Azerbaijani banks exempted from taxes on international transactions through Visa – EXCLUSIVE

As part of agreements with the international payment system Visa, Azerbaijani banks have been exempted from taxes on overseas transactions.

According to Report, the Association of Banks of Azerbaijan (ABA) stated that a joint initiative between ABA and Visa eliminated the mechanism of double taxation, positively affecting the tax obligations of banks and payment service providers.

It was noted that starting from Q4 2025, the requirement to withhold tax at the source on international Visa transactions by Azerbaijani banks has been canceled, and VAT expenses on non-financial operations have also been reduced. As a result, the banking sector has saved several million manats in tax costs.

The ABA emphasized that the implemented mechanism increases legal certainty and reduces tax risks for payment service providers, ensuring more transparent and predictable fulfillment of tax obligations.