FAQ

 

1.            In what cases are NGOs authorized to receive cash to their respective accounts?

 

Pursuant to the Law of the Republic of Azerbaijan “On Non-Governmental Organizations (Public Unions and Foundations)”, clause 24-1.4, non-governmental organizations shall be authorized to receive cash donations not exceeding 200 (two hundred) manat.

 

24-1.4. Donated financial means shall be received as a wire transfer to the respective bank accounts of non-governmental organization, branch or representative offices of foreign NGOs. Non-governmental organizations and/or branch or representative offices of foreign NGOs, which have charity as the main statutory aim, shall be entitled to receive cash donations not exceeding 200 (two hundred) manat.

 

2.            Are non-governmental organizations entitled to conduct banking operations without notification?  

-              No (pursuant to Article 24-1.5 of the Law of the Republic of Azerbaijan ‘On Non-Governmental Organizations (Public Unions and Foundations)’.

The amount of donations received by non-governmental organizations or branch or representative offices of foreign NGOs shall be provided together with the information on benefactor(s) (as stipulated by the respective executive authority) in a financial statement submitted to the respective executive authority.

İt shall not be permitted to conduct banking operations for which the information has not been submitted.

 

3.            Are clients entitled to withdraw 5000 AZN if funds have been transferred by a government agency?

-              Yes, provided the recipient submit the respective state procurement contract in the amount of 5000 AZN.

 

4.            Is there a cash withdrawal limit applicable if funds transferred by a government agency represent a service fee?

 -             No, it shall be permitted to withdraw cash within the monthly limit amount against the works/services procurement contract submitted to the bank.

-              Withdrawal of funds which represent a rent payment by government agencies and bodies effected by bank transfer to private entrepreneurs’ and legal entities’ accounts, including withdrawal of transfers to NGO’s accounts, shall be within the monthly limit.

 

5.            It is mandatory to specify the grounds and purpose of payment in the column “Payment Details” if it is effected from a legal entity’s account?

-              Yes, pursuant to item 4.11.3 of the Guidelines for Bank and Money Transfers in the Republic of Azerbaijan

4.11. A payment document shall be deemed incomplete in the following cases:

4.11.3. grounds and purpose of payment not specified;

 

6.            Is it permitted to make transfers to the currency account of a legal entity?

-              Yes, as set out under 4.1 of the Guidelines of Foreign Currency Operations with Residents and National /Foreign Currency Operations with Non-Residents of the Republic of Azerbaijan

 

4.1. Foreign currency transferred to foreign currency bank account of residents and non-residents shall be credited by the bank to their respective accounts without any limitations.

Such operations, however, shall be performed provided the bank provides a detailed explanation to the respective client as follows; pursuant to the Constitution of the Republic of Azerbaijan, Part III, Article 19, it shall not be permitted to use any currency other than Azerbaijani manat within the Republic of Azerbaijan, and violation of this rule may arouse potential questions on the part of fiscal authorities. 

 

7.            What documents shall be notarized for a legal entity to open an account?

-              Pursuant to the Rules of Opening, Maintenance and Closure of Bank Accounts, a legal entity needs the following documents to open an account: articles of association (statute), provided the respective record from the state register has been submitted (in ADOC format) through the e-information system of respective registration authorities, or their notarized copy (with latest revisions and amendments), samples of signatures and seals – only those notarized (pursuant to intrabank regulations).

 

8.            İs it permitted to withdraw cash from a corporate card?

 

-              No (pursuant to internal regulations).

 

9.            Who can be corporate cardholders?

-              Legal entities and private entrepreneurs.

 

10.          What are the purposes corporate cards cannot be used for?

-              corporate cards cannot be used for payment of dividends, wages, pensions, scholarships and other social allowances.

 

11.          What are the purposes corporate cards can be used for?

-              corporate cards can be used to cover business trip, meals and entertainment etc expenses borne by legal entities and private entrepreneurs, as well as to effect involuntary payments to state budget or non-budgetary state funds.

 

12.          What are the documents required to extend a payroll card?

 

-              An application submitted by the respective corporation to the bank management, and an employee’s ID.

 

13.          Is it permitted to transfer money to payroll card through cash department?

-              No, it is not.

 

14.          What are the documents required to open a corporate card account?

 

-              An application, copy of statements, and an ID (if required).

 

15.          What are the documents required to receive dividends?

For a joint-stock company:

-              Resolution of the General Assembly of Shareholders;

-              Quarterly and annual profit tax declaration;

-              Withholding tax declarations;

-              Financial statement covering period of return to profitability

 

For LLCs:

-              Shareholders' resolution;

-            Quarterly and annual profit tax declaration

-              Withholding tax declarations

-              Financial statement covering period of return to profitability

 

16.          Can I withdraw cash from a salary card (other than in ATM)?

You can withdraw cash from a salary card by submitting the respective application (please see the card renewal application and chargeback application form attached) if:

-              the card has been misplaced;

-              the card has been stolen;

-              based on Charge back application.

 

17.          Can a taxpayer withdraw cash from their bank account for any purposes, within the established limits?

Pursuant to Article 3.4 of the Law “Non-cash settlements”, cash can be withdrawn (within the established limits) for any purposes, except for:

-              payment of taxes, customs duties and fees, administrative fines, sanctions, and interests established by the regulatory, debts on leasing operations or loans;

- payments established by the laws of the Republic of Azerbaijan “On Insurance Activity” and «On Compulsory Insurance”;

-              payments to government agencies, state-owned and state-controlled corporations, public sector entities, and public entities for services, and payments for other fees;

-              salaries (including other payments made by employer in accordance with the procedure established by the regulatory), pensions, financial assistance, allowances (including one-time allowance), compensations and reimbursements paid by other entities, except for those performing operations in trade, catering, and/or service industry, with the total amount of operations within each month of a successive 12-month period not exceeding 200,000 (two hundred thousand) AZN.

-              payment of landline communication services and utility payments;

-              payment and refund of interest-free monetary funds (except for issue of monetary funds to non-taxpayer persons) and other contributions;

-              Use (spending) of funds received under state procurement contracts;

-              education payments;

-              payments to tour agents.

 

18.          Do I need an ASAN-signature (e-signature) to set up online banking for a legal entity?

-              Yes, it is a requirement for the first person on the list of signature samples.