.

Based on the circumstances stated in the inquiry, responsibility for failure to withhold tax at source from rental income rests with the person making the payment — namely, the lessee. Under Article 58.1 of the Tax Code, a taxpayer (lessee) committing such a violation may face a financial sanction amounting to 50% of the reduced or evaded tax amount (excluding additional tax assessed as a result of a desk tax audit). Under Article 59.1 of the Tax Code, if taxes are not paid within the prescribed period, interest of 0.1% of the unpaid tax or current tax payment is charged for each day past the payment deadline.

It is also stated that a lease agreement is a notarized document. By refusing to sign a document protecting their rights in the lease relationship, the lessor puts the exercise of those rights at risk. For example, if the lessee damages the property to the point of making it unusable, fails to pay the rent, or refuses to vacate the property despite the lessor’s request, having a lease agreement is essential for protecting the lessor’s rights.

Legal basis: Article 7 of the Law “On Lease” and Articles 58, 92, 124 and 150 of the Tax Code.]]>[/allow-turbo] [allow-dzen]What is a lease agreement needed for, and what guarantees does it provide to the parties?

I temporarily rent out my property to a relative who is an individual entrepreneur for residential purposes. For certain reasons, I do not want to register for tax purposes, and my relative will pay the tax himself. What happens if I do not conclude a lease agreement in this case? What is a lease agreement generally needed for?

The State Tax Service under the Ministry of Economy states that, pursuant to paragraph 1 of Article 7 of the Law of the Republic of Azerbaijan “On Lease”, the main document regulating the relationship between the lessor and the lessee is the lease agreement. The parties are liable under the legislation of the Republic of Azerbaijan and the terms of the agreement for failure to perform or improper performance of their obligations under the lease agreement, including unilateral amendment or termination of the agreement.

Income from the lease of movable and immovable property, where such income is considered income from an Azerbaijani source in accordance with Article 13.2.16 of the Tax Code, is subject to a 14% withholding tax. Income received from renting residential premises owned by individuals to other individuals (except hotels and accommodation facilities located in hotel-type properties) is subject to a 10% withholding tax. Entrepreneurs and individuals receiving income from non-business activities who make such payments are required to withhold the tax at source.

Under Article 92 of the Tax Code, individuals who make payments without withholding tax at source are liable, in accordance with the Tax Code, for failure to withhold and transfer the tax to the state budget.

Based on the circumstances stated in the inquiry, responsibility for failure to withhold tax at source from rental income rests with the person making the payment — namely, the lessee. Under Article 58.1 of the Tax Code, a taxpayer (lessee) committing such a violation may face a financial sanction amounting to 50% of the reduced or evaded tax amount (excluding additional tax assessed as a result of a desk tax audit). Under Article 59.1 of the Tax Code, if taxes are not paid within the prescribed period, interest of 0.1% of the unpaid tax or current tax payment is charged for each day past the payment deadline.

It is also stated that a lease agreement is a notarized document. By refusing to sign a document protecting their rights in the lease relationship, the lessor puts the exercise of those rights at risk. For example, if the lessee damages the property to the point of making it unusable, fails to pay the rent, or refuses to vacate the property despite the lessor’s request, having a lease agreement is essential for protecting the lessor’s rights.

Legal basis: Article 7 of the Law “On Lease” and Articles 58, 92, 124 and 150 of the Tax Code.]]>[/allow-dzen] [/fullrss] [yandexrss] https://azefinance.az/en/blog/3156-what-is-a-lease-agreement-needed-for-and-what-guarantees-does-it-provide-to-the-parties.html What is a lease agreement needed for, and what guarantees does it provide to the parties?

Blog Thu, 13 Aug 2026 09:35:32 +0400 What is a lease agreement needed for, and what guarantees does it provide to the parties?

I temporarily rent out my property to a relative who is an individual entrepreneur for residential purposes. For certain reasons, I do not want to register for tax purposes, and my relative will pay the tax himself. What happens if I do not conclude a lease agreement in this case? What is a lease agreement generally needed for?

