Taxes in Azerbaijan Republic

Tax is the charge which has to be given by the citizen to the government in support. Tax must be paid on your income and on your assets according to each government. Government runs through proper tax payments by the people of that country.

What is the difference between Direct and Indirect Taxation?

Direct Taxation is the tax which is collected directly from the individuals who earns an income has to pay this tax examples of direct tax are ( corporation taxes, income taxes etc.)

Indirect taxation is the tax which is collected indirectly these taxes are known as indirect taxation. If you do a business you tend to pay (service tax, sales tax) for your sales. And in other areas we need to pay indirect taxes such as in the products ( Petrol , alcohol and cigarettes) when it comes to vehicles excise duty must be paid for vehicles, road tax etc.

Following are state taxes in Azerbaijan Republic:

• tax on the income of physical persons;
• tax on the profit of legal entities (with the exception of entities and enterprises that are the property of municipalities);
• value added tax;
• excise tax;
• property tax levied from legal persons;
• land use tax levied from legal persons;
• road fund taxes;
• mineral royalty tax;
• simplified tax.