Ministry of Taxes of the Republic of Azerbaijan 

ROAD TAX

Taxpayers

Non-resident legal entities and physical persons who arrive to the territory of the Azerbaijan Republic and use the territory for transportation of passengers and cargoes, as well as persons who own and use motor cars, buses and other transportation means in the territory of Azerbaijan Republic are payers of road tax for the use of automobile roads in the Azerbaijan Republic.

Taxable base

The taxable base is automobile transport means of foreign countries arriving to the territory of Azerbaijan Republic, as well as the ones owned or used in the territory of Azerbaijan Republic.

Tax rates

The tax for automobile transport means of foreign countries arriving to the territory of Azerbaijan Republic is calculated with consideration of the type of the vehicle, number of seats, load capacity and total weight of a transport facility together with the cargo, weight on the axis, distance driven in the territory of Azerbaijan Republic and the riskiness of cargo. The amount of tax for automobile transport means owned or used in the territory of Azerbaijan Republic is calculated based on the engine volume.
Persons who own or use automobile transport means in the territory of Azerbaijan Republic pay the annual road tax based on the percentage of the conventional financial unit from each cubic santimeter of the engine at following rates

Example 1:
The annual tax amount for Jiguliо VAZ 2106 with engine volume of 1,600 cubic centimetres is 16 manats (0,01 x 1,600 manats).
Example 2:
The annual tax amount for Chevrolet with engine colume of 25,000 cubic centimetres is 30 manats (20 manats + 500 x 0.02 manats)
Example 3:
The annual tax amount for KAMAZ with engine volume of 10,850 cubic centimetres is 217 manats (0,02 x 10,850 manats).

Agricultural machinery used for production of agricultural products (tractors, combines and harvesters, cotton-pickers) and automobile transport means of budget funded organizations are exempt from the road tax.

Collection of road tax and submission of tax return

Customs authorities transfer tax on automobile transport means of foreign states to the state budget within one bank day, when such automobile transport means enter the customs territory of the Republic of Azerbaijan.
Physical persons who own or use automobile transport means in the territory of Republic of Azerbaijan pay the annual amount of road tax to the state budget when the technical inspection of the vehicle is implemented.
In case the documents certifying the payment of annual road tax are not presented, registration, reregistration and the technical inspection of automobile transport means shall not be conducted by the state agency registering the automobile transport means (Ministry of Internal Affairs).
Legal entities that own or use automobile transport means at the end of the year must file the tax return to the tax authority and pay the specified tax to the State Budget not later than March 31 of the year following the reporting year.
The state agency registering the automobile transport means (Ministry of Internal Affairs) quarterly submits the information to the Ministry of Taxes of Azerbaijan Republic not later than the 20th day of the month following the reporting quarter about newly registered automobile transport means and automobile transport means whose registrations are cancelled.

Financial sanctions and interests on overdue payments

A financial sanction is imposed on a taxpayer for late submission of road tax return without valid reasons based on the decision of the head (deputy) of the tax authority at the value of 40 manats.
In case the amount of tax indicated on tax report is less than the amount to be indicated on the report and if taxpayer fails to submit tax report and evades to pay the required tax amount to the state budget, the financial sanction shall be imposed on the taxpayer at the rate of 25 percent of understated or evaded tax amount.
For failure to pay the tax within the specified period, the interest at the rate of 0,1% of outstanding tax amount shall be imposed on the taxpayer for each day of delay.