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Our client is UK based and has an office in Baku. UK resident employees are seconded to Baku on a 8 weeks on and 3 weeks off basis. This has been continuing for approximately 3 years. 1 member of staff is located permanently in Baku. Differing practices are being adopted for the Rigblast staff assigned to Baku. In some instances only a percentage of the individuals income is being declared and subjected to tax within Azerbaijan whereas in others the entire salary is being subjected to Azerbaijan taxes. As a result of this practice some individuals are attaining a higher level of retained earnings than others following submission of their UK tax return claiming non resident status.

We need to establish what the correct position is with regard to the employees Baku tax on their salaries. Baku returns have been being submitted for the companies profits in Baku but we do not have the information available as to what has been deducted for salaries through these returns.

If you require any further details before being able to provide an estimate please let me know.




General Review

1. Resident and Non- Resident individuals are obligated to pay Income Tax.

2 Foreign Employees who are Tax Resident shall only be liable to pay Azerbaijan personal income Tax on their income earned as a direct result of their employment in the Azerbaijan Republic. Foreign Employees who are not Tax Resident shall not be liable to pay Azerbaijan personal income Tax.

The questions of the taxation of the Foreign Employees are ...

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