BAKU, Azerbaijan, December 22. Azerbaijan plans to implement a horizontal monitoring mechanism in tax control starting next year, aiming to create a more business-friendly environment and simplify tax administration, Trend reports, citing the State Tax Service under the Ministry of Economy.
The reform will replace traditional electronic audits with a model widely used internationally, focusing on transparent cooperation between tax authorities and medium- to large-scale taxpayers.
Under this system, taxpayers with medium or large business status who use automated accounting and internal control systems will disclose potential tax risks in advance. Mobile tax inspections will be conducted only in exceptional cases, and financial penalties will be avoided if risks are pre-declared. Undisclosed risks may result in a financial sanction of 25%.
"The new approach is expected to reduce administrative burdens, strengthen trust and transparency, enhance financial discipline, and support long-term, stable budget revenues. Taxpayers will also have the option to calculate depreciation of main assets using either the declining balance or straight-line method.
The reform aims to establish a modern, trust-based tax management model that benefits both taxpayers and the state," the statement said.
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