#

Ease of Doing Business in

Azerbaijan

Azerbaijan Download Profile (1751.1KB, pdf)
Region Europe & Central Asia
Income Category Upper middle income
Population 9,651,349
GNI Per Capita (US$) 6,560
City covered Baku

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 65 61 down
4
67.99 67.84 down
0.15
Starting a Business 5 5
-
97.74 97.75 down
0.01
Dealing with Construction Permits 127 121 down
6
63.63 64.13 down
0.50
Getting Electricity 105 104 down
1
64.83 64.10 up
0.73
Registering Property 22 21 down
1
82.52 82.55 down
0.03
Getting Credit 118 109 down
9
40.00 40.00
-
Protecting Minority Investors 32 30 down
2
65.00 65.00
-
Paying Taxes 40 41 up
1
83.52 83.08 up
0.44
Trading across Borders 83 85 up
2
72.28 71.48 up
0.80
Enforcing Contracts 44 43 down
1
65.66 65.66
-
Resolving Insolvency 86 82 down
4
44.77 44.68 up
0.09

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

DB 2017 Rank:

40

DB 2016 Rank:

41

Change in Rank:

up1

DB 2017 DTF (% points):

83.52

DB 2016 DTF (% points):

83.08

Change in DTF (% points):

up0.44

Indicator Azerbaijan Europe & Central Asia OECD high income
Payments (number per year) info_outline 6 17.6 10.9
Time (hours per year) info_outline 195 221.5 163.4
Total tax rate (% of profit) info_outline 39.8 33.8 40.9
Postfiling index (0-100) info_outline 81 71.2 85.1
Tax or mandatory contribution Payments (number) Notes on Payments Time (hours) Statutory tax rate Tax base Total tax rate (% of profit) Notes on TTR
Social security contributions 1 online 78 22% gross salaries 24.82
Corporate income tax 1 online 60 20% taxable profit 12.95
Property Tax 1 online 1% Annual average tax written down value of Fixed Assets 1.97
Tax on interest 0 10% interest income 0.26 included in other taxes
Land tax 1 online AZN 10 land area per 100 square meters 0.02
Value added tax (VAT) 1 online 57 18% goods and services 0.00 not included
Fuel tax 1 included in price of fuel 0.00 small amount
Employee paid - Social security 0 jointly 3% gross salaries 0.00 withheld
Employee paid - labor tax 0 jointly 14%-25% gross salaries 0.00 withheld
Totals: 6 195 39.8
  • Answer
    Profit tax (% of profit) 13.0
    Labor tax and contributions (% of profit) 24.8
    Other taxes (% of profit) 2.1
    Answer Score
    Postfiling index (0-100) 81.0
    VAT refunds 85.0
    Does VAT/GST exist? Yes
    Frequency of VAT/GST refund submission monthly
    Does a VAT/GST refund process exist per the case study? Yes
    Restrictions on VAT refund process Carry forward for 3 months
    Likelihood of VAT audit Likely
    Time to comply with VAT refund (hours) 7.5 85.0
    Time to obtain a VAT refund (weeks) 21.2 65.3
    Corporate income tax audits 84.4
    Does corporate income tax exist? Yes
    Likelihood of corporate income tax audit Likely
    Time to comply with a corporate income tax audit (hours) 10.0 84.4
    Time to complete a corporate income tax audit (weeks) 3.4 89.3
    Administrative appeal process
    First level administrative appeal authority Tax Appeal Council
    Is the appeal authority independent? Independent department within tax office
    Are appeal guidelines accessible to the public? Yes
    Source of appeal guidelines online/in printed publication/in person at tax office
    Is there a legal time limit for the appeal authority to issue a decision on the tax appeal? Yes
    Legal time limit 30 days

Notes:

Name of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table.

The hours for VAT include all the VAT and sales taxes applicable.

The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.

The postfiling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax audit and time to complete a corporate income tax audit.

N/A = Not applicable.