The State Tax Service under the Ministry of Economy states that, pursuant to paragraph 1 of Article 7 of the Law of the Republic of Azerbaijan “On Lease”, the main document regulating the relationship between the lessor and the lessee is the lease agreement. The parties are liable under the legislation of the Republic of Azerbaijan and the terms of the agreement for failure to perform or improper performance of their obligations under the lease agreement, including unilateral amendment or termination of the agreement.

Income from the lease of movable and immovable property, where such income is considered income from an Azerbaijani source in accordance with Article 13.2.16 of the Tax Code, is subject to a 14% withholding tax. Income received from renting residential premises owned by individuals to other individuals (except hotels and accommodation facilities located in hotel-type properties) is subject to a 10% withholding tax. Entrepreneurs and individuals receiving income from non-business activities who make such payments are required to withhold the tax at source.

Under Article 92 of the Tax Code, individuals who make payments without withholding tax at source are liable, in accordance with the Tax Code, for failure to withhold and transfer the tax to the state budget.

Based on the circumstances stated in the inquiry, responsibility for failure to withhold tax at source from rental income rests with the person making the payment — namely, the lessee. Under Article 58.1 of the Tax Code, a taxpayer (lessee) committing such a violation may face a financial sanction amounting to 50% of the reduced or evaded tax amount (excluding additional tax assessed as a result of a desk tax audit). Under Article 59.1 of the Tax Code, if taxes are not paid within the prescribed period, interest of 0.1% of the unpaid tax or current tax payment is charged for each day past the payment deadline.

It is also stated that a lease agreement is a notarized document. By refusing to sign a document protecting their rights in the lease relationship, the lessor puts the exercise of those rights at risk. For example, if the lessee damages the property to the point of making it unusable, fails to pay the rent, or refuses to vacate the property despite the lessor’s request, having a lease agreement is essential for protecting the lessor’s rights.

Legal basis: Article 7 of the Law “On Lease” and Articles 58, 92, 124 and 150 of the Tax Code. [allow-turbo]What is a lease agreement needed for, and what guarantees does it provide to the parties?

I temporarily rent out my property to a relative who is an individual entrepreneur for residential purposes. For certain reasons, I do not want to register for tax purposes, and my relative will pay the tax himself. What happens if I do not conclude a lease agreement in this case? What is a lease agreement generally needed for?

The State Tax Service under the Ministry of Economy states that, pursuant to paragraph 1 of Article 7 of the Law of the Republic of Azerbaijan “On Lease”, the main document regulating the relationship between the lessor and the lessee is the lease agreement. The parties are liable under the legislation of the Republic of Azerbaijan and the terms of the agreement for failure to perform or improper performance of their obligations under the lease agreement, including unilateral amendment or termination of the agreement.

Income from the lease of movable and immovable property, where such income is considered income from an Azerbaijani source in accordance with Article 13.2.16 of the Tax Code, is subject to a 14% withholding tax. Income received from renting residential premises owned by individuals to other individuals (except hotels and accommodation facilities located in hotel-type properties) is subject to a 10% withholding tax. Entrepreneurs and individuals receiving income from non-business activities who make such payments are required to withhold the tax at source.

Under Article 92 of the Tax Code, individuals who make payments without withholding tax at source are liable, in accordance with the Tax Code, for failure to withhold and transfer the tax to the state budget.

Based on the circumstances stated in the inquiry, responsibility for failure to withhold tax at source from rental income rests with the person making the payment — namely, the lessee. Under Article 58.1 of the Tax Code, a taxpayer (lessee) committing such a violation may face a financial sanction amounting to 50% of the reduced or evaded tax amount (excluding additional tax assessed as a result of a desk tax audit). Under Article 59.1 of the Tax Code, if taxes are not paid within the prescribed period, interest of 0.1% of the unpaid tax or current tax payment is charged for each day past the payment deadline.

It is also stated that a lease agreement is a notarized document. By refusing to sign a document protecting their rights in the lease relationship, the lessor puts the exercise of those rights at risk. For example, if the lessee damages the property to the point of making it unusable, fails to pay the rent, or refuses to vacate the property despite the lessor’s request, having a lease agreement is essential for protecting the lessor’s rights.

