The Tax Code of the Republic of Azerbaijan

Article 19. Permanent establishment.
19.1. The permanent establishment of legal or natural non-resident person in the Republic of Azerbaijan is the place in which such persons themselves or via their authorized representatives fully or partially conduct their entrepreneurial activities in the Republic of Azerbaijan for the cumulative period of not less than 90 days within any 12 months.
19.2. The permanent establishment shall include, but not to be limited to following:
19.2.1. the place of management;
19.2.1. subdivision;
19.2.3. office;
19.2.4. branch or agency;
19.2.5. construction and repair sites, installation and assembly facilities, as well as supervisory activities associated therewith;
19.2.6. platforms, sites, drilling equipment or vessels used for the exploration and production of natural resources, as well as supervisory activities associated therewith;
19.2.7. any fixed base (location) where a non-resident physical person carries out entrepreneurial activity;
19.2.8. premises used for the provision of consulting services;
19.2.9. any places of employment in which other types of entrepreneurial activity conducted on the territory of Azerbaijan Republic;
19.2.10. persons executing functions of the permanent establishment for non-resident enterprises or non-resident natural person in the Republic of Azerbaijan, or people acting on their behalf, authorized to make agreements on their behalf and usually conducting such responsibilities;
19.2.11. places of goods’ manufacturing and sale, execution of works and services;
19.3. Different from provisions of article 19.2. of this Code, following shall not be considered as activities performed by permanent establishment:
19.3.1. storing and demonstration of goods and products belonging to non-resident enterprise;
19.3.2. storing stocks of goods or products belonging to a non-resident enterprise for eventual processing and subsequent export from the Republic of Azerbaijan by a third party;
19.3.3. purchase of goods or manufacturing of products by non-resident enterprise for its own needs;
19.3.4. implementation by non-resident enterprise of any preparatory or support activity for its own needs;
19.3.5. the joint execution of any types of activities specified in articles 19.3.1-19.3.4. of this Code.
19.4. For the purposes of this Article any place in Azerbaijan Republic where legal or natural non-resident person conducts activities for the cumulative period of not less than 90 days within any 12 months shall not be recognized as permanent establishment; in this event the income from Azerbaijanian source in accordance with articles 125 and 169 shall be taxed at the source of payment.