Geography – The total area of the Republic of Azerbaijan is 86,600 square kilometers and borders the Caspian Sea to the east, Iran to the south and Russia to the north, as well as Georgia, Armenia and Turkey to the west. 20% of its territory (i.e. Nagorno-Karabakh and seven adjacent districts) was occupied by Armenia. Protection of personal data. The Personal Data Act aims to protect the individual`s right to privacy, which is recognized both in the Constitution of the Republic of Azerbaijan and in article 8 of the European Convention for the Protection of Human Rights and Fundamental Freedoms, to which Azerbaijan is a party. It should be noted that Azerbaijan has ratified the European Convention for the Protection of Individuals with regard to Automatic Processing of Personal Data. However, the Additional Protocol to this Convention on supervisory authorities and transborder data flows has not yet been complied with. Free Trade Zones – (Alat Free Economic Zone) – The establishment of free trade zones will play a central role in non-oil trade, which will accelerate the development of entrepreneurship and have a significant impact on the economy of the Republic of Azerbaijan. In accordance with the Law of the Republic of Azerbaijan on Special Economic Zones, which entered into force on 14 April 2009, it provides for preferential tax and customs arrangements for residents of special economic zones (but so far these zones have not been established). For companies operating in special economic zones, the following tax advantages apply: 7.3. The procedure of the public person of ownership of the property, rights of use and contracts is determined by its statutes. By adopting the presidential decree of 18.

January 2016, which approves regulations on investment promotion in Azerbaijan with investment certificates, tax and customs privileges are granted to foreign natural and legal persons (confirming the payment of at least 10% of the legal minimum investment under the investment project and submitting the business plan, supplemented by a copy of a tax registration certificate). The Government has launched the issuance of an Investment Incentive Certificate for investors who make investments above established thresholds in the production of agricultural, pharmaceutical and construction products. 6.2.7. sources of wealth accumulation, the basis, absence or availability of regulated prices for products (goods, works, services) legal entity under public law of financial activities; 8.1. The management arrangements for a legal person governed by public law shall be laid down in its statutes. 6.4. Employees of a legal entity under public law established by the competent body of the executive authority who provide services related to the recording of descriptive facts (perform legal acts) in the cases provided for by the Law of the Republic of Azerbaijan « On State Expenses »), in the case provided for by the Charter, government employees are equal. From 15 May 2018, it will be possible to issue entry visas at Baku International Airport via the self-service terminals. Currently, citizens of 15 countries, namely Bahrain, United Arab Emirates, South Korea, China, Iran, Israel, Indonesia, Kuwait, Qatar, Malaysia, Oman, Saudi Arabia, Singapore, Turkey and Japan can avail this service. « ASAN Service » – ASAN Service is a leading Azerbaijani model for the provision of public services, which has received great recognition for its transparency and functionality. 5.1. The legal person governed by public law has civil law and fulfils civil law obligations from the moment of registration of the State, the legal capacity of the legal person ends from the moment of completion of its liquidation.

4.1. The legal person under public law in the name of the State shall be established by the appropriate body (structure) established by the executive and in the name of the bodies of the municipality responsible for the municipality. Labour law and migration. The employment contract is the basis for the establishment of employment relationships. In general, the employment contract, as well as its termination and any amendments, enter into force after the registration of the termination of an employment contract entered into the special electronic information system using an extended electronic signature and the transmission of electronic information about it to the employer. The Labour Code of the Republic of Azerbaijan provides for general rights and obligations, including vacation rights, the salary system and methods, grounds for termination of the employment contract for employees and employers (related legal guarantees and financial consequences) and other matters. Corporate income tax (CIT) – Resident and non-resident companies (through their permanent establishment, such as agents or branches) are subject to corporate income tax (income tax) in Azerbaijan. Foreign legal entities staying in Azerbaijan for more than 182 cumulative days in a calendar year shall establish a representative office or branch in Azerbaijan. Local legal entities and branches or representative offices of foreign legal entities in Azerbaijan are taxed on profits, which are calculated as gross income from business activities minus deductible expenses at a flat rate of 20%. Branches and representative offices are taxed only on gross income from business activities in the territory of Azerbaijan minus deductible expenses, while other legal entities are taxed on their worldwide income. In addition to CITs paid by a permanent establishment of a foreign legal person, it is also subject to branch profits tax at the rate of 10% for each amount repatriated by that permanent establishment from its net profit. Tax on non-resident companies that do not have a permanent establishment in Azerbaijan is taxed at a rate of 10% of their gross profit, without deduction of expenses (« withholding tax »).

The law provides for a number of tax exemptions for specific types of companies. Since January 2013, the Tax Code provides only a few reductions for residents of industrial and technology parks by exempting them from income tax for a period of 7 years from registration as residents of the industrial and technology park. According to the latest amendments to the Tax Code, which will come into force from 1 January 2019, new categories of entrepreneurs will be established. The law provides for tax exemptions for taxes on income, profits and wealth, including salaries, to reduce corporate tax obligations and introduces a reduced and uniform simplified tax, while excluding simplified tax for certain categories of entrepreneurs. The new categories of entrepreneurs are micro and small entrepreneurs. In principle, 75% of the income and profits of micro-entrepreneurs are exempt from tax, as well as property tax and are allowed to apply 2 depreciation coefficients. According to the new amendments, micro-entrepreneurs are sole proprietors and legal entities (i) with average annual employees of between 1 and 10 persons and (ii) an annual income not exceeding AZN 200,000. Small business owners are sole proprietors and legal entities (i) with employees between 11 and 50 people and (ii) an annual income of between 200,000 and 3 million AZN.