The Milli Majlis (National Assembly) of Azerbaijan has adopted a draft law on amendments to the Tax Code in the first reading during its plenary session held today.
Operative Information Center-OMM reports that the new legislation introduces significant financial incentives for taxpayers operating in the non-oil and gas sector, specifically targeting the private sector.
Under the amendments, starting from January 1, 2027, entrepreneurs will be granted the opportunity to pay mandatory state social insurance contributions (DSMF payments) for their employees using available funds from their VAT deposit accounts. This measure will remain in effect for a period of four years.
This mechanism will be regulated in accordance with the rules and conditions established by the relevant executive authority. The change is designed to increase cash flow (liquidity) for entrepreneurs in the private sector and alleviate their overall financial burden, fostering a more favorable investment climate in Azerbaijan.
The law is scheduled to come into force on January 1, 2027. Such legislative adjustments are part of the broader economic reforms in Azerbaijan aimed at diversifying the national economy, reducing the burden on non-oil businesses, and enhancing transparency in tax administration.
