Update On Double Taxation Avoidance Treaties

International double taxation refers to the phenomenon of taxing the same income in more than one state. Double taxation adversely affects interstate trade and free movement of capital, technology, and labor. Agreements on the elimination of double taxation are of special importance to developing international economic relations, including stimulation of foreign economic activity and attraction of foreign investments.

On 23 April 2024, Law No. 1139-VIQ approved the Treaty between Government of Repulic of Azerbaijan and Government of Republic of Turkiye for Avoidance of Double Taxation and Prevention of Fiscal Evasion with Respect to Taxes on Income. The Treaty was signed on 19 February 2024 slightly over 30 years after the first such treaty was made on 9 February 1994. Presently, Azerbaijan continues to have 57 agreements for the avoidance of double taxation with 55 in effect.