Induatrial and technology parks

According to the legislation, special tax regime is provided in the framework of industrial and technological parks in Azerbaijan. 

Residents of industrial and technological parks are accorded certain tax holidays and exemptions:

* no income tax on any income (other than income from employment) generated from the activity in the industrial and technological parks by individual entrepreneurs that are residents of such industrial and technological parks within seven years starting from the year of registration in the industrial and technological park;

* no profit tax on any income generated from activities in the industrial and technological parks by legal entities that are residents of such industrial and technological parks within seven years from the year of registration in the industrial and technological park;

* no VAT upon import on imports of machinery, technological equipment and plant by legal entities and individual entrepreneurs that are residents of the industrial and technological parks for the construction of the production facilities of industrial and technological parks and the research and development work within seven years from the year of registration in the industrial and technological park;

* no property tax for legal entities and individual entrepreneurs that are residents of industrial and technology parks on property in the industrial and technology parks for seven years from the year of registration in the industrial and technological park;

* no land tax for legal entities and individual entrepreneurs that are residents of industrial and technology parks on land in the industrial and technology parks for seven years from the year of registration in the industrial and technological park.

The residents of industrial and technological parks are defined as legal entities or individual entrepreneurs that have received a certificate of registration of industrial and technological park in the manner prescribed by the relevant executive authority and operate in the technology park.

Additionally, the State Fund for the Development of Information Technology has been established by Presidential Decree No. 2095 (2012).  This Fund is to be financed mainly from the State Budget and is to invest in ICT companies via following mechanisms: 

* investing into the charter capital of companies involved in ICT (both local and foreign owned);

* providing subsidized loans via local banks;

* providing grants for startups. 

In April 2013, the President approved the Regulations of the State Fund and the Rules on Using the Funds of the State Fund by Decree No. 853.