On 11 July 2017, the President of the Republic of Azerbaijan approved the list (the List) of countries and territories with preferential taxation (Tax Haven Jurisdictions). The List contains 40 jurisdictions including Guernsey, British Virgin Islands, US Virgin Islands, Bermuda, Bahamas, Maldives, Cayman Islands, Antilles Islands (Netherland), Dominica, Jersey, Isle of Man, Hong Kong (China) and Liechtenstein.

According to the recent changes to the Tax Code of the Republic of Azerbaijan, direct or indirect payments to subjects established in a Tax Haven Jurisdiction by tax residents and permanent establishments of nonresidents created in Azerbaijan (PE) are considered as income derived from an Azerbaijani source and accordingly are subject to 10% withholding tax (WHT). This means that any direct or indirect payments from tax residents or non-residents' PEs to any entity set up in a Tax Haven Jurisdiction would be subject to WHT.

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