Recently, Azerbaijan has introduced Country-by-Country (CbC) reporting requirements and notification requirements for multinational entity groups (MNE groups) headquartered or operating in Azerbaijan. The CbC reporting rules are effective for financial years commencing on or after 1 January 2020. So the first CbC reporting financial period will be 2020 and the first reporting year will be 2021.
The CbC reporting requirements are applicable to Multinational Enterprises (MNEs) Groups with a consolidated revenue of not less than EUR 750 million during the year immediately preceding the Reporting Fiscal Year.
It is mandatory to submit the CbC report if the tax resident entity in Azerbaijan qualifies as an Ultimate Parent Entity (UPE) or Surrogate Parent Entity (SPE), based on the template issued by OECD.
The CbC report must be filed within 12 months from the end of the reporting fiscal year. CbC notifications must be filed must be submitted no later than 30 June after the end of a reporting financial Year by the resident taxpayer that is part of MNE.
Penalties for failure to file CbC reports or to comply with other CbC related obligations may include fines of AZN 500.
