Republic of Azerbaijan - Profit Tax

• dividends paid by resident-enterprise - 10%;
• interests paid by a resident enterprise or by permanent establishment of the non resident or on behalf of such permanent establishment on the income generated from Azeri sources, with exception of interests paid on loans and deposits to resident banks, resident persons performing financial leasing or non-resident to non-resident banks or to permament establishment of the non-resident performing financial leasing in the Republic of Azerbaijan - 10%.
• insurance payments of the resident enterprise under risk insurance or reinsurance agreements - 4%;
• payments by a resident enterprise for telecommunication or transport services during international
• communications or shipments between the Republic of Azerbaijan and other states - 6%;
• income of a resident legal entity received from the fulfillment of works or provision of services, as well as other incomes received from the Azeri source with exception of income derived from employment - 10%;
• rental fees and royalty - 14%;
• income in the form of wages paid by a resident enterprise - according to the rates of monthly income tax.

• income of charitable organizations - except for the income from entrepreneurial activity;
• grants, membership fees and donations received by non-commercial organizations;
• income of international, interstate and intergovernmental organizations - except for the income received from the entrepreneurial activity;
• income of state power authorities, budget-funded organizations and local-governing authorities (except for the income from entrepreneurial activity);
• income of the National Bank of the Republic of Azerbaijan, its structures and State Oil Fund of the Azerbaijan Republic (with exception of profits made from allocation of its funds);
• received insurance payments (with exception of amounts of losses connected with each insurance case);
• income of special educational institutions established for education of persons with poor health - except for income, gained as a result of business activity;
• income generated from writing off tax debts to the state budget according to the legislation of Azerbaijan Republic;
• income tax rate of production enterprises owned by public organizations of disabled people is reduced by 50 percent if at least 50 percent of employees at such enterprises are disabled people.

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