LLC taxes in Azerbaijan: simplified regime or general
A small company with annual turnover up to AZN 200,000 can pay 2% of turnover and pay no VAT or profit tax. Larger companies or those in excluded activities fall under the general regime: 20% profit tax and 18% VAT.
Simplified tax
Rate — 2% of turnover. Conditions: the company is not VAT-registered and turnover over the last 12 months does not exceed AZN 200,000; under the 2026 rules only 50% of cashless (POS) retail and service turnover counts toward this threshold. Reporting — quarterly return. Not eligible: wholesale trade, property rental, licensed activities, excise goods production and several others.
General regime
Profit tax — 20% of the difference between income and documented expenses. VAT — 18%, with mandatory registration once the turnover threshold is exceeded. Profit tax returns are annual, VAT returns monthly.
Payroll taxes
Income tax is withheld from salaries and social contributions are paid. From 2026 the private non-oil sector rates are 3% on income up to AZN 2,500 per month, 10% on the part from 2,500 to 8,000 and 14% above; the state and oil sector pays 14% up to AZN 2,500 and 25% on the excess.
What to choose
IT, consulting, services, retail and small turnover — simplified. Wholesale supplies, imports with VAT counterparties, rental — general regime. The regime can be changed, but with restrictions within a tax year, so decide before registration.
Frequently asked questions
Can I work with VAT-registered counterparties on the simplified regime?
Yes, but you do not charge VAT in your invoices, and the partner cannot deduct it. If your clients are large companies this may be a drawback.
When is VAT registration mandatory?
When turnover exceeds AZN 200,000 over 12 months, and for wholesale trade and other activities excluded from the simplified regime.
Verified 5 Nov 2026. Sources: taxes.gov.az, migration.gov.az, e-qanun.az.
Checklist: documents for a residence permit and an LLC in Azerbaijan
A 2-page PDF: what to prepare before you travel, where an apostille is needed and where notarisation is enough, and the order of filing.
- Document list for LLC registration and for each residence permit ground
- Table: apostille vs notarisation — by country
- Document list and timelines for every step
- Common mistakes that get a file returned
Related services
Free consultation
Tell us what you need and which country you are in now. We will propose a plan with timeline and cost.
Describe your task — we reply during business hours
Tell us what you need and which country you are in now. We will propose a plan with timeline and cost.