New Tax Code to be prepared in Azerbaijan

As of this year, work has been initiated on the preparation of the new Tax Code in Azerbaijan.

Azernews reports that this was stated by the Deputy Chief of the State Tax Service under the Ministry of Economy, Samira Musayeva.

"For this purpose, we are conducting a joint review with business subjects. The new code is not only about simplifying the language. We will also reevaluate the legislation. We are currently preparing the Road Map of the Code. We are conducting joint reviews with business subjects. We are also studying international experience ourselves, consulting companies."

"It is too early to say when the new code will be ready. But we have started the process. We don't want to delay its completion for many years. It would be frivolous to say when it will be ready without completing the preparation of the Road Map of the Code," she added

S. Musayeva also commented on the issue of VAT differentiation, which was brought up last year: "We have said many times in the National Assembly that the issue of differentiation can be seen as a positive step on the one hand. But we have an alternative to it. This is the "Recover VAT" project. We are currently looking at how we can stimulate this direction. The administration of this project is more manageable and favourable in terms of preventing abuses. But we still do not deny that there can be a differential rate. It is just not on our agenda today. When it is brought to the agenda, it will be considered for which products and rates it will be. But let me mention once again that we apply it in another form, that is, in the form of the "Recover VAT" project."