However, the situation has recently changed. Tax registration should take place within one month of the commencement of activity. Termination of the RO and BO's activities should be reported to the authorities one month before the cessation of operations. Absence of the tax registration is deemed to be concealment of income for the purpose of avoiding taxation. The major taxes applicable under the statutory tax regime are outlined below.
Profit tax is computed on the basis of an enterprise's taxable profits.
The taxable base for the RO and BO should include only profits derived from taxable activity conducted in the AZ through the permanent representative office. 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.