16:36 - 5.11.2026

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November 5, Fineko/abc.az. In Azerbaijan, individuals will be able to independently calculate and pay tax on rental income, deducting expenses incurred in connection with this activity.

According to the draft amendments to the Tax Code, if the rent is paid by an individual who is not registered as a taxpayer, the landlord or a tax agent appointed by him will pay the tax at a rate of 10% when renting out residential premises and 14% when renting out other property.

To apply an alternative procedure, an individual must register for tax purposes, file a declaration, and notify the tax authority and the tenant in the prescribed form. At that, it will be possible to deduct expenses related to this activity from rental income, and the tax will be paid at the rate stipulated in Article 101.3 of the Tax Code.

Starting from the month following the month of filing the notification, withholding tax on rental income will not be withheld.

According to the results of the tax year, the annual income tax will be calculated taking into account income and expenses from the beginning of the calendar year. Taxes previously withheld at the source of payment will be deducted from the accrued amount. If the withheld tax is not fully accounted for in the current year, its balance will be transferred without restrictions to subsequent years to reduce tax liabilities.