30/01/2017
We would like to bring to your notice the amendments to the Law of the Republic of Azerbaijan on

Non-cash settlements of December 16, 2016:

1. In case both parties are taxpayers the following settlements are to be proceeded only cashless:

- Payments of taxpayers registered for VAT purposes;
- Payments of those taxpayers operating in the field of trade and (or) public catering, the volume of taxable transactions of which in any consecutive 12-month (months) period is more than AZN 200 000.00 with a total amount more than AZN 30 000.00 for a calendar month (applied from January 1, 2017);
- Payments of other taxpayers with a total amount of transactions more than AZN 15 000.00 for a calendar month (applied from April 1, 2017)

2. Starting January 1, 2017 regardless the limits mentioned in the 1st paragraph the following settlements are to be proceeded only cashless:

- Tax payments, customs payments and duties, administrative forfeiture defined by legislation, financial penalties and interests, repayment of debts for leasing operations, loan origination;
- payments defined by "Law on Insurance Operations» and «Compulsory Insurance Law";
- service fee and other duties proceeded to state authorities, state properties and legal entities with majority stake owned by government, budget organizations and public legal entities;
- salaries (including those paid by the employer, other payments stipulated by the legislation), pensions, scholarships, financial aid, benefits (including one-time benefits), compensation and reparations paid by legal entities (except those operating in the field in the retail trade, catering and services) the volume of transactions of which in any consecutive 12-month (months) period is up to two hundred thousand manats;
- payments for landline phone services and utility expenses;
- payment and return of non-interest funds (excluding payments from non-taxpayers) and other allocations;
- use of funds received from public procurement contracts (disbursement);
- education fee payments;
- transfers to travel agencies.

3. Taxpayers are allowed to buy the following from non-taxpayer individuals by cash:

- purchase of agricultural products from agricultural producers;
- acceptance of non-ferrous and ferrous steel scarp;
- acceptance of paper, glass and plastic wastes for utilization and other purposes;
- acceptance of waste tires for utilization purposes.

According to the amendments from December 16, 2016 to the Tax Code of the Republic of Azerbaijan the following pecuniary penalties will be applied to seller of goods (works, services) for the breach of the Law in case of cash payment for transactions which have been limited for cash:
- 10 percent from a total amount of transaction for the first time,
- 20 percent from a total amount of transaction for the second time,
- 40 percent from a total amount of transaction for the third time and more.
We kindly invite our customers to understand thorough the latest amendments and strictly follow the legislation. Thus, it is essential for prestigious and sustainable Bank prevent its customers from possible penalties and sanctions for the transactions forbidden by law.