OECD confirms Azerbaijan's compliance with country-by-country reporting rules

The Organization for Economic Cooperation and Development (OECD) has released the results of its latest international review of country-by-country reporting (CbCR) under Action 13 of the Base Erosion and Profit Shifting (BEPS) project.

Report informs, citing the State Tax Service under Azerbaijan's Ministry of Economy.

The ninth annual review, covering 142 jurisdictions, once again confirmed Azerbaijan's full compliance with the international minimum standard on country-by-country reporting. No recommendations for improvement were issued to the country.

The review examined Azerbaijan's domestic legal and administrative framework, international information exchange mechanisms and practices for ensuring the appropriate use of the reports received. The country was found to meet international requirements in all three areas.

Country-by-country reporting involves the exchange of information between tax administrations on multinational enterprise groups' activities, revenues, profits, taxes paid and other economic indicators across different countries. The mechanism promotes international tax transparency and helps identify potential risks related to transfer pricing and profit shifting.

By implementing the minimum standard under BEPS Action 13, Azerbaijan participates in international information exchange within the country-by-country reporting framework. The State Tax Service continues to implement legal and administrative mechanisms in this area and develop international cooperation.

The review results confirm that Azerbaijan's measures to implement international tax standards and improve tax transparency meet the relevant international requirements.