On 28 August 2026, the State Tax Service of Azerbaijan reported that the fifth session of the OECD’s international tax cooperation framework was held. This session forms part of the ongoing Base Erosion and Profit Shifting (BEPS) project, focusing on the implementation of the Two-Pillar Solution to address tax challenges arising from digitalization. Azerbaijan, as a participant in the Inclusive Framework, engages actively in these discussions to align its domestic tax legislation with global standards.
Key Takeaways
- Pillar Two Progress: Delegates reviewed the progress of the Global Anti-Base Erosion (GloBE) rules, including the Income Inclusion Rule (IIR) and Undertaxed Profits Rule (UTPR), with emphasis on transitional safe harbors.
- Azerbaijan’s Commitment: The State Tax Service reaffirmed Azerbaijan’s commitment to implementing the Two-Pillar Solution, highlighting ongoing legislative amendments to the Tax Code.
- Future Work Plan: The session outlined the 2027-2028 work program, including guidance on Amount B under Pillar One and dispute resolution mechanisms.
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