Azerbaijan amends procedure for submitting reports on controlled foreign enterprise to tax authority
According to the decision of the Board of the Ministry of Economy of the Republic of Azerbaijan of 28 July 2023, the Decision "On approval of the form and procedure for submission of a report on controlled foreign enterprise to the tax authority by resident individuals" and legal entities" was amended, Azernews reports, citing the Ministry.
According to the State Tax Service, the provision "Inclusion of profit of a controlled foreign enterprise in the taxable income of a person considered a resident of the Republic of Azerbaijan" has been added to the rules.
Thus, according to the new rules, the taxable income of a person considered a resident of the Republic of Azerbaijan is calculated on the basis of the specific weight (percentage ratio) of his share in the total share, taking into account the income and expenses of a controlled foreign enterprise. Also, income tax paid in the countries or territories of which the controlled foreign enterprise is a resident shall be deducted from the income (profit) tax payable in the Republic of Azerbaijan in accordance with the specific weight (percentage) of the share in the enterprise controlled by the person deemed to be a resident of the Republic of Azerbaijan.
In addition, "Procedure for providing the certificate and documents attached thereto", "Currency conversion", "Confidentiality of information", "Exchange of information", and "Dispute resolution" were added to the rules.
Taxpayers can get more detailed information about the changes on the official website of the State Tax Service.
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