Income Tax 

Profit tax, as its name suggests, is a tax paid on the profit of an entrepreneur or legal entity (income-expenditure = profit). According to Article 105.1 of the CC of the Republic of Azerbaijan, the profit tax is 20%.
To calculate the income tax, you need to calculate 2 indicators: 

  • Income 
  • Expenses

 Income means, according to Article 104.1 of the Tax Code, all income of a taxpayer, including income received through his permanent representations outside the Republic of Azerbaijan, dividends, interest, royalties (except for tax-exempt income) received outside the Republic of Azerbaijan. .
Expenditures are the costs incurred to generate income. These costs do not include non-deductible expenses provided for in Article 109 of the CC. 

According to Article 106.1.20 of the CC, micro-business entities are exempt from 75% of profits.