Ministry of Taxes of the Republic of Azerbaijan

REGISTRATION OF TAXPAYERS

TIN 

REGISTRATION OF TAXPAYERS 

Registration of taxpayers

Legal entities and physical persons are registered at the tax authority as taxpayers regardless of presence of circumstances that stipulate the tax payment for the purposes of implementation of tax control.
Legal entities are registered with tax authorities at the place of their own location (legal address indicated on state registration documents); non-residents whose taxable income is from Azerbaijani sources and not taxed at source of payment are registered with tax authorities at the place where such income is obtained; individual entrepreneurs and physical persons who are to submit tax return are registered with tax authorities at the place of their residence.
In case the taxpayer holds branches, representative offices or other economic subjects (facilities) carrying out the activity outside the territory of tax authority, the taxpayer is registered at the place of his own location, as well as the locations of his branches, representative offices and other economic subjects (facilities). If this is a case, the taxpayer is issued a relevant notification.
Branches, structural divisions and other separate units of the legal entity carrying out the entrepreneurial activity which hold separate balance, current or other accounts, as well as the affiliates and permanent representative offices of non-residents established in accordance with the law of Azerbaijan Republic are registered separately and issued TIN.
Units of budget-funded and non-commercial organizations located away from them and established in order to fulfil their functions might be registered separately and issued TIN.

Submission of documents

The taxpayer submits the application to relevant tax authority for tax registration.
Legal entities must submit the application within 30 days following the date of their state registration while their affiliates and representative offices must do so within 30 days from the date of their establishment.
Physical person engaged in entrepreneurial activity without establishment of legal entity must submit the application to the tax authority by the date of the conduct of entrepreneurial activity.
Physical persons with incomes not subject to taxation at source of payment or from the royalty, as well as the resident physical persons obtaining income outside the territory of the Azerbaijan Republic must submit the application to the tax authority not later than the date of holding the right to make such incomes.
Legal entities, their affiliates and representative offices must submit following documents for registration:

• application;
• copy of the document about state registration and the charter (or statute);
• copies of the documents verifying the appointment of the director;
• copies of the documents verifying the address of the legal entity;
• copy of the document verifying the identity of the director;
• information about the location (address) of the legal entity.

The application is filled out by the taxpayer or his authorized representative. The taxpayer (his supervisor) bears responsibility for accuracy of information provided on the application.

Physical persons (individual entrepreneurs) must submit following documents for registration:

• application;
• copy of the identification document;
• information about residence.

The tax authority must register the taxpayer and issue the certificate to the taxpayer within 2 days from the date when application on registration was submitted along with other relevant documents.
The certificate, which is the main verification of the registration of taxpayer is issued to the taxpayer only once and retained by him. If the certificate is lost or became useless, new copy of certificate shall be issued by the request of the taxpayer. In this case, appropriate record is made on the issued copy that this is the new copy of the certificate.
In case of change of the place of residence of the taxpayer, he must submit the application to the tax authority within 15 days from the date of such change.
The re-registration of the taxpayer is performed by the tax authority with which the taxpayer was registered within 15 days from the submission of application by taxpayer on change of his residence.
In case of any change of information provided by the taxpayer on the application form for registration, he must submit the information about the change to the tax authority within 15 days from the date of such change.
Registration, re-registration and cancellation of registration is performed free of charge.

TIN

Each taxpayer is given a taxpayer’s identification number (TIN) for all types of taxes which is universal on the entire territory of the Azerbaijan Republic.
TIN reflects the code of the tax authority registering the taxpayer and the serial number of the taxpayer.
TIN must necessarily be indicated on accounting and statistical reports, tax calculations, contracts, invoices, receipts, cash register checks, letters, as well as on customs, bank and other payment documents.
Upon receiving the registration certificate the taxpayer submits an application to the tax authority to open the bank account. The tax authority then issues the certificate-duplicate to the taxpayer within 2 days on the basis of this application. The number of certificate-duplicates issued to the taxpayer is not limited and each of them is numbered. The certificate-duplicate is issued when the taxpayer does not owe any taxes, interests on overdue debts or financial sanctions.
Banks open bank accounts for legal entities, their branches and representative offices, individual entrepreneurs only upon submission of the certificate-duplicate confirming his registration at tax authorities.
Bank accounts could be opened only in banks (in branches) mentioned on the certificate-duplicate.
In cases of termination or re-organization of the legal entity, termination of the branch or permanent establishment by the legal entity, seizure of activity through establishment, the seizure of activity by individual entrepreneur, the cancellation of registration shall be performed on the basis of the taxpayer’s application.
Complete cancellation of the TIN of the legal entity is performed in case,
a) the decision is adopted on termination of the legal entity in accordance with the legislation;
b) the organizational-legal form of the legal entity changes;
c) the owner of the legal entity changes.

Termination commission is established upon the decision on termination of the legal entity. Termination commission must submit the relevant letter with this regard to the territorial tax authority at which the legal entity is registered within 10 days. Following documents must be attached to this letter:

• copy of the decision on termination;
• termination balance of the legal entity.

Termination procedure is completed when all payments to budget and non-budgetary funds are made by the taxpayer. Then the registration of the taxpayer is terminated.
Cancellation of the TIN of the physical person is possible in case his activity is terminated, he is found to be missing or disabled by court decision in accordance with procedures defined under the legislation or his death. Seizure of the activity can not serve as a basis for termination of registration.
In the event of cancellation of the TIN of the taxpayer the certificate of its registration must be returned back to the tax authority. The tax authority informs the bank office on recognition of the duplicate of certificate as invalid.

Penalties

Financial sanction at the amount of 40 manats is applied on the taxpayer for following tax violations:

• failure to submit application for tax registration within timeframe established by the legislation;
• failure to submit application about the change of location or residence within timeframe established by the legislation;
• failure to submit information about the changes of registration data (requisites indicated on the application of a taxpayer for tax registration).