Azerbaijan joins OECD as partner country

  01 July 2021    Read: 319
  Azerbaijan joins OECD as partner country

Azerbaijan has officially joined the multilateral agreement of competent structures on the automatic exchange of country reports and its status as a partner country of the Organization for Economic Cooperation and Development (OECD) has been confirmed, reports citing the Azerbaijani Ministry of Economy.

The information has been posted on the organization's website.

By joining this agreement, Azerbaijan is able to assess transfer prices, risks of erosion of the taxable base and transfer of profit, as well as other kinds of activity of transnational companies in accordance with the requirements of international standards.

Moreover, Azerbaijan can create a more transparent tax environment in terms of economic and statistical analysis.

At the same time, Azerbaijan's accession to this agreement means the fulfillment of the requirements of Action 13 (Transfer Pricing Documentation), one of the four minimum standards envisaged in the project "Base Erosion and Profit Shifting" (BEPS).

The "Terms, form and procedure for submission of the report of an enterprise - resident of Azerbaijan, which is part of a group of transnational companies, to the tax body" were prepared and approved to effectively implement the agreement.

These rules can be found on the official website of the State Tax Service.

An enterprise operating in Azerbaijan, having a total income of more than 750 million euros in manat equivalent in a financial year, which is a member of a group of transnational companies and is a resident of Azerbaijan, must submit a corresponding notification to the tax body till June 30 while a report - 12 months after the financial year of the transnational group of companies for the timely fulfillment of obligations under the agreement.

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