Azerbaijan

Individual - Other taxes

Last reviewed - 09 January 2026

Social security contributions

Starting from 1 January 2026, the mandatory social security contribution rates for employment income (other than oil and gas and government sectors) will be as follows:

Amount of income	Social contribution per employee	Social contribution per employer
Up to AZN 200	3%	22%
From AZN 200 to AZN 8,000	AZN 6 + 10% for the amount between AZN 200 and AZN 8,000	AZN 44 + 15% for the amount between AZN 200 and AZN 8,000
Above AZN 8,000	AZN 786 + 10% for the amount above AZN 8,000	AZN 1214 + 11% for the amount above AZN 8,000

The standard rates that are applicable to the employees of the oil and gas and government sectors, and which will be applied after the seven-year grace period, are as follows:

Employee: 3%
Employer: 22%

All foreign employees are subject to social security contributions at these rates, except persons with diplomatic status and expatriate employees working under PSAs.

Entrepreneurs who are physical persons are liable to social security contributions at rates that vary depending on the type of activities and region of operation of such entrepreneurs.

Unemployment insurance contributions (UIC)

Starting from 1 January 2018, the law 'On Unemployment' has been enacted as a result of which each employer and employee will bear 0.5% UIC assessed on the gross monthly salary.

The amount of unemployment insurance payments depends on the length of insurance record and the amount of past average monthly salary.

Mandatory medical insurance

According to the Law of the Republic of Azerbaijan 'on medical insurance', the introduction of mandatory medical insurance came into force from 1 January 2021.

The calculation and payment of mandatory medical insurance is determined as follows:

Sector	Monthly Salary	Employee Contribution	Employer contribution	Total
Non-oil & gas / non-government (Private Sector)	Up to AZN 2,500	2%	2%	4%
Non-oil & gas / non-government (Private Sector)	Portion above AZN 2,500	0.50%	0.50%	1%
Oil & Gas / government sector	Up to AZN 8,000	2%	2%	4%
Oil & Gas / government sector	Portion above AZN 8,000	0.50%	0.50%	1%

Consumption taxes

Value-added tax (VAT)

The standard rate of VAT is 18%. Individuals who are end consumers are able to receive a VAT refund on their VAT payments made for the purchased goods from entities engaged in retail trade or catering services, as well as for the purchase of residential and non-residential areas. See the Other taxes section in the Corporate tax summary for more information.