Azerbaijan pitches creation of tax centres worldwide to strengthen global tax ties

Head of Azerbaijan’s State Tax Service Orkhan Nazarli has said that Azerbaijan put forward a proposal to create tax centres in various countries under the Intra-European Organisation of Tax Administrations (IOTA) to enhance global tax administration cooperation.

Nazarli emphasised in an interview with the official IOTA website the importance of improving IOTA's financial stability and outlined plans to address key issues in the organisation's operations, Caliber.Az reports via local media.

“To strengthen IOTA’s financial foundation, we plan to introduce a fair methodology for calculating membership fees, ensure the effective use of financial reserves, and explore potential investment opportunities,” Nazarli said.

One of the key aspects of Azerbaijan's proposal is a suggested amendment to the IOTA Charter, which would allow associate members to apply for full membership after a minimum of two years in their current status. This change is expected to streamline the membership process and provide a clear pathway for organisational growth.

In addition, Nazarli proposed expanding collaboration with research institutions and establishing a Tax Academy within IOTA. The aim is to further professionalise tax administration and foster knowledge-sharing across the member states. 

Furthermore, Nazarli highlighted the potential for forming a strategic partnership with the Organisation for Economic Cooperation and Development (OECD), which manages the Multilateral Tax Centers network in several countries. Azerbaijan's proposal is part of an ongoing effort to strengthen international tax collaboration and improve the efficiency of tax administrations globally.

He also noted that addressing climate change and advancing a "green economy" will require significant changes to tax policies. 

Nazarli emphasised the importance of tax systems that support environmental initiatives, stating, “The introduction of tools like 'green' and carbon taxes is one of the key challenges faced by tax authorities.”

He highlighted that tax collection and control systems must be made more efficient through the use of artificial intelligence, blockchain, and other digital technologies.

However, Nazarli cautioned that implementing these technologies might present legal, technical, and social challenges. In addition to these internal developments, Nazarli pointed out the broader challenges IOTA and its member countries face in adapting to global trends.

“These challenges are largely linked to technological innovations, changing economic conditions, and the increasing need for international cooperation,” Nazarli noted. 

He also addressed the rapid rise of the digital economy, e-commerce, and the integration of cryptocurrencies into tax policy, urging the creation of new tax mechanisms to meet these demands. One of the key priorities for IOTA is aligning its activities with the shifting landscape of the global economy.

Nazarli emphasised that alongside strengthening ties with European nations, expanding relationships with tax administrations from other regions is also critical to keep pace with changing global dynamics. Nazarli is set to take on the role of IOTA president in June 2025, marking a significant milestone in Azerbaijan's growing involvement in international tax policy.

By Naila Huseynova