12:08 - 4.11.2025

---

November 4, Fineko/abc.az. It is planned to carry out horizontal monitoring of the tax system of Azerbaijan.

ABC.AZ informs that this is reflected in the Draft Budget Package for 2026.

In this regard, it is planned to amend the Tax Code. According to the proposed amendment, horizontal monitoring is carried out according to the Tax Code and other regulatory legal acts adopted on its basis. The subject of horizontal monitoring is control over the correct calculation, full and timely payment of taxes in accordance with this Code. The application of transfer prices and the request of the competent authorities of foreign countries, the study of relevant information on income received from abroad, is carried out by other tax control measures and does not relate to horizontal monitoring.

Also, the period covered by horizontal monitoring is considered a calendar year and covers the calendar year preceding its start date. Horizontal monitoring begins within the time limits specified in this Code and ends no later than 6 months. The period of horizontal monitoring may be extended up to two months by decision of the tax authority, if additional research is required.

Taxpayers who meet all the following conditions as of the date of application for admission to horizontal monitoring may be admitted to horizontal monitoring:

- if the taxpayer is a medium and large business entity;

- if the taxpayer maintains accounting and tax records using software designed to automate accounting and (or) tax accounting;

- if the taxpayer applies an internal control system in accordance with the requirements of Article 38-1.10. 2 of this Code.