The draft, comprising 145 amendments to 45 articles, is aligned with the Socio-Economic Development Strategy 2022–2026 and the forthcoming 2026 budgetary framework.
Azerbaijan’s State Tax Service (STS) under the Ministry of Economy has unveiled a comprehensive package of amendments to the Tax Code, marking the next stage of the country’s fiscal reform agenda.
Speaking at the Milli Majlis Committee on Economic Policy, Industry and Entrepreneurship, STS head Orkhan Nazarli said the proposals aim to simplify tax administration, enhance transparency, and stimulate investment across key sectors.
The draft, comprising 145 amendments to 45 articles, is aligned with the Socio-Economic Development Strategy 2022–2026 and the forthcoming 2026 budgetary framework.
According to Nazarli, the reforms are designed to optimise taxpayer obligations while ensuring stable government revenues.
Key measures include extended tax incentives for agriculture, fisheries, automobile manufacturing, shipbuilding, public catering, and PPP projects; VAT exemptions for trucks, passenger vehicles, and fertilisers; and new dividend tax deductions for income repatriated from abroad.
The plan also expands non-cash payment incentives, doubles the VAT registration threshold for such transactions, and introduces a “horizontal monitoring” system to modernise tax control.
Special focus is placed on regional development, particularly the Nakhchivan Autonomous Republic and liberated territories where registered large taxpayers will be recognised as residents eligible for fiscal concessions.
The government estimates the reforms could generate an additional USD 623 million in budget revenue while encouraging capital repatriation and formalisation of the shadow economy.
If approved, the amendments will enter into force from 2026, reshaping Azerbaijan’s tax landscape toward a more transparent, investment-friendly model.
