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By Elnur Mammadov Azeri Observer Contributor Elnur Mammadov is the Managing Director of UTB. He has over 20 years of experience in the consulting industry, having held senior roles in tax and legal advisory at a leading international professional services firm. His work has extended beyond Azerbaijan, covering the wider Eurasia region with project experience in more than 50 countries. Elnur Mammadov is the Managing Director of UTB. He has over 20 years of experience in the consulting industry, having held senior roles in tax and legal advisory at a leading international professional...

As of 9 February 2026, amendments to the Law of the Republic of Azerbaijan “On State Registration and State Registry of Legal Entities” establish a new annual reporting requirement for legal entities. The purpose of these changes is to enhance the accuracy of registered data and promote greater transparency within the state registry. Under the revised provisions, following the end of each calendar year, legal entities are required to prepare, within one month, a statement confirming whether any amendments have been made to their registered information. This includes any changes to founding...

The recent request to the Constitutional Court concerned the interpretation of Articles 144.2 and 144.3 of the Labor Code of the Republic of Azerbaijan. While Article 144.2 guarantees compensation for all unused basic annual leave upon termination, Article 144.3 excludes compensation for unused additional and certain other types of leave, creating a legal contradiction. The constitutional review aimed to assess whether this restriction complies with the Constitution.  Constitutional and Legislative Framework Labor legislation establishes that annual leave consists of both basic and...

Following a new proposal by the Milli Majlis, the suspension of business inspections (the “moratorium”) now set to remain in effect until January 1, 2027. This move continues a decade-long policy of “inspection-free periods” initiated in 2015, designed to reduce bureaucratic pressure and foster a more self-regulating entrepreneurial landscape. Under the latest legislative update, the original expiration date of January 1, 2026, has been officially pushed back. This provides an additional 12 months for enterprises to focus on growth and investment without the interruption...

The President approved major legislative updates by decree in January 2026, focusing on the modernization of the Labor Code. The amendments affect a wide range of provisions regulating employment relationships, employee protections, leave entitlements, wage calculations, and termination of employment: 1. Worker with Family Responsibilities In line with ILO Convention No. 156, the concept of a “worker with family responsibilities-an employee whose opportunities for entering into employment, performing labor functions, or career advancement are limited due to providing care (assistance)...

The Unified Tax and Technology Businesses team is delighted to share the 2026 Tax Changes Bulletin. It provides detailed explanations of the key updates, complete with comparisons and practical examples. DOWNLOAD PDF

At UTB, we believe our success is measured by the strength of our relationships. As we look toward the opportunities of 2026, we’ve prepared this short video to express our gratitude for your continued trust and to share our vision for the year ahead. ...

The draft amendments to the Labor Code were discussed at the meeting of the Regional Affairs Committee of the Parliament. The proposed changes aim to align national labor legislation with international standards, enhance employee protections, and modernize employment regulation. 1. Alignment with International Labor Organization (ILO) Standards In line with several ILO conventions ratified by the Republic of Azerbaijan, the draft introduces new legal definitions into the Labor Code, including: employee with family responsibilities minimum wage 2. Transition from Part-Time to...

During the most recent session of the Parliament, a new draft law proposing critical amendments to the Code of Administrative Offenses was introduced and successfully passed in its first reading. These changes signal a shift toward international transparency and stricter compliance regarding the exchange of tax and financial data. Enhanced Penalties for Non-Compliance with International Inquiries The proposed amendments significantly increase the financial liability for persons not registered as taxpayers who fail to cooperate with international information exchange requests. This...

On May 21, 2025, a decision was made to revise the 4-MKT official statistical report form related to Social benefits, compensations, and pensions. The revision concerns Part I of the form, specifically Table A, which is titled “Monthly Social Benefits and Compensations.”The aim of this revision is to collect statistical data in a more detailed and accurate way. The revised rows in the table are listed below: 11 Disability caused by general illness, military service, work injury, occupational disease, being in a war zone, participation in eliminating the consequences...