DoubleTaxationTaxes on salary: Azerbaijan preliminary data
How much income tax and social contributions are paid on a salary in Azerbaijan, what a sole proprietor and a company pay, and which special regimes exist. Preliminary data.
Preliminary data: headline rates from official sources and bulletins of international organisations, without reliefs or special rules; being refined.
Calculation for a gross salary of €60,000 per year
| Gross salary | AZN 119,554 ≈ €60,000 |
|---|---|
| Income tax | AZN 10,462 ≈ €5,250 |
| Employee contributions | AZN 13,003 ≈ €6,526 |
| Take-home pay | AZN 96,089 ≈ €48,224 |
| Employer contributions and payroll taxes | AZN 18,207 ≈ €9,137 |
| Employer's labour cost | AZN 137,761 ≈ €69,137 |
Only some of the country's direct taxes and levies are counted: income tax on wages and compulsory contributions. Not counted: property and real-estate taxes; taxes on dividends, interest and other investment income; inheritance and gift taxes; indirect taxes such as VAT, excise and customs duties.
Taxes for sole proprietors and companies
Tax and contributions on the profit for a year; expenses are 10% of revenue, the company pays its profit out to the owner. Reliefs and local taxes are not included.
| Annual revenue | €30,000 AZN 59,777 | €60,000 AZN 119,554 | €120,000 AZN 239,108 |
|---|---|---|---|
| Sole proprietor | AZN 4,308 8.0 % | AZN 11,132 10.3 % | AZN 28,348 13.2 % |
| Company | AZN 10,760 20.0 % | AZN 21,520 20.0 % | AZN 43,040 20.0 % |
| Sole proprietor · Simplified tax (sadələşdirilmiş vergi) | AZN 1,196 2.2 % | AZN 2,391 2.2 % | above the regime's limit |
Special tax regimes
Technology park residents — employee income tax
For employees · rate 5.0 %
Who: Employees of technology park residents doing system integration and software development outside the park.
Employment income is taxed at 5% of monthly taxable income instead of the general scale.
Legal basis: Tax Code of Azerbaijan (as summarised in the State Tax Service 2026 booklet)
Tax residence
The tax residence check does not cover Azerbaijan yet.
Assumptions
- Calculated with the OECD Taxing Wages methodology: income tax including local taxes plus employee social security; single person without children, tax year 2026, ECB rate of 2 January 2026.
- Exchange rate: 1 EUR = 1.99257 AZN (Central Bank of the Republic of Azerbaijan — official rate, 2026-01-02) ↗
Sources
- State Tax Service of Azerbaijan — booklet 2026: income tax withheld on employment income, social, unemployment and medical insurance
- State Tax Service — flyer 2026 for non-state non-oil employers (income tax, social and medical insurance bands)
- State Tax Service — flyer 2026 on social insurance of individual entrepreneurs
- State Tax Service — booklet 2026 on profit tax exemptions
- State Tax Service — simplified tax booklet (2022)
- DOST Agency (Ministry of Labour) — what is the compulsory state social insurance fee
- Central Bank of Azerbaijan — official exchange rates 02.01.2026
- State Tax Service of Azerbaijan — booklet 2026: Simplified tax (sadələşdirilmiş vergi)
Data checked: 2026-11-08. An indicative calculation for a typical case. Not tax advice.