Azerbaijan-Business Environment

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Published: 06 Oct 2008 17:50:09 PST

Standards

Domestic framework and international association: The institution responsible for laying down products standards and certification in Azerbaijan is called Azerbaijan State Standardisation and Metrology Centre (AZGOST).
In theory, norms of health and hygiene are applicable to the imported goods and this application is said to be carried out under the control of the country's Chamber of Commerce and Industry.
So far as certification is concerned, there is none of it and there is no request or application has been formulated for the moment.

Legal framework

Independence of justice: The judiciary in the country does not work independently and is corrupt and inefficient.
Equal treatment of nationals and foreigners: Azerbaijan is a republic with limited parliamentary democracy where President enjoys immense powers. Azerbaijan (official name: Republic of Azerbaijan) declared its independence from the former Soviet Union in August 1991.
President is the chief of the state and is elected by popular vote for a five-year term. President holds the executive powers. President appoints the P rime minister (who is the head of the government) and the Council of Ministers, to be confirmed by the National Assembly.
The legislature is unicameral in Azerbaijan. The parliament called National Assembly has 125 seats with its members being elected by popular vote to serve five-year terms. However, the National Assembly has been historically a weak body with little real influence. Azerbaijan has a strong presidential system in which the legislative and judicial branches have only limited independence. The people of Azerbaijan have very limited political rights.
The judiciary in the country does not work independently and is corrupt and inefficient. The constitution of 1995 is the main source of the law, with country's legal system based on civil law system. The judicial language of Azerbaijan is Azerbaijani.
Azerbaijan is not ruled by law. Judiciary does not guarantee an impartial trial to a foreign national. Azerbaijan faces a high degree of corruption. In fact, corruption is deeply entrenched throughout society with government officials rarely held accountable for engaging in corrupt practices. Significant parts of the economy are in the hands of a small corrupt elite, which severely limits equality of opportunity.
The language of justice: Azerbaijan is a republic with limited parliamentary democracy where President enjoys immense powers. Azerbaijan (official name: Republic of Azerbaijan) declared its independence from the former Soviet Union in August 1991.
President is the chief of the state and is elected by popular vote for a five-year term. President holds the executive powers. President appoints the P rime minister (who is the head of the government) and the Council of Ministers, to be confirmed by the National Assembly.
The legislature is unicameral in Azerbaijan. The parliament called National Assembly has 125 seats with its members being elected by popular vote to serve five-year terms. However, the National Assembly has been historically a weak body with little real influence. Azerbaijan has a strong presidential system in which the legislative and judicial branches have only limited independence. The people of Azerbaijan have very limited political rights.
The judiciary in the country does not work independently and is corrupt and inefficient. The constitution of 1995 is the main source of the law, with country's legal system based on civil law system. The judicial language of Azerbaijan is Azerbaijani.
Azerbaijan is not ruled by law. Judiciary does not guarantee an impartial trial to a foreign national. Azerbaijan faces a high degree of corruption. In fact, corruption is deeply entrenched throughout society with government officials rarely held accountable for engaging in corrupt practices. Significant parts of the economy are in the hands of a small corrupt elite, which severely limits equality of opportunity.
Having recourse to an interpreter: xx
Sources of the law and legal similarities: Azerbaijan is a republic with limited parliamentary democracy where President enjoys immense powers. Azerbaijan (official name: Republic of Azerbaijan) declared its independence from the former Soviet Union in August 1991.
President is the chief of the state and is elected by popular vote for a five-year term. President holds the executive powers. President appoints the P rime minister (who is the head of the government) and the Council of Ministers, to be confirmed by the National Assembly.
The legislature is unicameral in Azerbaijan. The parliament called National Assembly has 125 seats with its members being elected by popular vote to serve five-year terms. However, the National Assembly has been historically a weak body with little real influence. Azerbaijan has a strong presidential system in which the legislative and judicial branches have only limited independence. The people of Azerbaijan have very limited political rights.
The judiciary in the country does not work independently and is corrupt and inefficient. The constitution of 1995 is the main source of the law, with country's legal system based on civil law system. The judicial language of Azerbaijan is Azerbaijani.
Azerbaijan is not ruled by law. Judiciary does not guarantee an impartial trial to a foreign national. Azerbaijan faces a high degree of corruption. In fact, corruption is deeply entrenched throughout society with government officials rarely held accountable for engaging in corrupt practices. Significant parts of the economy are in the hands of a small corrupt elite, which severely limits equality of opportunity.

Intellectual Property

Domestic network and international agreements: After the declaration of independence of Azerbaijan from the USSR in 1991 this country created in 1993, the department of patents and trademarks under the aegis of the Committee of Technology and Sciences (Patent and License Department of the State Committee of Science and Technology)
Azerbaijan is a member of the WIPO and has signed the Convention of Paris (Industrial Property), the Convention of Bern (literary and artistic works), and the universal Convention of the copyright of authors and Eurasian Patent Organization.

Texts currently applying to patents/brands

Type	Text	Date entered into law	Period of validity	Remarks
Patent	Patent Act	1977	full patent: 20 years short term patent: 10 years

Tax rates

Consumption taxes

Tax rate: 18%
Reduced tax rate: Exports as well as financial and assurance services are VAT exempted.
Other consumption taxes

Corporate taxes

Tax rate for resident companies
Tax rate on long-term capital gains: Long-term capital gains are taxed at 24%.
System governing groups of companies and dividends paid by subsidiaries to their parent companies: The tax is withheld at the rate of 10%.
Tax rate on branches: The general profit tax rate is 24%. An additional branch remittance tax of 10% applies to profit remittances from the branch to the head office. The taxable base is net profits after taxes.

Individual taxes

Tax rate
Allowable deductions and tax credit

Double taxation treaties

Countries with whom a double taxation treaty have been signed: See the list of the convention signed on the website of the Ministry of Taxes.

Sources of fiscal information

Tax Authorities: Ministry of Taxes of the Republic of Azerbaijan

Accounting rules

Tax year: The financial year begins on 1st of January and ends on 31st December of each year.
Accounting standards
Accounting reports: Companies have to produce annually documents which present a precise analysis of the economic and financial situation.
Accountancy profession: Vneshexpertservice, Baku.
Certification and auditing: According to their status, companies should have to guarantee the exactness of their annual report.