On 16 December 2016 the President of the Republic of Azerbaijan
signed the law On Non-Cash Settlements (the
Below is a general summary of the Law.
Definition of Non-Cash Settlements
Non-cash settlements are defined as follows:
Settlements from one bank account to another bank account,
including using various payment instruments (payment cards, payment
instructions) and payment means (mobile telephones, computers and
Settlements using payment terminals;
Settlements by making a transfer directly in cash to a
seller's bank account.
Non-cash settlements between two taxpayers may only be made
using method 1) above, i.e.,
from one taxpayer's bank account to another taxpayer's bank
Mandatory Non-Cash Settlements
The following transactions must be made by non-cash
Payment of taxes, state duties and fees, administrative
penalties, financial sanctions and interest specified by law, debts
in respect of leasing operations and the granting of credits;
Payments made under the laws On Insurance Activity and
On Obligatory Insurance;
Service fees and other dues paid to state bodies, legal
entities owned by the state and whose controlling block of
participatory interests (shares) belongs to the state, budget
organizations and public legal entities;
Payment of salaries (including other payments made by
employers), pensions, stipends, financial aid, allowances
(including one-off allowances), compensation and contributions,
except for the same paid by persons operating in a retail trade,
catering or services business whose operations in any month
(months) of a12 month period does not exceed AZN 200,000;
Payment for stationary telephone lines and utilities
Payment and refund of interest-free monetary resources (except
for those paid by persons who are not taxpayers), other
Using (expending) resources received under state procurement
Payment of educational fees;
Payments to tourist agents;
Payments by VAT registered taxpayers and taxpayers operating in
a trade and/or catering business whose taxable operations in any
month (months) of a 12 month period exceeds AZN 200,000 in respect
of transactions exceeding in a calendar month the total amount of
Payments by taxpayers other than those mentioned in the bullet
point above in respect of transactions exceeding in a calendar
month the total amount of AZN 15,000.
Settlements with Physical Persons who are not Taxpayers
The following payments in respect of goods purchased from
physical persons who are not taxpayers may be made in
Acceptance of agricultural products from producers of
Acceptance of ferrous and non-ferrous metal scrap;
Acceptance of paper, glass and plastic materials for recycling
and other purposes;
Acceptance of used tires for the purpose of recycling.
Responsibility for the Breach of the Law
Financial sanctions for the failure to perform non-cash
settlement where a cash settlement is restricted is 10% of the
total amount of the transaction, with a subsequent increase when
repeated for a second time to 20% and for a third and greater
number of times to 40%.
More financial sanctions relate to the failure to use cash
registers in settlements with populations and other similar
The Law shall apply to VAT registered taxpayers and taxpayers
whose taxable operations in any month (months) of a 12 month period
exceeds AZN 200,000 from 1 January 2017, and with regard to other
taxpayers from 1 April 2017.
Dentons is the world's first polycentric global law firm. A
top 20 firm on the Acritas 2015 Global Elite Brand Index, the Firm
is committed to challenging the status quo in delivering consistent
and uncompromising quality and value in new and inventive ways.
Driven to provide clients a competitive edge, and connected to the
communities where its clients want to do business, Dentons knows
that understanding local cultures is crucial to successfully
completing a deal, resolving a dispute or solving a business
challenge. Now the world's largest law firm, Dentons'
global team builds agile, tailored solutions to meet the local,
national and global needs of private and public clients of any size
in more than 125 locations serving 50-plus countries.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
The employment landscape is one that is constantly shifting. Employers who fail to keep up with the changes do so at their peril.
We are pleased to invite you to this seminar, designed to help in-house counsel and HR practitioners get to grips with key recent and forthcoming developments in employment, pensions and immigration law and practice and what they mean for your workforce.
The event is going to take place on 26 April 2017 and is addressed to participants of the Berlin Real Estate sector, in particular those dealing with redensification such as investors, developers, brokers, urban housing associations and engineers.
The personal representatives, who are responsible for administering the estate of someone who has died, generally require a Grant of Representation to allow them to collect in, sell and distribute the deceased's assets.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).