Draft Law on Amendments to the Tax Code of the Republic of Azerbaijan
On December 20, 2022, the Draft Law reflecting new provisions to the Tax Code regarding persons who perform system integration, software preparation and development activities outside the technology park as a resident of the technology park was discussed in the second reading of the Milli Majlis.
We bring to your attention a number of important amendments and additions envisaged in the Draft Law.
Expanding the scope of technology park resident
According to the amendment, individuals and legal entities who have received the registration certificate of the technology park and are engaged in entrepreneurial activities outside the park will also be considered residents of the technology park. With this amendment, a legal basis has been formed for those who carry out system integration, software preparation and development activities outside the technology park to be considered residents of the technology park.
Tax exemptions and concessions
If the persons engaged in the mentioned activity are residents of the technology park, they will be able to benefit from the following tax exemptions and concessions for a period of 10 years, starting from the reporting year in which the registration certificate is obtained:
- Individuals and legal entities will be exempted from income and profit tax respectively for the income generated from the mentioned activities (including improvement, technical support and training services provided to buyers as a result of the implementation of that activity);
- Property and land tax exemption;
- Exemption from withholding tax on dividend payments.