The residents of Sumgait Chemical, Mingachevir, Garadagh, Hajigabul, Nakhchivan, Pirallahi, Aghdam and “Araz Valley Economic Zone” industrial parks are exempted for 10 years from:

• Corporate income tax
• Property tax
• Land tax
• VAT for imported machinery, technological equipment and plant.

In addition, residents of industrial parks for a period of 10 years are exempted from customs duties on imported machinery, technological equipment and plant.

Corporate income tax

According to the Tax Code of the Republic of Azerbaijan (Article 106.1.13.), residents of industrial parks are exempted from corporate income tax derived from activities in industrial park within 10 years from the reporting year of registration.

Property tax

According to the Tax Code of the Republic of Azerbaijan (Article 199.7.), residents of industrial parks are exempted from tax on property for their property in industrial park within 10 years from the reporting year of registration.

Land tax

According to the Tax Code of the Republic of Azerbaijan (Article 207.3.), residents of industrial parks are exempted from tax on land for the land they use in industrial park within 10 years from the reporting year of registration.

VAT and customs duties on imported machinery, technology and equipment.

According to the Tax Code of the Republic of Azerbaijan (Article 164.1.16.), based on the corresponding supporting document, residents of industrial parks for a period of 10 years from the date of registration are exempted from VAT on imported equipment, technological equipment and devices intended for the construction of production sites, research and development, as well as production goals in the industrial park.

According to the Law of the Republic of Azerbaijan on Customs Tariffs (Article 20.0.19.), based on the corresponding supporting document, residents of industrial parks for a period of 10 years from the date of registration are exempted from customs duties on imported equipment, technological equipment and devices intended for the construction of production sites, research and development, as well as production goals in the industrial park.

Note.

In addition to the tax and customs benefits listed above, many incentive measures are being implemented for entrepreneurs operating in territories liberated from occupation:

• Special preferential bank loans (up to 90% state guarantee, 10% subsidy);
• Cashback of 20% on utility;
• Exemption from income tax in the form of dividends;
• State subsidy for social insurance;
• Full tax exemption upon repatriation of profits and capital;
• VAT and customs benefits for the import of raw materials (according to the list determined by the Cabinet of Ministers).

In industrial areas, land plots and ready-made buildings equipped with the necessary infrastructure are provided to entrepreneurs at the expense of state funds. In addition, entrepreneurs can benefit from many tax and customs benefits by obtaining an “Investment Promotion Document” from the Ministry of Economy.