Tax Services

Achieving your tax objectives in today’s global landscape requires experience and foresight. Make the best decisions to strategically move your business forward.

Why PwC’s Tax services?

Our experienced team possesses in-depth industry knowledge in Azerbaijan, and combined with our global network, this allows PwC to deliver appropriate tax and legal solutions, formulate strategies, create innovative tax planning, and help our clients to manage implementation and risk.

PwC is the leading provider of tax services in Azerbaijan, delivered in accordance with the high quality standards applied by PwC worldwide. Our tax team is able to provide professional assistance in matters relating to Tax Reporting and Strategy, as well as Tax Advisory Services. The principle of our services is the introduction of tax efficient structuring and Financing of operations, implementation of better control procedures and improved methods of administrating business.

Our team

Consisting of more than 25 tax specialists at the top of their profession, our Tax is the largest team in Azerbaijan.

We are organized around different aspects of tax, reflecting the need for in-depth specialist knowledge in each key area. We have developed specialized teams along industry lines, allowing us quickly assemble a team with the required tax and legal skills, as well as the relevant industry knowledge. This helps us to understand clearly our clients’ needs and makes us well positioned to assist them in resolving specific challenges, while also providing comprehensive recommendations rooted in our high-level view of the situation.

Our Services

General tax advisory services

  • Day-to-day advisory services related to the tax aspects of the business activity of the taxpayers in Azerbaijan and Azerbaijan business abroad
  • Reviews and analysis of agreements, transactions and payments from perspective of tax implications and risks’ analysis
  • Establishing a tax efficient structures for local group of companies

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International tax planning and structuring

  • Choose a tax-efficient ownership, management and operations structure
  • Analysis of inbound and outbound investments
  • Application of double tax treaties
  • Claiming tax incentives prescribed in the relevant double tax treaty

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Tax review services

  • Review the compliance obligations
  • Improve the company's tax "health" by reducing the risk of imposition of additional taxes and penalties in the course of a future tax audit
  • Minimize the tax burden through identification of material tax risk
  • Identify tax saving opportunities which may decrease your effective tax rate
  • Minimize potential disagreement with the tax authorities

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Developing an efficient tax function

  • Develop and implement a tax strategy
  • Tax risk management
  • A system of tax accounting and control

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Customization of strategy and operations in new economic environment – tax considerations

  • Streamline and simplify your business structure
  • Centralization of functions and their outsourcing to outside organizations
  • Sale of assets and business segament
  • Management of tax costs

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Verification of income and taxes withheld at the source

  • Review of income of an individual, declared and withheld at the source, such as rent income, dividends, interest, royalties etc., as well as exempted income
  • Preparation of letter of confirmation (statement), summarizing the information on the income source and taxes withheld at the source

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Personal income tax management and reporting

  • Individual tax planning including international tax advice and compliance assistance
  • Outbound assignments overseas
  • Tax effective structuring of remuneration packages
  • Development of long-term incentive plans as well as corporate pension plans from HR, tax and legal perspectives

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Transfer pricing

  • Prepare / localize / update transfer pricing documentation for all types of controlled transactions
  • Prepare benchmarking studies and monitoring reports and CbCR (country by country reports)
  • Transfer-pricing diagnostics
  • Review and justification of allocation keys of the general and administrative expenses / low value adding services

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Tax aspects of M&As

  • Carrying out pre-acquisition or pre-sale tax due-diligence;
  • Advise on necessary restructuring and solutions on resolving tax issues and ensuring tax efficient deal structuring and pre-completion guidance
  • Tax analysis of sale/purchase agreements and other deal documentation
  • Provision of post-deal integration services
  • Assistance with implementation

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Tax Controversy and Dispute Resolution

  • Managing and responding to investigations by tax authorities, audits, information requests and settlement discussions
  • Building “defense strategies” for your structuring and operations
  • Assistance with administrative appeals and appeals before the Board of Appeal under the President of the Republic of Azerbaijan and negotiations with the tax authorizes
  • Cross-border dispute resolution via litigation and litigation support, mutual agreement procedures (MAPs), arbitration, and alternative dispute resolution methods

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Accounting

  • Assistance in the initial set-up of the accounting books and records
  • Day-to-day bookkeeping and preparation of the monthly and annual accounts
  • Preparation/review of annual financial statements.
  • Preparation of accounting reports 
  • Support for year-end closing and statutory reporting
  • Preparation of  annual statutory financial statements, liaising with auditors 
  • Conversion of US GAAP/IFRS Trial Balance to local GAAP
  • Preparation of the chart of accounts
  • Bank transfers, cash management
  • Other services, e.g. reconstruction of accounting records, preparation of accounting records on the basis of other sources, etc.

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Payroll services

  • Initial set-up of the payroll system
  • Payroll calculation, including calculation of benefits, deductions, sickness and maternity benefits
  • Preparation of payroll reports for local accounting entry and HQ management
  • Preparation and submission of mandatory payroll reports
  • Assistance in transferring payments of wages and social security contributions
  • Correspondence with the tax authorities
  • Review of payroll processed
  • Registration and deregistration of individuals
  • Preparation or review of employment contracts and orders
  • Payroll accounting
  • Preparation of internal internal regulations related to payroll
  • Ensuring compliance with relevant labor law legislation

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Tax Compliance

  • Calculation, preparation and filing of all below statutory returns:
    • Corporate Income Tax
    • Value Added Tax
    • Withholding Tax compliance services
    • Personal Income Tax for employees and individuals 
    • Social Insurance Contribution
    • Property Tax
    • Road Tax
    • Excise tax
    • Other taxes
  • Tax budgeting
  • Tax management (establishment and control)
  • Preparation for upcoming tax audit
  • Implementation of tax technology tools
  • Financial analysis of business operation
  • Visibility of tax compliance process
  • Optimization of the existing tax system 
  • Registration/deregistration with the state authorities for different taxes
  • Issuance of VAT invoice and e-act of acceptance
  • Tax training for your personnel
  • Support in ERP and tax accounting software implementation
  • Tax Monitoring

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Global Mobility Services (IAS)

  • International assignees management designed to reduce costs of tax payments
  • Pre-assignment planning, conducting of pre- and post-departure tax consultations
  • Azerbaijan individual tax return completion
  • Repatriation assistance and on-going support in locations throughout the world
  • Tax registration/deregistration of physical persons
  • Obtaining of tax receipts

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Integrated Solutions (Whitening)

  • Diagnosis of the current state of business and tax operations, accounting system and processes, tax system, quality of document flow and control, and providing gap analysis report and Impact of change in tax strategy
  • Identifying/ Prioritizing focus areas
  • Designing target model/ Blueprint
  • Preparing accounting procedures and policies
  • Preparation of Control Frameworks
  • Actual implementation and monitoring - establishment of effective accounting and tax system, providing technology supported solutions, Trainings and education
  • Performance measurement with periodic monitoring reports through our proven technology (T3M)

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Contact us

Arif Guliyev

TLS Managing Director, PwC Azerbaijan

Tel: +994 (12) 497 2515

Elnur Mammadov

Director, Tax Reporting and Strategy Leader, PwC Azerbaijan

Tel: +994 (12) 4972515

Gunel Sadiyeva

Tax Advisory Leader, PwC Azerbaijan

Tel: +994 12 4972515

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