- Raul Gonzales
Establishing your own business in Azerbaijan is not easy. Tips from InterNations members helped me a lot to cope with the bureaucratic challenges
Employment in Azerbaijan
Job Hunting in Azerbaijan
The most efficient and popular way for expats to find work in Azerbaijan is to search the internet. There are websites that are user-friendly and easy to navigate with a very high employment success rate and use a combination of English and Azerbaijani. An example is jobsearch.az.
Many foreigners also choose to browse the job listings in newspapers, mainly in the capital city, Baku. The publications Avrasiya, Bakinsky Bulvar and the Baku Sun all have extensive job listings. A wide range of sectors and industries advertise their vacancies both online and in print, and hopeful employees should keep on track of these listings.
Taxation in Azerbaijan
Anyone earning an income in Azerbaijan is liable to be taxed. Income tax is calculated by the employer and deducted from wages using the pay-as-you-earn (PAYE) system.
Any additional income that is generated by commercial activity or any other business activity, such as rent, must be filed independently and declared before 31 March of the tax year.
The income tax form can be found on the government website, along with further information on Azerbaijan’s tax policies.
Residents who are not in possession of a residential visa are only eligible to pay tax on income earned in the country, but permanent residents will be taxed on profit and income from overseas. An annual wage of 24,000 AZN is charged an income tax rate of 14%. Anyone earning above this amount must pay 30% tax on the excess.
Social Security in Azerbaijan
It is compulsory for all residents and citizens in Azerbaijan to register for social insurance; the contributions are deducted from the gross salary of each employee (22%) and the employer needs to pay a further 3% of the gross salary, as well. The country’s social security system covers a number of circumstances and provides benefits to a range of people, covering for unemployment, maternity, invalidity and old age pension. The latter applies to men above the age of 62 and women over the age of 57 who have a history of at least 12 years’ paid employment. This pension is paid at a flat rate of 85 AZN per month. The same amount is paid to permanently disabled or seriously injured people under the disability labor benefit. There are also social security payments made to new mothers. The maternity benefit is 100% of the mother’s gross average monthly earnings and is paid for 126 days prior to and following the birth.