Azerbaijan and the UK held the first round of negotiations in London on a new double taxation convention covering income and capital gains, with a second round scheduled for Baku in November to resolve remaining issues.
Azerbaijan and the UK held the first round of negotiations in London on a new convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains, according to a 10 June 2026 statement from Azerbaijan’s State Tax Service.
Delegations from Azerbaijan’s State Tax Service under the Ministry of Economy and HM Revenue and Customs discussed the main provisions of the draft convention, reaching agreement on most articles while bringing positions closer on several outstanding issues. The results were formalised through an Agreed Minutes document signed by both parties. A second round of talks is scheduled for Baku in November to resolve remaining issues.
On the sidelines, the Azerbaijani delegation met with John Sherman, Head of the Business, Assets and International Department at HMRC, to discuss the current state of bilateral tax cooperation and future development prospects, with both sides agreeing to expand experience-sharing and strengthen cooperation in international taxation, tax administration, and the fight against tax offences and criminal tax investigations.
The prospective agreement will need to be finalised, signed, and ratified before it can enter into force, at which point it will replace the existing 1994 tax treaty between the two countries.
