Author: np-post

Taxpayers engaged in freight transportation were previously not required to pay taxes, mandatory state social insurance, and compulsory health insurance fees for obtaining a “Distinguishing Mark.” These obligations were fulfilled by such individuals in accordance with the law. This provision was part of paragraph 4 of Article 221.4.7, which has now been removed.  Such taxpayers will bear:  State social insurance burden of 3% of amount below and equal to 200 AZN ( 6 AZN + 10% of amount above 200 AZN) for employees and 22% below and equal to 200 AZN ( 44 AZN + 15% of amount above...

Decision of the Cabinet of Ministers of the Republic of Azerbaijan on Determining the Stages for Transitioning Employment Contracts to Electronic Document Format by Employers were signed and published on September 17th, 2024. The decision provides a precise framework for employers regarding the implementation and transition of employment contracts to electronic document format. It outlines the specific timelines and categories of employers required to comply with this transition, ensuring clarity and accountability in the process. Employers are mandated to adhere to the stipulated deadlines...

Pursuant to Paragraph 8 of Article 119 of the Constitution of the Republic of Azerbaijan and for the purpose of optimizing the refund process of overpaid taxes, mandatory state social insurance, unemployment insurance, and compulsory health insurance payments, as well as addressing the issues and inconsistencies arising in this field, the Cabinet of Ministers of the Republic of Azerbaijan has issued the following decision: The following rules under the “Rules for the Refund of Overpaid Taxes, Mandatory State Social Insurance, Unemployment Insurance, and Compulsory Health Insurance Payments,...

This decision was approved by the Cabinet of Ministers of the Republic of Azerbaijan with Decision No. 381, dated September 3, 2024. According to Articles 85.1 and 85.2 of the Tax Code, payment deadlines for each tax are defined. Any changes to these established payment deadlines can only be made according to the rules outlined in the Tax Code, and the taxpayer must pay interest if the deadlines for tax payments (including current tax payments) are violated, as per the rules and conditions defined in the Tax Code. Article 85.10:When the conditions stipulated in Article 85.6 of the Tax Code...

This decision was approved by Decision No. 383 of the Cabinet of Ministers of the Republic of Azerbaijan dated September 3, 2024. According to this decision, a list of over 90 fixed assets subject to leasing agreements that are exempt from VAT has been established. Based on Article 164 of the Tax Code of the Republic of Azerbaijan, titled “Exemption from Taxation,” specifically subsection 164.1, the following provisions can be highlighted: Article 164.1: Exemptions from VAT Aside from the export of goods, the following types of supply, work, services, and imports are exempt...

Have your company ever faced with the situation that an HR of your company trying to solve some issue regarding the behavior, performance, communication or misunderstanding among employees, or trying to implement some new changes in terms of staff, its hiring process, termination, promotion, etc. But coming to justify and be sure about the compliance of the process with the effective up to dated legislation, or to explain it to staff, some possible gaps appear. The reason for this, is surely not having a related HR policy that cover all details and instructions that prepared in compliance with...

In August 2024, Azerbaijan introduced significant amendments to its Labor Code, focusing on the establishment and termination of labor relations, specifically employment contracts. Enhanced Employer Responsibilities Effective August 12, 2024, the amendments have brought several positive changes to the Labor Code, making the labor system more efficient and supportive for both employers and employees. Employers now face clearer and more comprehensive obligations. They must ensure timely and complete payments for compulsory medical insurance, state social insurance, unemployment insurance, and...

The Law “On Arbitration” dated December 26, 2023 was published on  January 25, 2024. Considering the fact that arbitration courts in Azerbaijan does not operate and the country implemented the decisions of the International Court of Arbitration, the adoption of this Law has significant role in our legislation history. The Decree of the President of the Republic of Azerbaijan  contains the necessary points on implementation of the Law and considers the preparation of draft law on Private International Law within six months.  As it is undeniable fact that the newly adopted Law “On Arbitration”...

Decree of the President of the Republic of Azerbaijan on the implementation of the “ Amendments to the Law of the Republic of Azerbaijan “On Accounting” and on the regulation of some related issues” was published on January 22, 2024. This Decree exactly indicates the effective dates for the implementation of electronic accounting that should be carried out by medium-sized enterprises. In  accordance with the Law of the Republic of Azerbaijan “On Accounting” the process should be implemented in the following stages: Persons who provides financials services defined by the Tax Code of the...