Azerbaijan proposes cutting reporting penalty rate to 10%

Azerbaijan’s 2027 budget package includes proposed changes to penalties for financial institutions breaching reporting requirements, local media report.

For non-compliance with Tax Code article 76-1.1, the proposed charge is 10% of funds credited to an account, down from 30%, with a minimum of AZN 1,000. Where no incoming transactions occurred, the per-account penalty would rise from AZN 400 to AZN 1,000.

The proposal therefore combines a lower percentage rate with a higher fixed charge for accounts without incoming funds. It covers credit institutions, electronic money organisations and other specified financial institutions. These remain proposed amendments.