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Are there rules for taxing digital services |
Yes. |
|---|---|
|
Applicable date |
16/12/2016 |
|
Nature of tax |
When money is transferred by residents of the Republic of Azerbaijan to an account created in an electronic wallet belonging to non-residents, the local bank, branch of a foreign bank in the Republic of Azerbaijan or the national postal operator shall withhold a tax at the source of payment. |
|
Tax rate |
10% of the amount transferred from the resident to a non-resident's electronic wallet. |
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Affected business models/in-scope activities |
The tax is applied only to money transferred into electronic wallet of a non-resident. |
|
Revenue stream in scope |
Any value transmitted to a non-resident's electronic wallet. |
|
In scope of tax treaties? |
- |
|
Thresholds / de-minimis |
- |
|
Deduction or credit for recipient (DST only) |
- |
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Exemptions |
- |
|
Revenue or profits based tax |
- |
|
Revenue in scope |
- |
|
Who do these rules apply to |
Resident natural and legal entities. |
|
Reporting / Compliance obligations |
Reports should be submitted not later than on 20th of next month after the end of the quarter. |
|
OECD membership |
No. |
|
As at |
12/11/2020 |
| BDO local resources | BDO in Azerbaijan |