Legal basis: Article 7 of the Law “On Lease” and Articles 58, 92, 124 and 150 of the Tax Code.]]>[/allow-turbo] [allow-dzen]What is a lease agreement needed for, and what guarantees does it provide to the parties?

I temporarily rent out my property to a relative who is an individual entrepreneur for residential purposes. For certain reasons, I do not want to register for tax purposes, and my relative will pay the tax himself. What happens if I do not conclude a lease agreement in this case? What is a lease agreement generally needed for?

The State Tax Service under the Ministry of Economy states that, pursuant to paragraph 1 of Article 7 of the Law of the Republic of Azerbaijan “On Lease”, the main document regulating the relationship between the lessor and the lessee is the lease agreement. The parties are liable under the legislation of the Republic of Azerbaijan and the terms of the agreement for failure to perform or improper performance of their obligations under the lease agreement, including unilateral amendment or termination of the agreement.

Income from the lease of movable and immovable property, where such income is considered income from an Azerbaijani source in accordance with Article 13.2.16 of the Tax Code, is subject to a 14% withholding tax. Income received from renting residential premises owned by individuals to other individuals (except hotels and accommodation facilities located in hotel-type properties) is subject to a 10% withholding tax. Entrepreneurs and individuals receiving income from non-business activities who make such payments are required to withhold the tax at source.

Under Article 92 of the Tax Code, individuals who make payments without withholding tax at source are liable, in accordance with the Tax Code, for failure to withhold and transfer the tax to the state budget.

Based on the circumstances stated in the inquiry, responsibility for failure to withhold tax at source from rental income rests with the person making the payment — namely, the lessee. Under Article 58.1 of the Tax Code, a taxpayer (lessee) committing such a violation may face a financial sanction amounting to 50% of the reduced or evaded tax amount (excluding additional tax assessed as a result of a desk tax audit). Under Article 59.1 of the Tax Code, if taxes are not paid within the prescribed period, interest of 0.1% of the unpaid tax or current tax payment is charged for each day past the payment deadline.

It is also stated that a lease agreement is a notarized document. By refusing to sign a document protecting their rights in the lease relationship, the lessor puts the exercise of those rights at risk. For example, if the lessee damages the property to the point of making it unusable, fails to pay the rent, or refuses to vacate the property despite the lessor’s request, having a lease agreement is essential for protecting the lessor’s rights.

Legal basis: Article 7 of the Law “On Lease” and Articles 58, 92, 124 and 150 of the Tax Code.]]>[/allow-dzen] [/yandexrss][shortrss] https://azefinance.az/en/blog/3155-is-a-fine-imposed-on-a-person-operating-a-restaurant-without-being-registered-for-tax-purposes.html https://azefinance.az/en/blog/3155-is-a-fine-imposed-on-a-person-operating-a-restaurant-without-being-registered-for-tax-purposes.html Is a fine imposed on a person operating a restaurant without being registered for tax purposes?

[allow-turbo]Is a fine imposed on a person operating a restaurant without being registered for tax purposes?

Conducting business activities without being registered for tax purposes is contrary to the requirements of the legislation and may result in a financial sanction.

According to Article 33.4 of the Tax Code, an individual carrying out business activities without establishing a legal entity must apply to the tax authority and register for tax purposes before commencing the activity. In other words, before starting restaurant activities, the individual must obtain a TIN and be registered with the tax authority.

If a person fails to submit an application for tax registration by the day they commence their business activity, a financial sanction of AZN 200 is imposed pursuant to Article 58.2 of the Tax Code.

Therefore, individuals engaged in restaurant activities must register for tax purposes before starting their activities and fulfill their tax obligations within the deadlines established by legislation.

Legal basis: Articles 33.4 and 58.2 of the Tax Code.]]>[/allow-turbo] Blog Mühasib Wed, 12 Aug 2026 09:40:04 +0400 [/shortrss] [fullrss] https://azefinance.az/en/blog/3155-is-a-fine-imposed-on-a-person-operating-a-restaurant-without-being-registered-for-tax-purposes.html https://azefinance.az/en/blog/3155-is-a-fine-imposed-on-a-person-operating-a-restaurant-without-being-registered-for-tax-purposes.html Mühasib Wed, 12 Aug 2026 09:40:04 +0400 Is a fine imposed on a person operating a restaurant without being registered for tax purposes?

