Azerbaijan: Tax measures effective in 2022

The provisions in the legislation enacted in late December 2021 includes changes to the tax law are effective 1 January 2022.

Tax measures effective in 2022

Legislation enacted in late December 2021 includes changes to the tax law.

The provisions are effective 1 January 2022 and concern:

  • The rules for determining a permanent establishment
  • The tax treatment of offshore income or revenue
  • Transfer pricing rules
  • Controlled foreign company (CFC) rules
  • Extension of the period for tax audits
  • New reporting requirements for certain groups of taxpayers
  • Changes to the profit tax calculation
  • Value added tax (VAT) exemption for certain electric cars
  • Property tax on certain means of transportation
  • Increased excise tax for alcohol, certain “big engine” automobiles

Read a January 2022 report [PDF 405 KB] prepared by the KPMG member firm in Azerbaijan


The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.