Starting from October 1st of this year, a significant amendment to Article 35 of the Tax Code will come into effect in Azerbaijan. This amendment concerns the procedure for opening bank accounts for taxpayers in banks and other organizations engaged in banking activities in the country, as reported on Friday.
According to the State Tax Service under the Ministry of Economy, under current legislation, taxpayers initially submit an application to the tax authority to open an account with banks, other credit organizations, and the offices of the national postal operator. Based on this application, the tax authority issues a duplicate certificate (valid for 10 days) within a maximum of two days, provided the taxpayer has no outstanding tax, interest, or financial penalties owed to the budget. In cases of outstanding debts, the opening of a bank account is denied.
As a result of the legislative changes, the requirement for taxpayers to obtain a duplicate certificate from the tax authority to open an account is abolished. Instead, accounts will be opened based on the direct application of the taxpayer to persons engaged in banking operations. After the new changes take effect, taxpayers with outstanding tax debts, interest, and financial penalties will also have the opportunity to open bank accounts. Consequently, the legislative restriction on account opening for unscrupulous taxpayers will be lifted.
Furthermore, individuals engaged in banking operations will open accounts based on the taxpayer’s application and send the information electronically to the tax authority within one working day from the date of opening the account. This streamlined process aims to simplify and expedite the procedure for entrepreneurs and individuals seeking to open bank accounts in Azerbaijan.
