Azerbaijan’s Budget Bill for 2017 had been submitted to the parliament on 15 November 2015. The Bill specifies various measures on tax, customs and social security to be taken in 2017.
According to the plans stipulated on the Budget Bill, the ratio of collected taxes to taxes due will be increased. The opportunity of application of simplified tax will be extended. An effective tax control mechanism will be established by wider application of the electronic invoice system, stimulation of non-cash transactions and strengthening of the control over transactions with taxpayers operating in tax havens. The ratio of collected taxes to tax due will increase.
To achieve a high rating from the OECD Global Forum on Transparency and Exchange of Information for Tax Purposes the current legislation will be optimized. Also, the rules for the administration of double tax treaties will be simplified. The ratio of collected compulsory social security contributions to compulsory social security contributions due will be increased. By improving the investment environment, the tax revenues from the non-oil sector by, inter alia will increase. There will also be some reductions in the number of customs duty brackets.
The Budget Bill for 2017 will be effective from 1 January 2017 after getting approval from the parliament.
