The law, approved by the Milli Majlis and signed by President Ilham Aliyev, updates provisions related to the exchange of tax and financial data under international agreements to which Azerbaijan is a party, News.Az reports, citing AZERTAC.
Under the amendments, financial institutions must collect necessary information and documents to determine a customer’s tax residency when individuals or legal entities open accounts or access financial services. If a person’s residency status changes, updated documents must be submitted to the financial institution within 30 days from the date of the change.
The law also introduces administrative liability for providing false or distorted information, or for failing to submit updated residency documents within the installed timeframe. Penalties will be applied in accordance with Azerbaijan’s Administrative Offences Code.
Additionally, technical adjustments were made to article numbering and wording in the Tax Code to reflect the new provisions.
The amendments are part of Azerbaijan’s broader efforts to align its financial transparency rules with international tax information exchange standards.
The new law comes into force on January 1, 2026.
