Client Alert On The Law On Non Cash Settlements

On 16 December 2016 the President of the Republic of Azerbaijan signed the law On Non-Cash Settlements (the "Law").

Below is a general summary of the Law.

Definition of Non-Cash Settlements

Non-cash settlements are defined as follows:

1. Settlements from one bank account to another bank account, including using various payment instruments (payment cards, payment instructions) and payment means (mobile telephones, computers and other equipment);
2. Settlements using payment terminals;
3. Settlements by making a transfer directly in cash to a seller's bank account.

Non-cash settlements between two taxpayers may only be made using method 1) above, i.e., from one taxpayer's bank account to another taxpayer's bank account.