The transformation to a new system of custom duties kick-started from 1st January 2018, where there has been a pretty hefty amount of changes brought in by Azerbaijan. Especially in the custom rates where – previously since 2001 custom rates such as 0, 0.5,1,3,5,10 and 15 percent were applied in the country but commencing from now on, only custom rates of 0, 5 and 15 percent will be applied on imported raw materials and goods, where the 15 percent will be applied specifically on the import of finished products to Azerbaijan. Furthermore, majority of the goods (Raw materials and equipment) are free from custom duties and the custom duties for import of finished products to Azerbaijan has been increased 15% from 2018 onwards. However, considering the new system, two documents will be losing their force (Rates of Custom Duties on Goods Imported to Azerbaijan and List of Goods Subject to Export Custom Duties and Rates of Export Custom Duties).
Related Posts
Azerbaijan signs MLI to implement tax treaty related BEPS measures
On 20 November 2023, Azerbaijan signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI), at a signing ceremony held in Baku. Azerbaijan has become the 102nd jurisdiction to join the BEPS Convention, which
Read MoreAzerbaijan plans to sign the BEPS MLI
On 17 March 2023, the Ministry of Taxes of Azerbaijan released a statement regarding the implementation of obligations under BEPS activities. According to the statement, Azerbaijan plans to sign the Multilateral Convention to Implement Tax Treaty
Read MoreAzerbaijan joins the inclusive framework on BEPS
On 16 December 2022, the Organization for Economic Cooperation and Development (OECD) announced that Azerbaijan joined the inclusive framework on Base Erosion and Profit Shifting (BEPS). Collaborating on an equal footing with all other members of
Read MoreAzerbaijan plans to increase CbC reporting penalty
On 16 November 2022, Azerbaijan submitted a proposal to the Parliament to increase the penalty for failure to submit country-by-country (CbC) reports. Accordingly, penalties for failure to file CbC reports or to comply with other CbC-related
Read MoreAzerbaijan approves law on joining BEPS inclusive framework
On 26 October 2022, the President of the Republic of Azerbaijan published a law ratifying the Inclusive Framework on Base Erosion and Profit Shifting (BEPS), which was approved by the President on 11 October 2022. The form of exchange of letters
Read MoreAzerbaijan modifies the Tax Code for TP, CbC Reporting, and CFC rules
On 16 November 2021, Azerbaijan has modified its Tax Code including three main changes regarding Transfer Pricing (TP), country by country (CbC) reports, and controlled foreign company (CFC) rules. The changes will be implemented from 1 January
Read More