BAKU, Azerbaijan, October 20. In Azerbaijan,
taxpayers voluntarily declare 92.6% of the taxes paid to the state
budget, Samira Musayeva, Deputy Head of the State Tax Service under
the Ministry of Economy, said at the Sustainable Business,
Corporate Governance, Risk, and Compliance (GRC) conference in Baku
on Tuesday, Trend's
correspondent reports.


She said tax authorities have a dual role: they contribute to
creating a transparent economic environment while also overseeing
business activities.


"Compliance and transparency are equally important for both
government agencies and businesses. Government agencies must ensure
that their internal administrative procedures comply with the
principles of transparency and compliance, while businesses must
meet legislative requirements. This process serves the interests of
both sides," she noted.


Musayeva said that reforms launched in 2018 and measures
implemented since 2019 have aimed to increase transparency in
economic activity and encourage businesses to conduct transparent
operations.


According to her, ensuring compliance with regulatory
requirements involves more than voluntary mechanisms and
incentives. Administrative resources, oversight capabilities, and
data analysis must also be used effectively.


"The main goal is to process available data accurately and on
time, identify potential risks in advance, and take the necessary
measures. To achieve this, a proper balance must be struck between
the oversight powers of tax authorities and the conditions created
for businesses to operate transparently," the deputy head of the
State Tax Service emphasized.


She noted that the results achieved in tax administration
demonstrate the effectiveness of efforts to improve transparency in
economic activity.







"Currently, taxpayers voluntarily declare 92.6% of the taxes
paid to the state budget. In addition, 85% of more than three
million tax returns are submitted on time," Musayeva said.


According to her, the use of electronic invoices and cash
register systems helps improve the transparency of economic
transactions, make transactions traceable, and strengthen tax
discipline.


The deputy head of the State Tax Service also highlighted the
importance of businesses obtaining information about their
partners. She said the "Know Your Counterparty" service, available
through the tax authority's database, enables taxpayers to identify
their business partners and obtain information about them when
conducting economic activities.


Speaking about future priorities, Musayeva noted the growing
impact of digitalization and artificial intelligence technologies
on business processes.


She said that key objectives include establishing proper,
timely, and effective oversight of business processes in a rapidly
changing digital environment and expanding digitalization across
all areas of tax authorities' operations.


According to the deputy head of the State Tax Service, expanding
data analysis capabilities and introducing modern technologies
could help identify risks more quickly, improve tax administration
and strengthen transparency in the business environment.