]]> [allow-turbo]Is a fine imposed on a person operating a restaurant without being registered for tax purposes?

Conducting business activities without being registered for tax purposes is contrary to the requirements of the legislation and may result in a financial sanction.

According to Article 33.4 of the Tax Code, an individual carrying out business activities without establishing a legal entity must apply to the tax authority and register for tax purposes before commencing the activity. In other words, before starting restaurant activities, the individual must obtain a TIN and be registered with the tax authority.

If a person fails to submit an application for tax registration by the day they commence their business activity, a financial sanction of AZN 200 is imposed pursuant to Article 58.2 of the Tax Code.

Therefore, individuals engaged in restaurant activities must register for tax purposes before starting their activities and fulfill their tax obligations within the deadlines established by legislation.

Legal basis: Articles 33.4 and 58.2 of the Tax Code.]]>[/allow-turbo] [allow-dzen]Is a fine imposed on a person operating a restaurant without being registered for tax purposes?

Conducting business activities without being registered for tax purposes is contrary to the requirements of the legislation and may result in a financial sanction.

According to Article 33.4 of the Tax Code, an individual carrying out business activities without establishing a legal entity must apply to the tax authority and register for tax purposes before commencing the activity. In other words, before starting restaurant activities, the individual must obtain a TIN and be registered with the tax authority.

If a person fails to submit an application for tax registration by the day they commence their business activity, a financial sanction of AZN 200 is imposed pursuant to Article 58.2 of the Tax Code.

Therefore, individuals engaged in restaurant activities must register for tax purposes before starting their activities and fulfill their tax obligations within the deadlines established by legislation.

Legal basis: Articles 33.4 and 58.2 of the Tax Code.]]>[/allow-dzen] [/fullrss] [yandexrss] https://azefinance.az/en/blog/3155-is-a-fine-imposed-on-a-person-operating-a-restaurant-without-being-registered-for-tax-purposes.html Is a fine imposed on a person operating a restaurant without being registered for tax purposes?

Blog Wed, 12 Aug 2026 09:40:04 +0400 Is a fine imposed on a person operating a restaurant without being registered for tax purposes?

Conducting business activities without being registered for tax purposes is contrary to the requirements of the legislation and may result in a financial sanction.

According to Article 33.4 of the Tax Code, an individual carrying out business activities without establishing a legal entity must apply to the tax authority and register for tax purposes before commencing the activity. In other words, before starting restaurant activities, the individual must obtain a TIN and be registered with the tax authority.

If a person fails to submit an application for tax registration by the day they commence their business activity, a financial sanction of AZN 200 is imposed pursuant to Article 58.2 of the Tax Code.

Therefore, individuals engaged in restaurant activities must register for tax purposes before starting their activities and fulfill their tax obligations within the deadlines established by legislation.

Legal basis: Articles 33.4 and 58.2 of the Tax Code. [allow-turbo]Is a fine imposed on a person operating a restaurant without being registered for tax purposes?

Conducting business activities without being registered for tax purposes is contrary to the requirements of the legislation and may result in a financial sanction.

According to Article 33.4 of the Tax Code, an individual carrying out business activities without establishing a legal entity must apply to the tax authority and register for tax purposes before commencing the activity. In other words, before starting restaurant activities, the individual must obtain a TIN and be registered with the tax authority.

If a person fails to submit an application for tax registration by the day they commence their business activity, a financial sanction of AZN 200 is imposed pursuant to Article 58.2 of the Tax Code.

Therefore, individuals engaged in restaurant activities must register for tax purposes before starting their activities and fulfill their tax obligations within the deadlines established by legislation.

Legal basis: Articles 33.4 and 58.2 of the Tax Code.]]>[/allow-turbo] [allow-dzen]Is a fine imposed on a person operating a restaurant without being registered for tax purposes?

Conducting business activities without being registered for tax purposes is contrary to the requirements of the legislation and may result in a financial sanction.

According to Article 33.4 of the Tax Code, an individual carrying out business activities without establishing a legal entity must apply to the tax authority and register for tax purposes before commencing the activity. In other words, before starting restaurant activities, the individual must obtain a TIN and be registered with the tax authority.

