Azerbaijani MP: ‘Opportunities will be created for increase of Turkish investments in Azerbaijan’

The elimination of double taxation between Azerbaijan and Türkiye will create conditions for the increase of Turkish investments in Azerbaijan and the formation of a favorable environment for the business activities of the entrepreneurs of the two countries, the Chairman of the Economic Policy, Industry, and Entrepreneurship Committee of Milli Majlis (Parliament), Tahir Mirkishili said at the plenary session of the Milli Majlis held today, Report informs.

“Thanks to the agreement signed in this regard, the opposite party will apply profit tax only for legal entities and income tax for individuals in relation to Azerbaijan. When a resident of one of the countries has income that can be taxed in another country, the country of his residence shall exempt him from income tax in the same amount. In other words, if an Azerbaijani citizen is subject to income tax in Türkiye, his/her tax obligations in our country will be reduced by the same amount," he noted.

Mirkishili added that ties between Azerbaijan and Türkiye are developing rapidly. In 2023, the trade turnover between the two countries rose by 31 percent compared to the previous year and reached $7.65 billion. Currently, 2,800 Azerbaijani companies are operating in Türkiye, and over 5,000 Turkish companies are operating in Azerbaijan.

As reported, the agreement between the Government of the Republic of Azerbaijan and the Government of the Republic of Türkiye on elimination of double taxation and prevention of tax evasion in relation to income taxes was signed in Ankara in February 2024.