Tax residency in Azerbaijan. How to become?
- Emil Khudiyev (Lawyer)
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Tax residency issues are becoming increasingly important for companies and individuals. Azerbaijan, with its advantageous geographical location and growing economy, offers special conditions and opportunities for taxpayers.
Determining tax residency in Azerbaijan is a key aspect that affects the scope of taxation, access to benefits and the need to report to tax authorities.
In this article, we will consider the main criteria and conditions by which tax residency in Azerbaijan is determined, as well as important features that local foreign entrepreneurs should take into account.
Who is a tax resident in Azerbaijan?
According to the Tax Code of Azerbaijan, the following persons are recognized as residents:
1. An individual who meets at least one of the requirements below:
– actually located in the territory of Azerbaijan for more than 182 days a year;
– located abroad in the civil service of the Republic of Azerbaijan for 1 year;
– if a person is located in the territory of Azerbaijan or in a foreign state for less than 182 days in the following cases:
• If he/she has a permanent residence (PR) in Azerbaijan;
• If the center of vital interests of the person is in Azerbaijan;
• If he/she has a place of usual residence;
• If he/she has citizenship of the Republic of Azerbaijan;
2. A legal entity, if:
– it was established and carries out business activities in Azerbaijan;
– the place of management is in Azerbaijan. The place of management means the place of principal activity where the commercial decisions necessary for the exercise of management are made and where the day-to-day practical management is carried out, regardless of the location of the principal control organs.
Certificate of tax residency in Azerbaijan
The document confirming the status of a tax resident of Azerbaijan is the DTA-01 certificate. The DTA-01 certificate is issued by the State Tax Service of Azerbaijan. Such a certificate is valid for the current year.
To obtain it, you must submit a DTA-01 application to the tax authority (you can also read the rules for filling out the application). The application for obtaining a tax residency certificate of Azerbaijan can be submitted in paper or electronic form. This application must indicate the following:
– information about the state with which the resident plans to interact;
– details of the services/goods provided.
– contract details and the expected amount of income.
After submitting the application, the tax authority checks the resident status and, if confirmed, sends the certificate in electronic form to email, and upon request you can receive a paper copy with a seal.
If a foreign country requires a special form to prove residency, the applicant may attach it to the DTA-01 along with a notarized translation.
FAQ
Can the Tax Service refuse to issue a certificate of residency in Azerbaijan?
State Tax Service of the Republic of Azerbaijan may refuse to issue a certificate if the applicant is not a resident under Azerbaijani law or has provided false information in the DTA-01 form. In case of refusal, the applicant receives a notice stating the reasons and can reapply after correcting the deficiencies.
How EMZE can help you?
Have you read this article, but still not completely sure that you can get a tax residency certificate of Azerbaijan?
No problem! I am always ready to provide you with legal assistance, to consult you on tax issues in Azerbaijan.
You do not need to search for a lawyer anywhere else, just Call Emil!
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