If a person fails to submit an application for tax registration by the day they commence their business activity, a financial sanction of AZN 200 is imposed pursuant to Article 58.2 of the Tax Code.

Therefore, individuals engaged in restaurant activities must register for tax purposes before starting their activities and fulfill their tax obligations within the deadlines established by legislation.

Legal basis: Articles 33.4 and 58.2 of the Tax Code.]]>[/allow-dzen] [/yandexrss][shortrss] https://azefinance.az/en/blog/3154-is-income-tax-withheld-from-compensation-for-unused-leave.html https://azefinance.az/en/blog/3154-is-income-tax-withheld-from-compensation-for-unused-leave.html Is income tax withheld from compensation for unused leave?

[allow-turbo]Is income tax withheld from compensation for unused leave?

Is income tax calculated when compensation for unused leave is paid to an employee at their primary place of employment?

When an employee is paid compensation for unused leave days, specific tax rules apply to the taxation of this amount.

When compensation for unused leave is paid, the compensation amounts relating to each full working year are calculated separately. In addition, compensation for unused leave relating to the current working year is also considered separately and is not added to the salary for the month in which the payment is made.

These compensation amounts are subject to personal income tax and mandatory state social insurance contributions. In other words, the fact that the compensation is paid separately from the salary does not exempt it from taxation.

For income tax purposes, a 200 AZN tax allowance established under Article 102.1.6 of the Tax Code is deducted from the compensation amount calculated separately for each working year. Income tax is then calculated on the remaining amount.

For example, if an employee receives 1,000 AZN in compensation for unused leave from a previous working year, a 200 AZN allowance is applied for income tax purposes, and taxation is calculated on the remaining 800 AZN.

Therefore, when compensation for unused leave is paid, it is important to determine which working year the compensation relates to and to calculate the compensation separately for each working year.]]>[/allow-turbo] Blog Mühasib Wed, 12 Aug 2026 09:32:04 +0400 [/shortrss] [fullrss] https://azefinance.az/en/blog/3154-is-income-tax-withheld-from-compensation-for-unused-leave.html https://azefinance.az/en/blog/3154-is-income-tax-withheld-from-compensation-for-unused-leave.html Mühasib Wed, 12 Aug 2026 09:32:04 +0400 Is income tax withheld from compensation for unused leave?

]]> [allow-turbo]Is income tax withheld from compensation for unused leave?

Is income tax calculated when compensation for unused leave is paid to an employee at their primary place of employment?

When an employee is paid compensation for unused leave days, specific tax rules apply to the taxation of this amount.

When compensation for unused leave is paid, the compensation amounts relating to each full working year are calculated separately. In addition, compensation for unused leave relating to the current working year is also considered separately and is not added to the salary for the month in which the payment is made.

These compensation amounts are subject to personal income tax and mandatory state social insurance contributions. In other words, the fact that the compensation is paid separately from the salary does not exempt it from taxation.

For income tax purposes, a 200 AZN tax allowance established under Article 102.1.6 of the Tax Code is deducted from the compensation amount calculated separately for each working year. Income tax is then calculated on the remaining amount.

For example, if an employee receives 1,000 AZN in compensation for unused leave from a previous working year, a 200 AZN allowance is applied for income tax purposes, and taxation is calculated on the remaining 800 AZN.

Therefore, when compensation for unused leave is paid, it is important to determine which working year the compensation relates to and to calculate the compensation separately for each working year.]]>[/allow-turbo] [allow-dzen]Is income tax withheld from compensation for unused leave?

Is income tax calculated when compensation for unused leave is paid to an employee at their primary place of employment?

When an employee is paid compensation for unused leave days, specific tax rules apply to the taxation of this amount.

When compensation for unused leave is paid, the compensation amounts relating to each full working year are calculated separately. In addition, compensation for unused leave relating to the current working year is also considered separately and is not added to the salary for the month in which the payment is made.

These compensation amounts are subject to personal income tax and mandatory state social insurance contributions. In other words, the fact that the compensation is paid separately from the salary does not exempt it from taxation.

