Operations with offshore companies are planned to be a subject for taxation in Azerbaijan, said the country’s Taxes Minister Fazil Mammadov.

He made the remarks Dec. 14 in Baku in a meeting of Azerbaijan’s parliamentary committee on economic affairs, industry and entrepreneurship.

“We plan to introduce a mechanism which will help identify people who evade income tax and profit tax through the offshore companies. This mechanism will also help make such operations taxable,” said Mammadov.

The minister said this practice exists in Latvia, Estonia, Kazakhstan and Georgia.

He also said that transfer prices are planned to be applied to operations with companies registered in offshore zones.

Mammadov added that this applies to operations the total amount of which with each offshore company exceeded 500,000 manats during a year.