Ministry of Taxes (Azerbaijan)

The State Tax Service of Azerbaijan Republic (Azerbaijani: Azərbaycan Respublikasının İqtisadiyyat Nazirliyi yanında Dövlət Vergi Xidməti) is the central executive body that ensures the implementation of state tax policy, fulfills timely and full collection of taxes and other revenues to the state budget and exercises state control within the framework of a single financial and budgetary policy implemented in the Republic of Azerbaijan.

State Tax Service of Azerbaijan Republic
Azərbaycan Respublikasının İqtisadiyyat Nazirliyi yanında Dövlət Vergi Xidməti
Coat of arms of Azerbaijan
Agency overview
FormedFebruary 11, 2000
Headquarters16 Landau Street, Baku, Azerbaijan Republic AZ1073
Agency executives
  • Minister of Taxes
  • Sahir Mammadkhanov, First Deputy Minister [1]
  • Matin Eynullayev, Deputy Minister [2]
  • Ilkin Valiyev, Deputy Minister [3]
Websitewww.taxes.gov.az

History

First Tax Inspection under the Ministry of Finance of Azerbaijan Democratic Republic was established by the decision of the Parliament dated 17 June 1919. Since that time the tax service began its activity.

From 1920 to 1991, tax matters in Azerbaijan were made part of the tax system of the Soviet Union.

After restoration of the independence in July 1990, a Tax Service was set up within the Ministry of Finance of the Republic of Azerbaijan to ensure timely and full collection of taxes and other mandatory payments in the Republic of Azerbaijan, as well as to ensure the state control over legal and physical persons' compliance with tax legislation and state pricing discipline.

In October 1991, Tax Service was separated from the Ministry of Finance for the purpose of improving supervision over compliance to tax legislation, strengthening the role of the state tax service in this area and ensuring the objectivity of its independent activities and supervision. As a result, the independent body, the State Tax Inspectorate of the Republic of Azerbaijan was established.

By the Decree of the President of the Republic of Azerbaijan dated 11 February 2000, the General State Tax Inspectorate was revoked and the Ministry of the Taxes was established to ensure proper state tax policy, timely and full collection of taxes and other mandatory payments as well as state control over that area.[4]

On October 23, 2019, the State Tax Service has been established under the Ministry of Economy of the Republic based on the Decree of the President of Azerbaijan on expanding the functions and structure of the Ministry of Economy.[5]

Duties

The Ministry carries out following duties as defined by the Statute of the Ministry of Taxes of the Republic of Azerbaijan.[6]

  • Ensuring supervision over proper calculation of state taxes and other budget revenues of the Republic of Azerbaijan within the authority of tax bodies, timely and full transfer of funds to the state budget and providing control over tax legislation compliance
  • Providing taxpayers with information on tax legislation and amendments made to them and giving explanations regarding calculation and payment of taxes
  • Ensuring  protection of taxpayers' rights and legitimate interests
  • Investigating issues of tax offences and taking appropriate measures within its competence to eliminate such cases
  • To execute other duties defined by the legislation of the Republic of Azerbaijan in accordance with the appointment of the tax authorities.

Functions

Statute of the Ministry of Taxes of the Republic of Azerbaijan prescribes following functions of the Ministry:[6]

  • Developing proposals for improving tax policy of the Republic of Azerbaijan
  • Participating in drafting legislation pertaining to taxation area
  • Organizing the work of state tax authorities in compliance with tax legislation of the Republic of Azerbaijan, proper calculation, timely and full transfer to the state budget of state taxes and other income, collection of which has been assigned to it by law.
  • Participating in the preparation of the tax revenue forecasts for to the state budget of the Republic of Azerbaijan
  • Preparing and implementing measures to ensure compliance with tax legislation of the Republic of Azerbaijan
  • Participating in the elaboration and implementation of development programs for state tax authorities of the Republic of Azerbaijan
  • Conducting tax accounting (calculated and received for its intended purpose) and producing reports to the President of the Republic of Azerbaijan, the Cabinet of Ministers of the Republic of Azerbaijan and the Ministry of Finance of the Republic of Azerbaijan
  • Collecting, analyzing, evaluating information in cases of tax violations, and providing suggestions to relevant authorities to eliminate the case and conditions leading to tax violations.
  • Maintaining register of taxpayers, their affiliates, representative offices or other units
  • Conducting, criminal tax investigations and carrying out operational and investigative activities in accordance with the law.
  • Preparing forms of tax returns, reports and other documents related to the calculation and payment of taxes and other revenues
  • Ensuring operation of a unified automated information system of the state tax authorities

Structure

According to the decree signed by the Azerbaijani President Ilham Aliyev on 24 July 2019,[7] the structure of the Ministry of Taxes has been approved as the following way:[8]

  • Main Department of National Income
  • Main Department of Tax Crime Primary Investigation
  • Main Department of Control of Import and Export Operations
  • Main Department of Control over Circulation of Excisable Goods and Marking
  • Main Department of Local Income of the City of Baku
  • Main Department of Work with Small Businesses in Baku
  • Call-Center (authorized as a main department)
  • Local offices (main offices, departments and divisions)

