Private sector representatives operating outside the oil and gas industry in Azerbaijan will soon be granted the opportunity to transfer funds from their Value Added Tax (VAT) deposit accounts directly to the State Social Protection Fund.
According to the Operative Information Center-OMM, this provision is part of the amendments to the Tax Code recently approved by President Ilham Aliyev.
Under the new legislation, effective from January 1, 2027, for a period of four years, non-state sector taxpayers—excluding those in the oil and gas sector—will be authorized to transfer funds from their VAT deposit accounts to the State Social Protection Fund. These transactions must be conducted in accordance with the rules and conditions established by the relevant executive authority.
This legislative change is part of the broader efforts by the government of Azerbaijan to optimize tax administration and enhance social security funding mechanisms. By allowing businesses to utilize VAT deposit balances for social contributions, the state aims to improve liquidity for private enterprises while ensuring the sustainability of the social protection system.
