The Republic of Azerbaijan received the highest “compliance” score from the Organization for Economic Cooperation and Development.
Oku.Az informs that the State Tax Service (SST) dependent on the Ministry of Economy has published information in this regard.
It was noted that one of the issues of particular importance in the field of international taxation is the expansion of the exchange of information between tax authorities and the application of international standards formed in this field.
By becoming a member of the “Global Forum on Transparency and Exchange of Information for Tax Purposes” since 2013, Azerbaijan has assumed the obligation to participate in the process of implementation and evaluation of international standards on transparency and exchange of information.
So far, the Global Forum has carried out two rounds of evaluation covering the years 2010-2016 and 2016-2024. In the first phase, 125 jurisdictions were covered. It was announced that the second stage of the evaluation for the Republic of Azerbaijan will begin in September 2023, and this year, within the framework of that stage, evaluation experts visited our country. Within the framework of the visit, the experts learned about the legislation and experience of our country.
According to the results announced in the second stage of the evaluation at the 48th meeting of the Evaluation Group (PRG), the Republic of Azerbaijan received the highest score of “compliance”. The ranking of countries and the corresponding report were published on the official website of the Organization for Economic Cooperation and Development on November 21.
The Global Forum assessments under the 2nd stage of countries began in 2016 and the process covered a total of 123 countries except Azerbaijan. According to the results, 18 countries are “Compliant”, 91 countries are “Largely Compliant”, 12 countries are “Partially Compliant”, and 2 countries are “Not Compliant”.
Since 2019, country-by-country assessments have been carried out in greater depth, and the Republic of Azerbaijan was the only country after the 4 countries to receive the highest rating of “Complied” as of that date. Within the framework of the evaluation process, the provisions of a number of legislative acts and international agreements, the processes of registration and cancellation of legal entities in the country, the availability and relevance of registration data in tax authorities will be taken into account. and tax filing experience. Statements from legal entities were analyzed. In addition, the existence and storage of accounting and banking documents in the country, the accessibility of such information for the tax authorities, the rights of the tax authorities in the country and the sources of information available, the level of tax compliance by the contributors, the number of international partners of the Republic of Azerbaijan, the quality and integrity of the information exchanged and the conditions to protect the security of that information were also investigated.
The fact that Azerbaijan has received the highest rating within the framework of the World Forum indicates the existence in our country of a modern, transparent tax system, which meets international standards and provides the possibility of efficient exchange of information with all partner countries. This indicator brings a number of advantages to our country, it is of particular importance in terms of increasing the international reputation of the country in the context of ensuring a favorable investment environment and transparency, stimulating the flow of foreign investment and accepting Azerbaijan. as a reliable partner in a unique forum where the main financial centers are represented.
