Nijat Imanov explains key changes in Azerbaijan's tax legislation

Recent amendments to Azerbaijan's Tax Code are aimed at optimizing the tax burden and improving the business environment, Nijat Imanov, head of the Main Department of the State Tax Service, said at the Taxation and Accounting Summit in Baku, according to Report.

Imanov noted that some aspects of the changes have been misunderstood by the public. "The main goal is not to increase the tax burden but to optimize it and further enhance the entrepreneurial environment. The new approach to income from employment is designed to create a more gradual and flexible tax regime," he said.

Addressing misconceptions regarding rental income, Imanov clarified that such income was already subject to taxation at a 14% rate. "With the new amendments, this rate has been reduced to 10%. The goal is to encourage legalization by lowering the tax burden in the rental market," he added.

Imanov also explained the mechanism of horizontal monitoring in tax control. "This mechanism is not a new type of audit and operates on a voluntary basis. Taxpayers who participate are covered by insurance against risks, and no on-site tax inspections are conducted during the period of participation. These approaches aim to strengthen mutual trust between tax authorities and businesses and promote greater transparency," he said.