Azerbaijan participates in UN negotiations on international tax cooperation

Azerbaijan participated in the fifth substantive session of the Intergovernmental Negotiating Committee tasked with preparing the UN Framework Convention on International Tax Cooperation, the State Tax Service under the Ministry of Economy reported.

Azerbaijan was represented at the session by Jeyhun Ismayilov, a member of the OECD expert group and Deputy Head of the General Department for International Taxation and Tax Monitoring of the State Tax Service.

The negotiations focused on the fair distribution of taxing rights among countries, combating illicit financial flows and harmful tax practices, and strengthening the institutional capacity of developing countries.

Participants also reviewed preliminary draft protocols concerning the taxation of income from cross-border transactions, including digital services, as well as the prevention and resolution of tax disputes.

During the discussions, Ismayilov emphasized the importance of developing practical and applicable international tax rules, preventing double taxation and ensuring effective technical support for developing countries.

According to the State Tax Service, the development of a new international framework would allow developing countries to play a greater role in shaping global tax rules, protect their taxing rights, reduce the risks of double taxation, improve the application of transfer pricing rules and strengthen tax administration.