Taxes in Azerbaijan: land tax.

1. taxpayers - individuals and legal entities that own or use land plots in the Republic of Azerbaijan on the basis of ownership, lease or other rights are land taxpayers. Land tax does not depend on income – it is calculated annually as a fixed payment. 2. tax object - land plots owned or leased in Azerbaijan are subject to land tax. Land under buildings and structures, as well as land allocated for their servicing, is also subject to land tax. 3. taxable base - general rule: the base is the size of the land plot (sq.m or hectare) and its designated purpose. For agricultural land, conditional points may apply in certain cases. 4. tax rate: agricultural land: – general rule: 2 manats per 100 sq.m. – land used for its intended purpose or unusable due to agro-technical reasons: 0.06 manat per 1 conditional point. non-agricultural land (industrial, construction, transport, trade, etc.): – rates range from 2 to 20 manats per 100 sq.m depending on purpose, size and region. – rates are higher in Baku and lower in other cities and regions. 5. exemptions and reliefs: not subject to land tax: – public use land. – land used by state and municipal authorities (except for business purposes). – state, forest and water fund land, as well as military land. additional incentives include: – temporary exemptions for residents of industrial and technology parks. – 7-year exemption for holders of an investment promotion certificate. – 7-year exemption for SME cluster companies. – long-term exemptions under certain state programs and projects. 6. tax calculation and payment procedure: legal entities: – calculate land tax annually. – the tax return must be submitted by 31 January of the following year. – advance payments are made in equal amounts no later than 15 August and 15 November. individuals: – the tax is calculated annually by the relevant authority. – notification is sent electronically. – payment is made in equal amounts no later than 15 August and 15 November. brief note land tax is a fixed annual tax calculated based on the size and purpose of the land. it does not depend on income. key factors are land designation, location and size.