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8.1.2. Other Taxes

The following table provides an overview of other taxes that may be imposed on a company doing business in the country.

Tax Type Rate(s) Notes
Capital Duty Nil There is no capital duty in Azerbaijan.
Payroll Tax Nil There is no payroll tax separately due by companies on their total payroll expenditure. Employers are required to withhold income tax and social security premiums on behalf of their employees.
Social Security Employer Contribution 15%-22% Employers are required to make social security contributions at the rate of 22% for income up to AZN 200. For income exceeding AZN 200, employers are required to make contributions of 15% on the excess plus AZN 44. These rates are effective from 1 January 2019 and apply for a seven-year period. Further, employers are also required to contribute 0.5% of the total gross salary towards unemployment insurance. Effective 1 January 2021, a 2% contribution is required towards health insurance for income up to AZN 8000 (reduced to 1% for the year 2021 if the employer is engaged in non-public sector and non-oil and gas industries) and 0.5% for income exceeding AZN 8000.
Social Security Employee Contribution 3%- 10% Employees are required to make social security contributions at the rate of 3% for income up to AZN 200. For income exceeding AZN 200, employees are required to make 10% contributions on the excess plus AZN 6. These rates are effective from 1 January 2019 and apply for a seven-year period. Further, employees are also required to contribute 0.5% of the total gross salary towards unemployment insurance. Effective 1 January 2021, a 2% contribution is required towards health insurance for income up to AZN 8000 (reduced to 1% for the year 2021 if the employer is engaged in non-public sector and non-oil and gas industries) and 0.5% for income exceeding AZN 8000.
Stamp Duty Nil There are no stamp duties. State notary fees are applicable on notarization of certain transactions.
Transfer Tax Nil No specific transfer tax is leviedon the transfer of immovable property. However, certain notary fees and other sale duties are applicable on the transfer of property.
Registration Duty NA NA
Property tax 1% Property tax is levied on both movable and immovable property owned by individuals and companies, with certain exemptions. Property tax of legal entities is imposed on the average annual book value of the taxable property at the rate of 1%. For resident companies, tangible assets on their balance sheet date are subject to property tax. For permanent establishments of non-resident companies in Azerbaijan, only tangible assets connected with the permanent establishment are subject to property tax.
Customs Duty 0% to 15% Import duties are levied on a wide range of products. Rates vary from 0% to 15%, based on the type of product. Full or partial relief is available. Under the PSA regime, certain duty exemptions/ relief are available.
Excise Duty Varies Excise duty is levied on the manufacture and import of goods into Azerbaijan. The rate of excise duty varies based on the type of product/ goods. Effective 1 January 2021, Azerbaijan announced the exemption of excise duty on production and import of platinum, gold, and related products.
Surtax NA NA
Asset Tax 1% An assets tax is levied on owners of fixed assets on the annual average net book value of fixed assets or the market price of the asset if the insurance value of assets exceeds the net book value.
Land Tax Varies Land tax is levied on Azerbaijan’s land resources that are in the possession of or are used by individuals or companies. Land tax rate varies as per the type of land and use.

There are certain taxes applicable to the companies engaged in specified industry sectors.