BAKU, Azerbaijan, December 22. Azerbaijan plans
to implement a horizontal monitoring mechanism in tax control
starting next year, aiming to create a more business-friendly
environment and simplify tax administration, Trend reports, citing the
State Tax Service under the Ministry of Economy.
The reform will replace traditional electronic audits with a
model widely used internationally, focusing on transparent
cooperation between tax authorities and medium- to large-scale
taxpayers.
Under this system, taxpayers with medium or large business
status who use automated accounting and internal control systems
will disclose potential tax risks in advance. Mobile tax
inspections will be conducted only in exceptional cases, and
financial penalties will be avoided if risks are pre-declared.
Undisclosed risks may result in a financial sanction of 25%.
“The new approach is expected to reduce administrative burdens,
strengthen trust and transparency, enhance financial discipline,
and support long-term, stable budget revenues. Taxpayers will also
have the option to calculate depreciation of main assets using
either the declining balance or straight-line method.
The reform aims to establish a modern, trust-based tax
management model that benefits both taxpayers and the state,” the
statement said.
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