General Information
Title of the action - Support to the Ministry of Taxes of the Republic of Azerbaijan in Transfer Pricing and developing Anti-Tax Avoidance measures
Priority sector - Finance
Contracting party - Centre of International and European Economic Law (CIEEL) and Independent Authority for Public Revenue (IAPR), Hellenic Republic
Beneficiary - Ministry of Taxes of the Republic of Azerbaijan
Duration (months) - 28 months (17.01.2018-17.05.2020)
EU budget (EUR) - EUR 1 200 000 (Funded under the European Neighbourhood Instrument (Annual Action Programme 2013)
Summary of the Action - Short description of the action and its main objectives
The overall objective of the Twinning Program is the introduction and implementation of an efficient Transfer Pricing Legislation and transfer pricing auditing by the Ministry of Taxes of the Republic of Azerbaijan.
Location - Baku
Expected results / Results achieved
Project goals:
Effective transfer pricing legal framework is developed in line with best EU standards
“Advance Pricing Agreements” and “Mutual Agreement Procedures” systems in the field of Ministry of Taxes are developed
Setting up the administrative supervisory mechanisms in the field of transfer pricing regulation in compliance with the EU standards and increase an institutional capacity of Ministry of Taxes in this area
Results achieved:
16 (sixteen) (15.01.2020) seminars conducted and the most important concepts of transfer pricing provisions presented, discussed and analyzed;
4 (four) study visits to Greek, Austrian and German tax authorities of EU Member States;
13 (thirteen) (15.01.2020) workshops  held;
“Transfer Pricing Methodology Guidelines” and an updated version of the “Transfer Pricing Rules”, both approved and ready for implementation;
An implementation package of proposed amendments in domestic primary and secondary legislation developed for:
Country by Country Reporting (CbCR);
“Advance Pricing Agreements” system and Horizontal Monitoring procedures;
“Mutual Agreement Procedures”;
Recommendation on local legislation concerning BEPS ;
Transfer Pricing Auditing Process for specific sectors and development of rules on Transfer Pricing;
Expected Results:
Preparation of TP trained staff in the MoT
Foundation of special TP unit/division in the MoT