Azerbaijan: Reduction in branch profit tax rate; VAT exemption for transfers of land use rights; tax incentives for green projects

Recent tax developments in Azerbaijan

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March 3, 2025

The government on January 1, 2025, reduced the rate of branch profit tax applicable to repatriations by branches or permanent establishments (PEs) of nonresident companies from 10% to 5%.

The government on that same date announced that the transfer of land use rights by legal entities and land rental payments are exempt from value added tax (VAT) effective January 1, 2025.

In addition, private partners in public-private partnership projects and producers engaged in renewable energy generation projects are exempt from corporate income tax, property tax, land tax, and VAT on imported goods and equipment, effective January 1, 2025.


For more information, contact a KPMG tax professional in Azerbaijan:

Rizvan Gubiyev | rgubiyev@kpmg.az

Ulvi Yusifov | uyusifov@kpmg.az

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