For income tax purposes, a 200 AZN tax allowance established under Article 102.1.6 of the Tax Code is deducted from the compensation amount calculated separately for each working year. Income tax is then calculated on the remaining amount.

For example, if an employee receives 1,000 AZN in compensation for unused leave from a previous working year, a 200 AZN allowance is applied for income tax purposes, and taxation is calculated on the remaining 800 AZN.

Therefore, when compensation for unused leave is paid, it is important to determine which working year the compensation relates to and to calculate the compensation separately for each working year.]]>[/allow-dzen] [/fullrss] [yandexrss] https://azefinance.az/en/blog/3154-is-income-tax-withheld-from-compensation-for-unused-leave.html Is income tax withheld from compensation for unused leave?

Blog Wed, 12 Aug 2026 09:32:04 +0400 Is income tax withheld from compensation for unused leave?

Is income tax calculated when compensation for unused leave is paid to an employee at their primary place of employment?

When an employee is paid compensation for unused leave days, specific tax rules apply to the taxation of this amount.

When compensation for unused leave is paid, the compensation amounts relating to each full working year are calculated separately. In addition, compensation for unused leave relating to the current working year is also considered separately and is not added to the salary for the month in which the payment is made.

These compensation amounts are subject to personal income tax and mandatory state social insurance contributions. In other words, the fact that the compensation is paid separately from the salary does not exempt it from taxation.

For income tax purposes, a 200 AZN tax allowance established under Article 102.1.6 of the Tax Code is deducted from the compensation amount calculated separately for each working year. Income tax is then calculated on the remaining amount.

For example, if an employee receives 1,000 AZN in compensation for unused leave from a previous working year, a 200 AZN allowance is applied for income tax purposes, and taxation is calculated on the remaining 800 AZN.

Therefore, when compensation for unused leave is paid, it is important to determine which working year the compensation relates to and to calculate the compensation separately for each working year. [allow-turbo]Is income tax withheld from compensation for unused leave?

Is income tax calculated when compensation for unused leave is paid to an employee at their primary place of employment?

When an employee is paid compensation for unused leave days, specific tax rules apply to the taxation of this amount.

When compensation for unused leave is paid, the compensation amounts relating to each full working year are calculated separately. In addition, compensation for unused leave relating to the current working year is also considered separately and is not added to the salary for the month in which the payment is made.

These compensation amounts are subject to personal income tax and mandatory state social insurance contributions. In other words, the fact that the compensation is paid separately from the salary does not exempt it from taxation.

For income tax purposes, a 200 AZN tax allowance established under Article 102.1.6 of the Tax Code is deducted from the compensation amount calculated separately for each working year. Income tax is then calculated on the remaining amount.

For example, if an employee receives 1,000 AZN in compensation for unused leave from a previous working year, a 200 AZN allowance is applied for income tax purposes, and taxation is calculated on the remaining 800 AZN.

Therefore, when compensation for unused leave is paid, it is important to determine which working year the compensation relates to and to calculate the compensation separately for each working year.]]>[/allow-turbo] [allow-dzen]Is income tax withheld from compensation for unused leave?

Is income tax calculated when compensation for unused leave is paid to an employee at their primary place of employment?

When an employee is paid compensation for unused leave days, specific tax rules apply to the taxation of this amount.

When compensation for unused leave is paid, the compensation amounts relating to each full working year are calculated separately. In addition, compensation for unused leave relating to the current working year is also considered separately and is not added to the salary for the month in which the payment is made.

These compensation amounts are subject to personal income tax and mandatory state social insurance contributions. In other words, the fact that the compensation is paid separately from the salary does not exempt it from taxation.

For income tax purposes, a 200 AZN tax allowance established under Article 102.1.6 of the Tax Code is deducted from the compensation amount calculated separately for each working year. Income tax is then calculated on the remaining amount.

For example, if an employee receives 1,000 AZN in compensation for unused leave from a previous working year, a 200 AZN allowance is applied for income tax purposes, and taxation is calculated on the remaining 800 AZN.

Therefore, when compensation for unused leave is paid, it is important to determine which working year the compensation relates to and to calculate the compensation separately for each working year.]]>[/allow-dzen] [/yandexrss]