Alizada Mahsati Sahib,
Master’s student, Baku State University, 1st grade inspector, Lawyer of Legal Department
of 12th Territorial Taxes Main Department, State Tax Service, Ministry of Economy,
Republic of Azerbaijan
Adress: Ganja city, Heydar Aliyev avenue, 87
E-mail: [email protected]
The technical renewal of the business sector in Azerbaijan is cyclical in nature. From this point of view, financial and tax payments are being asynchronized in various areas of Azerbaijan’s economy. These cyclical changes have a direct impact on the income of the state budget of Azerbaijan by increasing and decreasing it depending on the stage of the cyclical renewal. Due to the decline in tax payments, the budget deficit is created with the recession of the national economy. And the way out of this situation is money, increasing the amount of non-tax payments. But at the current stage of the huge pace of international integration, Azerbaijan is implementing a number of measures to prevent double taxation and to attract the maximum possible capital to the country [1, p. 104].
There are unilateral and multilateral ways to eliminate double taxation by concluding an international treaty. In order to improve international cooperation, the state takes unilateral measures when it undertakes to collect taxes from natural and legal persons who earn income abroad and pay taxes in that country, or when it considers tax payments paid in a country with territorial ties to its advantage. Since the collection of taxes in the budget is the main item of filling the state budget, this policy becomes one of the most important components of the international policy of Azerbaijan. It should be noted that the measures to eliminate double taxation have a serious impact on the revenues to the state budget. But unfortunately, this influence also has negative aspects, as many foreign companies with contracts with the country where they live in Azerbaijan have a number of advantages compared to other entrepreneurs. Also, unilateral measures to prevent double taxation make the country attractive as a resident and is an important aspect in attracting international capital to the country and registering companies in the country in the future. Depending on the economy, states use different methods to avoid double taxation. The most common methods are capture, release and credit methods [2, p. 2083].