Employ Candidates Compliantly in Azerbaijan

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  1. Overview: Azerbaijan
  2. Global HR Compliance
  3. Global PEO and payroll
  4. Work permit for hiring expats via PEO
  5. Expand without a company set up
  6. Contractor vs. employee: which is better?
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Global PEO and Payroll in Azerbaijan

Getting your business up-and-running in Azerbaijan can be challenging, especially if you do not speak the native language. Establishing your own business entity in Azerbaijan is an option to be considered as you expand abroad. But before you invest valuable resources in setting up business in Azerbaijan, you should be fully aware of the risks involved.

Acumen’s Global PEO and Payroll solution was designed especially for companies like yours, to smooth the way for quick, easy and risk-free business operations in Azerbaijan, without having to establish a legal business entity.

Acumen International – Your Professional Employer Organization in Azerbaijan

Navigating the Azerbaijani legal system and adhering to regulations governing employment and taxation can be challenging for businesses, especially if you are not a native Azerbaijani speaker. Partnering with Acumen International as a global Professional Employer organization (PEO) provides you with the local knowledge and support you need to conduct business in Azerbaijan without concern for legal and compliance risks.

Whether you represent international client companies or you are taking your own business operations abroad, Acumen International’s Global PEO and payroll service allows you to hire and payroll local and expat employees in Azerbaijan. With Acumen in your corner, you can quickly and easily onboard and compensate your employees without risk of legal repercussions.

International Global Payroll and Taxation in Azerbaijan

International Global Payroll and Taxation

Corporate income tax (CIT). Domestic enterprises and PEs of non-residents are subject to profit tax.

Taxable profits are defined to be the difference between a taxpayer’s gross income and deductible expenses. Gross income encompasses all revenues received by a taxpayer from all economic activities unless the revenues are expressly exempted under the law.

Personal Income tax (PIT). A resident’s taxable income in Azerbaijan is comprised of worldwide income (i.e. income generated in and outside Azerbaijan).

A non-resident’s taxable income in Azerbaijan is comprised only of the income generated from sources in Azerbaijan.

The taxable base of residents is determined as the difference between gross income for a calendar year and expenses (or deductions).

Where income from dependent employment has been taxed at source, no further income tax or deductions are calculated.

Payroll Cycle in Azerbaijan

As a rule, wages shall be divided into two parts (advance and remaining pay) and paid to employees twice a month with an interval not to exceed sixteen days. Wages for employees whose salaries are calculated over a one-year period must be paid not less than once a month. Other terms for the payment of wages may also be stipulated in collective agreements and employment contracts.

If a payday falls on a holiday or weekend, payment shall be made the day prior.

13th salary in Azerbaijan

There is no requirement for the 13th salary payment in Azerbaijan.

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How Acumen’s International PEO and Payroll Service can Benefit Your Business in Azerbaijan

Compensating your local and expat workforce in Azerbaijan and closely adhering to Azerbaijani taxation requirements can divert your attention and resources from activities that help your business grow. A reliable global employment solution like Acumen’s Global PEO and Payroll service can take a substantial burden off your shoulders so you can focus on running your company.

Outsourcing the administrative and compliance tasks involved in employee payroll is one approach, but we have a better solution. Acumen International offers a global PEO and payroll solution that goes beyond outsourcing. We hire and compensate your global workforce on your behalf, and take care of all the details of payroll while ensuring full compliance with Azerbaijani labor and taxation laws.

It is important to note that Acumen does not provide international global payroll services as a standalone solution, but only as a part of our global PEO and Payroll solution.

Our comprehensive global PEO and payroll services are just some of the benefits of partnering with Acumen International. We make it easy for you to achieve your business goals in Azerbaijan by officially employing and compensating your best selected global talent – both locals and expats – without concerns for legal and compliance risks faced by global employers.

Disclaimer: Any of the above information is subject to changes imposed by Azerbaijani laws. To get the latest updates on taxation in Azerbaijan and in 190 countries worldwide, contact Acumen’s team of global employment experts.

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