DOI: https://doi.org/10.36719/2789-6919/56/73-76
Vusal Safarli
SV Consulting Group MMC
https://orcid.org/0009-0008-6603-3581
v.seferli978@gmail.com
The Impact of Tax Burden on Entrepreneurial Activity:
The Case of Azerbaijan
Abstract
This article analyzes the impact of the tax burden on entrepreneurial activity based on the experience of Azerbaijan. The study examines the economic essence of the tax burden and its mechanisms of influence on the financial condition, investment capacity, and business activity of entrepreneurial entities. The impact of tax reforms implemented in Azerbaijan, optimization of tax rates, and the introduction of electronic tax services on the business environment is assessed. The findings indicate that maintaining a balanced level of tax burden significantly contributes to stimulating entrepreneurial activity, reducing the size of the informal economy, and ensuring sustainable economic growth. At the same time, the application of differentiated tax approaches helps to reduce business risks across various sectors. Transparency and predictability of tax policy expand entrepreneurs’ opportunities for long-term planning.
Keywords: tax burden, entrepreneurial activity, tax policy, tax reforms, business environment