According to the current legislation of the AZ, profit tax liabilities of an enterprise should be calculated and paid quarterly in advance. The responsibility for paying this tax lies with the dividend payer. Azerbaijani legal entities do not need to declare the receipt of dividends in their profit tax declaration. Individual shareholders Individual shareholders are liable to pay personal income tax on dividends received, at the normal statutory income tax rates. An individual will be responsible for submitting a tax return to facilitate calculation of the final tax liability.
Credit is given for the tax on dividends deducted at the source.
Tax is always withheld in the currency in which the dividend is paid. Double Taxation Treaties may reduce the rate at which dividend tax applies. The subject of VAT taxation is the turnover from the sale of goods and services rendered on the soil of the AZ, and the purchase of equipment and intangible assets. IVAT is payable on the vast majority of goods and products that are imported for subsequent resale in trade operations in Azerbaijan.