BAKU, Azerbaijan, January 2. The provision of
non-performing (toxic) assets as part of measures to resolve and
rehabilitate insolvent banks, as well as assets provided during a
bank’s bankruptcy procedure, will be exempt from value-added tax
(VAT) until January 1, 2031, Trend reports.
This issue has been reflected in the law on amendments to the
Tax Code, approved by the President of the Republic of Azerbaijan,
Ilham Aliyev.
To note, VAT benefits were previously in effect from January 1,
2017, and were scheduled to expire on January 1, 2026.
These amendments came into effect on January 1, 2026.