Training Centre

Training Centre of the Ministry of Taxes was established by the Decision No. 90 of the Cabinet of Ministers of the Republic of Azerbaijan as of June 5, 2002 on the basis of the Decree No. 539 on the application of the law of the Republic of Azerbaijan, on approval of the Regulation “On service in state tax authorities” signed by the president of the Republic of Azerbaijan, Heydar Aliyev.[9][10]

A new complex of the Training Center was inaugurated in the village of Nagarakhana of Shamakhi on September 13, 2011, with the participation of the President Ilham Aliyev. The aim of the Center is to carry out educational processes to improve the level of knowledge and vocational training of the employees of tax authorities, ensure practical work and management ability, master new technologies and techniques, as well as adapt training methods  to constantly changing working conditions.[11]

Programs to improve tax administration
  • State program on improvement of tax administration in the Republic of Azerbaijan (2005-2007)[12]

Information resources of the Ministry of Taxes
  • “Vergilər” (Taxes) online newspaper - has been published since February 11, 2000. “Vergiler.az” online newspaper has been launched since January 1, 2019, replacing the printed version of “Vergilər” newspaper. The online newspaper “Vergiler.az” is an online news resource that focuses on articles, interviews and news about innovations in taxation and also enlightens economic processes.[13]
  • "Taxes magazine of Azerbaijan" (Azerbaijani: Azərbaycanın vergi jurnalı) [14] was founded by the Ministry of Taxes on July 1, 2003. 158 pages  magazine is published quarterly with a circulation of 1,000 copies. The “Tax Magazine of Azerbaijan” is a regular publication of the Ministry of Taxes. The magazine mainly focuses on current issues, as well as general conceptual matters of taxation with the possibility of publishing articles related to other sectors of the economy.

International ratings

Azerbaijan ranks 25th among 190 countries in “Doing Business 2019” reflecting the business environment affordability assessment prepared by the World Bank. “Doing Business 2019” rated tax reforms implemented in the country through its “Starting business”[15] and “Paying Taxes”[16] indicators.

Azerbaijan has improved its ranking from 18 to 9 on “Starting a business” indicator[17] as well as moved up from 35th to 28th position on “Paying taxes”[17] indicator.

Azerbaijan's ranking on "Starting Business" and "Paying Taxes" indexes of Doing Business reports
“Starting Business” “Paying Taxes”
2015 12th 33rd
2016 7th 34th
2017 5th 40th
2018 18th 35th
2019 9th 28th

See also

References
  1. "Məmmədxanov Sahir Polad oğlu". Taxes.Gov.Az. Archived from the original on 2019-09-28. Retrieved 2019-12-02.
  2. "Mətin Balasən oğlu Eynullayev". Taxes.Gov.Az. Retrieved 2019-12-02.
  3. "İlkin Etibar oğlu Vəliyev". Taxes.Gov.Az. Retrieved 2019-12-02.
  4. "«Azərbaycan Respublikası Vergilər Nazirliyinin yaradılması haqqında» Azərbaycan Respublikası Prezidentinin 11 fevral 2000-ci il tarixli 281 N-li Fərmanı". Taxes.Gov.Az. Retrieved 2019-04-17.
  5. "Decree of the President of the Republic of Azerbaijan on expanding the functions and structure of the Ministry of Economy".
  6. "Azərbaycan Respublikasının Vergilər Nazirliyi haqqında Əsasnamənin təsdiq edilməsi barədə". www.e-qanun.az. Retrieved 2019-03-30.
  7. "Decree of the President Ilham Aliyev on the approval of the structure of the Ministry of Taxes". president.az (in Azerbaijani). Retrieved 2019-07-25.
  8. "Structure of the Ministry of Taxes". president.az (in Azerbaijani). Retrieved 2019-07-25.
  9. "Training Centre of the Ministry of Taxes". tedris.taxes.gov.az. Retrieved 2019-03-05.
  10. "90 - Azərbaycan Respublikası Vergilər Nazirliyinin Tədris Mərkəzinin yaradılması haqqında". www.e-qanun.az. Retrieved 2019-04-17.
  11. "Ilham Aliyev attended the opening of the Training Center of the Ministry of Taxes in Shamakhi". en.president.az. Retrieved 2019-03-05.
  12. "992 - Azərbaycan Respublikasında vergi inzibatçılığının təkmilləşdirilməsi Dövlət Proqramının (2005-2007-ci illər) təsdiq edilməsi haqqında". www.e-qanun.az. Retrieved 2019-03-30.
  13. "About the newspaper". Vergilər Qəzeti (in Azerbaijani). Retrieved 2019-03-05.
  14. "Media". Taxes.Gov.Az. Retrieved 2019-03-06.
  15. "Methodology for Starting a Business". World Bank. Retrieved 2019-03-30.
  16. "Methodology for Paying Taxes". World Bank. Retrieved 2019-03-30.
  17. "Explore Economies". World Bank. Retrieved 2019-03-30.
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