Azerbaijan

Azerbaijan

Cuts Branch Profit Tax Rate in Half

07 Jan 2025

On 4 December 2024, Azerbaijan amended its Tax Code to reduce the branch profits tax rate from 10 per cent to 5 per cent. This tax is imposed on the net profits of a branch or permanent establishment in Azerbaijan when transferred to a non-resident parent. The amendment came into effect on January 1, 2025.

  • Type:
    • Promotion and facilitation (Investment incentives)
  • Industry:
    • Manufacturing
    • Services
  • Sources:
    • Government official website, Qeyri-rezidentin daimi nümayəndəliyinin xalis mənfəətindən ödəmə mənbəyində tutulan verginin dərəcəsi azaldılıb, https://www.taxes.gov.az/az/post/3816, 07 Jan 2025