Azerbaijan’s Tax Service Discusses Key Reforms at German-Azerbaijani Chamber of Commerce Meeting

BAKU, Feb 3 (Reuters) - Representatives from Azerbaijan’s State Tax Service (STS) participated in the latest session of the working group on tax, customs, and legal issues hosted by the German-Azerbaijani Chamber of Commerce.

The meeting, attended by Rashad Nuriyev, head of the STS’s Tax Policy Department, and Eldar Madatov, department head, focused on upcoming amendments to Azerbaijan’s Tax Code, the country’s positioning in international rankings, and other key issues.

The STS emphasized the importance of such discussions for improving the country’s business environment and aligning its tax legislation with modern requirements. The planned reforms, set for 2025, aim to reduce the tax burden and enhance the efficiency of the tax system, with the introduction of lower tax rates and simplified procedures for businesses.

Taxpayer protection measures and enhanced interaction with tax authorities were also outlined, with a focus on streamlining the tax declaration and reporting process to facilitate business operations.

Notably, tax incentives will be introduced for certain categories of enterprises, including accredited IT companies, which will benefit from reduced corporate income tax rates.

Azerbaijan is also aiming to improve its standing in several international rankings. In the World Bank’s Ease of Doing Business Index, the country plans to boost its performance in the “Taxation” and “Entrepreneurship” categories, in line with the 2022-2023 roadmaps. Additionally, Azerbaijan has already seen an upgrade in its banking sector risk ratings by S&P Global, reflecting positive developments in the financial sector’s profile and stability.

Azerbaijan’s overall position in the Ease of Doing Business ranking has improved significantly, rising nine spots over two years to 74th place out of 193 countries, showcasing progress in enhancing its business climate.