On 5 October 2026, Azerbaijan’s Minister of Economy, Mikayil Jabbarov, met with the Secretary-General of the Digital Cooperation Organization (DCO), Deemah AlYahya, to discuss the taxation of the digital economy and the implementation of the OECD/G20 Inclusive Framework’s Two-Pillar Solution. Azerbaijan, a DCO member since 2023, seeks to align its digital services tax (DST) regime with the multilateral convention (MLC) under Pillar One, while preparing for the global minimum tax (Pillar Two) effective 2027. The meeting also covered the DCO’s “Digital Tax Atlas” project, which aims to harmonize digital tax definitions and compliance procedures across member states.
Key Takeaways
- Pillar One Readiness: Azerbaijan has drafted legislation to replace its unilateral 3% DST with the MLC’s Amount A allocation rules, targeting implementation by 1 January 2028, pending MLC ratification.
- Pillar Two Transposition: The Ministry of Economy is finalizing the draft law for the Qualified Domestic Minimum Top-up Tax (QDMTT) and the Income Inclusion Rule (IIR), with stakeholder consultations scheduled for November 2026.
- DCO Technical Assistance: The DCO will provide expert support for developing a unified digital taxpayer registry and an API-based real-time reporting system for non-resident digital service providers.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement