Azerbaijan

Ease of Doing Business in

Azerbaijan

This page summarizes Doing Business 2013 data for Azerbaijan. The first table lists the overall "Ease of Doing Business" rank (out of 185 economies) and the rankings by each topic. It also lists the economy's distance to frontier (DTF)** measure. The rest of the tables summarize the key indicators for each topic and benchmark against regional and high-income economy (OECD) averages.

Economy Overview

Region Eastern Europe & Central Asia
Income Category Upper middle income
Population 9,168,000
GNI Per Capita (US$) 5,290
Doing Business 2013 Rank Doing Business 2012 Rank Change in Rank
67 66 down -1

Doing Business 2013 DTF** (% points) Doing Business 2012 DTF** (% points) Improvement in DTF** (% points)
62.8 62.7 down 0.1
Topic Rankings DB 2013 Rank DB 2012 Rank Change in Rank
Starting a Business 18 17 up -1
Dealing with Construction Permits 177 176 up -1
Getting Electricity 175 175 No change
Registering Property 9 6 up -3
Getting Credit 53 52 up -1
Protecting Investors 25 24 up -1
Paying Taxes 76 79 up 3
Trading Across Borders 169 169 No change
Enforcing Contracts 25 24 up -1
Resolving Insolvency 95 99 up 4

Economy Profile

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Paying Taxes

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This data shows the tax that a medium-size company must pay or withhold in a given year, as well as measures of the administrative burden in paying taxes. These measures include the number of payments an entrepreneur must make; the number of hours spent preparing, filing, and paying; and the percentage of their profits they must pay in taxes.

DB 2013 Rank 76 DB 2012 Rank 79 Change in Rank up3
DB 2013 DTF** (% points) 74.6 DB 2012 DTF** (% points) 74.0 Improvement in DTF** (% points) up0.6
Indicator Azerbaijan Eastern Europe & Central Asia OECD

The total number of tax payments per year. The indicator reflects the total number of taxes and contributions paid, the method of payment, the frequency of payment and the number of agencies involved for a standardized case during the second year of operation.

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Payments (number per year)
18 28 12

The time it takes to prepare, file and pay (or withhold) the corporate income tax, the value added tax and social security contributions (in hours per year).

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Time (hours per year)
214 260 176

The amount of taxes on profits paid by the business as a percentage of commercial profits.

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Profit tax (%)
12.9 9.1 15.2

The amount of taxes and mandatory contributions on labor paid by the business as a percentage of commercial profits.

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Labor tax and contributions (%)
24.8 22.1 23.8

The amount of taxes and mandatory contributions paid by the business as a percentage of commercial profit that are not already included in the categories of profit or labor taxes.

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Other taxes (%)
2.2 9.3 3.7

The total tax rate measures the amount of taxes and mandatory contributions payable by the business in the second year of operation, expressed as a share of commercial profits.

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Total tax rate (% profit)
40.0 40.5 42.7
Tax or mandatory contribution Payments (number) Notes on Payments Time (hours) Statutory tax rate Tax base Total tax rate (% profit) Notes on TTR
Social security contributions 12 97 22% gross salaries 24.8
Corporate income tax 1 online filing 60 20% taxable profit 12.9
Property Tax 1 online filing 1% annual average tax written down value of fixed assets 2
Tax on interest 0 10% interest income 0.3 included in other taxes
Vehicle tax 1 online filing AZN 0.02 per cubic meter of engine size 0.2
Land tax 1 online filing AZN 10 land area per 100 square meters 0.1
Value added tax (VAT) 1 online filing 57 18% goods and services 0 not included
Fuel tax 1 included in price of fuel 0 small amount
Totals: 18 214 40.0

** The distance to frontier (DTF) measure shows the distance of each economy to the "frontier," which represents the highest performance observed on each of the indicators across all economies included in Doing Business since each indicator was included in Doing Business. An economy’s distance to frontier is indicated on a scale from 0 to 100, where 0 represents the lowest performance and 100 the frontier. Read more...

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