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.