Baku. TurkicWorld:

Based on the decision of the Ministry of Economy Board on July 28, 2023, amendments were made to the resolution on approval of the form and procedure for submitting to the tax authority by individuals and legal entities—residents—a certificate of a controlled foreign enterprise, TurkicWorld reports, referring to the State Tax Service of Azerbaijan.

A provision has been added to the rules on the inclusion of the profit of a controlled foreign enterprise in the taxable income of a person who is a resident of Azerbaijan. Thus, according to the new rules, the taxable income of a person who is considered a resident is calculated based on the specific weight (interest rate) of his share in the total share in this enterprise, taking into account the income and expenses of a controlled foreign enterprise. In addition, the income tax paid in the countries or territories where the controlled foreign enterprise is a resident is deducted from the income tax payable in Azerbaijan in accordance with the specific weight (percentage ratio) of the resident's share in the controlled enterprise in the total share.

Also, the articles "Procedure for submitting a certificate and documents attached to it", "Currency conversion", "Confidentiality of information", "Information exchange" and "Dispute settlement" were added to the rules.

Taxpayers can get more detailed information about the changes on the official website of the State Tax Service.