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Indicators

Measures to be taken

Current normative legal acts, documents/Required changes in legislation

Executive bodies

Development of financial markets and accessibility of loans

"Getting loans" indicator

1.

Rule of Law Index

1. The laws permitting business with any category of movable property being in the possession of the collateral provider without requiring the description of specific characteristics of collateral;
2. Encumbrance right is applied to assets acquired in the future or later and encumbrance automatically applies to the product as well as new movable property in case of replacement of movable property;
3. Authorizing the general description of all types of debts and liabilities in Encumbrance Agreements; ensuring all types of debts and liabilities among the parties; and providing the maximum size of the principal obligation in the Encumbrance Agreement.

Civil Code;

Law on Encumbrance of Movable Property;

The Presidential Administration of the Republic of Azerbaijan,

Cabinet of Ministers

Ministry of Justice,

Ministry of Economy,

Financial Market Supervisory Authority (FIMSA),

Contract Execution, Disputes Resolution, Enterprise Dissolution and Bankruptcy, Judicial System, and The Rule of Law

"Bankruptcy Solution" indicator

2.

Term (years)

The measures to be taken in connection with this indicator are reflected in the relevant strategic document.

State Committee on Property Issues, Ministry of Justice, Ministry of Taxes, Ministry of Economy

3.

The effectiveness of bankruptcy legislation

1. Upon declaration of bankruptcy, the debtors should be divided into differential groups for voting in connection with the Reorganization Plan of the company and the determination of each group to vote separately
2. Upon declaration of bankruptcy, debtors receive consent from creditors when selling large amounts of assets of the company

Law on "Bankruptcy and Insolvency"

Ministry of Justice,

Ministry of Taxes, Ministry of Economy,

Financial Market Supervisory Authority (FIMSA)

"Contract Execution" indicator

4.

Quality of judicial proceedings

1. Determination of the maximum number of interim or deferral proceedings in the legislation
2. Ensuring access of claims electronically ("electronic case management tools") by lawyers and judges
3. Ensuring electronic payment of judicial expenses
4. Improvement of voluntary mediation/conciliation and arbitration procedures in the judicial system

Cabinet of Ministers,

Ministry of Justice

Corporate Management, Investments, Protection of Investor Interests, Business Ethics, and Corporate Social Responsibility (CSR)

"Protection of small investor rights" indicator

5.

Corporate Responsibility Index (CRI)

In addition to cases of intentional deception and fraud, it is also necessary to ensure that the transaction concluded by the Court is possible to be terminated, including where the transaction is unfair or causes a Conflict of Interest (COI)

Code of Administrative Offenses;

Criminal Code;

Civil Code

Ministry of Economy,

Ministry of Justice, Ministry of Taxes,

Financial Market Supervisory Authority (FIMSA)

6.

Ease of shareholder suits index

Determination of the rules for the submission of all documents (without specifying a concrete document) for the case by the respondent to the claimant

Civil Procedure Code;

Civil Code

Financial Market Supervisory Authority (FIMSA),

Ministry of Economy,

Ministry of Justice, Ministry of Taxes

7.

Control Index Property

1. Ensuring the establishment of a separate Audit Committee by the Supervisory Board (Board of Directors);
2. Prohibition of the right of the subsidiary to buy shares of the parent company;
3. Making a tender offer to existing shareholders at the time of purchase of 50 percent of shares in joint-stock companies;
4. Ensuring the early termination of the powers of a member of the Supervisory Board (Board of Directors) in a Limited Liability Company.

Civil Code

Financial Market Supervisory Authority (FIMSA),

Ministry of Economy,

Ministry of Justice,

Ministry of Taxes.

8.

Corporate Transparency Index

1. Ensure that members of the Supervisory Board (Board of Directors) of the company disclose information on their membership in the councils of other companies and their main workplaces;
2. Ensure that the participants of the Limited Liability Company meet at least once a year;
3. Ensuring the rights of participants with a 5 percent share of the Limited Liability Company to add the topic of discussion to the Agenda of the meeting

Civil Code

Financial Market Supervisory Authority (FIMSA),

Ministry of Economy,

Ministry of Justice,

Ministry of Taxes.

Tax Reporting

"Tax Payment" indicator

9.

Number of payments

Taking appropriate measures to reduce the number of payments from 6 to 5

Tax Code

Ministry of Taxes,

Ministry of Finance.

10.

Time

Taking measures to reflect the actual time spent in the Report

Ministry of Taxes,

Ministry of Labour and Social Protection of Population,

Ministry of Finance.

11.

VAT Refund Procedure

Electronization of applications for the refund of overpaid taxes, interests, and financial sanctions to the taxpayer

Administrative regulation on the provision of electronic services

Ministry of Taxes,

Ministry of Justice,

Ministry of Finance.

12.

VAT Refund Period

Making the relevant changes in the Resolution No.48 of February 23, 2001 of the Cabinet of Ministers of the Republic of Azerbaijan

Decision No.48 of February 23, 2001 of the Cabinet of Ministers on “Approval of the Refund Procedure for overpaid taxes, interests, and financial sanctions to the taxpayer”

Ministry of Taxes,

Ministry of Justice,

Ministry of Finance.

13.

Period of Compliance with income tax verification requirements

Taking appropriate measures to reduce the period of Compliance income tax verification to 5 hours

Tax Code

Ministry of Taxes,

Ministry of Finance.

14.

Period of Completing income tax verification

Relevant negotiations to reduce the period of income tax verification to two weeks

Tax Code

Ministry of Taxes,

Ministry of Finance.

Cross-border trade (cbt)

15.

Document procedures, cross-border operations, domestic transportation (expenses incurred for these operations and their deadlines)

1. Consideration of the issue of signing of Mutual Recognition Agreements (MRA) for mutual recognition of documents (veterinary, phytosanitary, hygienic certificates, certificate of conformity) submitted for customs clearance purposes by the official authorities of those countries on the imported goods from the main trading partner countries

Law on "Veterinary";

Law on ”Phytosanitary Control";

Law on ”Food Products";

Law on ”Import Control";

"Guidelines for declaration of goods and means of transport released into the customs territory" approved by Decision No. 263 of July 22, 2014 of the Cabinet of Ministers

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