Azerbaijan Tax system – World Observatory on the Social Status of the Artist
Tax status
According to the new Tax Code entered into force on 1 January 2001, the simplified tax rates started to be applied. Pursuant to article 219.2 of this code, firms paying taxes under the simplified tax system shall not be liable for VAT, income tax, land tax or property tax.
Artists obtain an identification code, as they have registered in the tax departments attached to the Ministry of Taxes. Artists whose annual benefit do not exceed 5 000 000 manats, pay 2 % under the simplified tax system. But those who gain more than this amount pay 18 %.
Royalties and tax system
Royalties are handled on the basis of the increasing tax system according to the indexes pointed out in the Tax Code. According to this system, the amount of last royalties is summarized with the previous amounts and is liable to tax. The amount of the previous tax obligations to which the royalties were liable is derived from the final amount.
Exemptions for temporary import duties on cultural products
There are exemptions regarding temporary import duties on cultural products. They are adjusted under the Decree of the Cabinet of Ministers on the Regulations of complete or partial exemptions regarding temporary export (import) duties and taxes on goods exported or imported into the Republic of Azerbaijan (27 July 1998, No.160).
Exemptions on temporary import duties on equipment
There are no exemptions. Duties assessment is adjusted under the Decree No.80 of the Cabinet of Ministers (12 April 2001).
Regional and interregional customs duties agreements
There are no regional and interregional customs duties agreements governing the circulation of cultural products.
Provisions on inheritance tax
As works of art are inherited, they are not liable to the inheritance tax. If the inheritor uses these works of art and gets benefit from them, he/she should pay income tax according to the Code on Taxes.
Tax policies and taxation in the field of culture
The Ministry of Taxes and the Ministry of Finances are responsible for taxation and tax policies in all spheres, including the field of culture
