Compliance
New Declaration Forms in Azerbaijan: Compliance for Withholding & Excise Taxes from August 2026
Starting 11 August 2026, Azerbaijan has introduced revised forms for withholding and excise tax declarations—old forms are no longer valid. Here's what businesses need for accurate filings.
By NomadicTax Research Team • 5-8 min read • September 5, 2026
## Overview of the Change
Azerbaijan’s State Tax Service has **approved new forms and rules** for submitting certain tax declarations effective **11 August 2026**. These include:
- **Withholding tax declarations** (payments deducted at source);
- **Excise tax declarations** including several supplemental schedules. ([taxes.gov.az](https://www.taxes.gov.az/az/post/4959?utm_source=openai))
Old declaration templates have been **revoked**. Businesses must use the updated formats moving forward. This change stems from amendments to the Tax Code sending widespread adjustments to declaration content and structure. ([taxes.gov.az](https://www.taxes.gov.az/az/post/4959?utm_source=openai))
## Who is affected?
- Corporations, branches or subsidiaries paying out **dividends or royalties** to non-residents or even domestic entities where withholding is required;
- Firms producing or importing **excise-taxed goods**, who must file excise declarations with multiple appended schedules;
- Any business that relies on previously existing forms for withholding or excise tax reporting.
## Key compliance steps
1. **Obtain the new declaration templates** directly from the State Tax Service portals; ensure you have the correct versions (date-stamped 11/08/2026). ([taxes.gov.az](https://www.taxes.gov.az/az/post/4959?utm_source=openai))
2. **Review line-items and schedules**—some fields might have changed (e.g. splitting categories, classification changes).
3. **Update internal record keeping**, particularly amounts withheld, excise basis, product categories etc., to match the new classification.
4. **Train accounting and tax teams** on using the new forms to prevent mistakes, which could trigger rejection or penalties.
## Practical example
A wholesale company importing excise goods needs to file excise tax declarations. Under the new form introduced 11 August 2026, they must include **Schedules 2, 3, and 5**. Suppose they produce Schedule 3 with missing information—perhaps a product origin code changed under the new definition. The declaration could be rejected or assessed with penalties. By obtaining the new form ahead of the deadline and cross-checking all classification codes, the company stays compliant.
## Risks & penalties
Using the old forms after **11 August 2026** may lead to:
- Rejection of filings;
- Late-filing penalties or fines;
- Potential adjustment in tax liabilities if mis-reporting withholding amounts or excise tax base.
## Best practice tips
- **Monitor official tax bulletins** or the State Tax Service site for any further format updates.
- **Digitize workflows**, so that filing in new templates is streamlined (many fields auto-populated or validated).
- **Set internal deadlines** ahead of statutory due dates to allow time for corrections using the new forms.
- **Keep archived copies** of old forms for comparison until you’re fully transitioned.
## Conclusion
The 11 August 2026 change in Azerbaijan is a significant administrative update affecting withholding and excise tax declarations. Businesses engaged in relevant activities must switch to the new declaration forms immediately to remain compliant. Thoughtful preparation and updates to internal controls will reduce risk and streamline tax reporting.