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FINANCIAL ISSUES
		Currency Converter

Azerbaijan's unit of currency is the manat, which is issued only in the form of notes. The manat was formerly divided into 100 gopiks, but this has long since become obsolete due to inflation early in the nation's independence. This is the same reason why smaller manat notes -- such as those for AM1, 5 and 10 denominations -- are no longer in use. Currently, the manat is issued in denominations of AM50, 100, 250, 500, 1,000, 10,000, 50,000 and 100,000.

FAST FACT:
The AM10,000 note is sometimes called a "shirvan," in reference to the Shirvan Shah's palace.

Banking Services
Since Azerbaijan's independence, private local banking services have exploded in Baku. However, this has lead to a certain degree of instability regarding such local banks. Thus, it is advisable to open an account with a more secure international bank in the capital, rather than the trust your money with an uninsured enterprise. Foreign nationals may also opt to open an account with the strengthening National Bank of Azerbaijan.

Expatriates are allowed to open bank accounts in foreign currencies. However, this process can be more complicated depending upon your choice of bank.

Automatic Teller Machines
Automated banking facilities are quite limited in Azerbaijan and can be found only within the capital city of Baku. Some even offer withdrawals for Russian rubles and US dollars as well as Azeri manats. Most ATMs are operated by the British Bank of the Middle East, International Bank of Azerbaijan and Most Bank. The International Bank of Azerbaijan operates ATMs in the following locations in Baku:

• Bina Airport, International Terminal
• Central Post Office: 33 Azerbaijan Ave.
• Select branches of the International Bank of Azerbaijan
• Ramstore Supermarket: 1129 Babek Ave.; 8 Rasulzade St.

The HSBC cash machine is located within the Hyatt Towers at 1 Bakihanov St. Most Bank operates its ATM from 4 H.Hajiev St.

Credit Cards
Since Azerbaijan economy is based primarily on cash, credit cards have very limited acceptance outside of major hotels and banks. Getting a cash advance can be difficult at anything other than the main offices of Azerbaijan's largest banks. Local banks have not have the resources or experience required to process the transaction.

Banks in Baku
Capital Investment Bank
3 Azerbaijan Ave.
Tel: [994](12) 934-949, 930-145
Fax: [994](12) 938-450

Credit Lyonnais
6/8 Asaf Zeynally Street
Ichari Shekher
Tel: [994](12) 921-510
Fax: [994](12) 938-040

HSBC British Bank
The Landmark Plaza
96 Nizami St.
Tel: [994](12) 970-808
Fax: [994](12) 971-730

Mostbank Azerbaijan
4 Husi Hajiyev St.
Tel: [994](12) 971-070
Fax: [994](12) 980-778

National Bank of Azerbaijan
32 Rashid Bebutov St.
Tel: [994](12) 931-122/ -252
Fax: [994](12) 933-383

National Bank of Iran
85 Salatyn Askarova St.
Tel: [994](12) 957-018, 946-368
Fax: [994](12) 980-437

Banking Hours
General banking hours are from 9:30 a.m. to 5:30 p.m., Monday through Friday. However, hours of operation differ amongst individual banks.

Local Taxation
Foreign national residents of Azerbaijan are taxed on their world-wide income, whilst non-residents are taxed only on income from an Azeri source. Non-residents are those who have lived in the country for less than 183 days of the calendar year; this determination is subject to change. Nonetheless, non-residents are taxed at the same rates as residents in Azerbaijan.

There is a Value Added Tax, or VAT, on imported goods purchased within Azerbaijan. Usually this duty is already included in the price, as is the case with imported food items.

Sources of Taxable Income
Taxable income includes all compensation and remuneration received from an employer, whether in cash or certain benefits, as well as any dividends or interest on investments. However, expatriate employees have certain types of income which are tax exempt.

Sources of Non-Taxable Income
Foreign national employees in Azerbaijan are allowed certain non-taxable benefits from their employer. These include compensation for renting accommodations, maintaining a car for business use and travelling for business purposes whilst on assignment.

Deductions/Tax Relief
All residents of Azerbaijan with three or more dependants are allowed certain allowances, thereby lowering their taxable income. Each dependent is worth a AM16,500 reduction of one's taxable income, up to a maximum of AM82,500.

Tax Treaties
Azerbaijan currently has tax treaties with the countries of Georgia, Kazakstan, the Netherlands, Norway, Pakistan, Poland, Russia, Turkey, the United Kingdom and Uzbekistan.

Tax Structure
Azerbaijan's income tax structure is based on a system of tax brackets, in which higher taxes are levied on higher incomes. Incomes within a certain tax bracket (two specific amounts established by the tax authorities) are subject to a flat tax sum. Then, any of the income earned in excess of the lowest end of the tax bracket is taxed by percentage. That tax on the excess increases with each increasing income bracket.

All taxes are calculated in Azeri manats, so income paid in foreign currency is changed into manats according to the official exchange rate used on the date the money was issued.

Payment of Taxes
Income taxes of foreign national residents and non-residents are withheld from the employees' salaries throughout the year. Although citizens are not required to do so, expatriates must file tax returns each year, paying taxes on the estimated salary and benefits. This requires that foreign nationals submit an estimated income return for the current year within one month of arriving in Azerbaijan.

Taxes are paid on the estimated income in three equal instalments, due on 15 May, 15 August and 15 November. A final return for the past tax year is due by 1 February, along with next year's income estimate. Any adjustments such as payments or refunds are settled within two to three months of the final tax return.

When planning to leave Azerbaijan permanently, foreign nationals must file their final tax return for the year at least one month before leaving the country.

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