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Amendments and Additions to the Tax Code
Amendments and Additions to the Tax Code
As is known, the Law of the Republic of Azerbaijan No. 98-VII QD, dated December 16, 2024 introduced several amendments and additions to the Tax Code.
According to the changes, if the taxpayer has one or more economic entities (objects) registered with the tax authority, the information form provided in Article 16.1.11-11 of the Tax Code will no longer be submitted to the tax authority. In this case, the imported goods will be considered as delivered to the respective economic entity (object) or entities (objects). (Article 16.1.11-11)
Additionally, according to other amendments to the mentioned article, the corresponding requirements will not apply to goods imported for non-commercial or personal use.
Furthermore, profits (income) derived from projects in state-private partnership agreements, as well as electricity generation projects utilizing renewable energy sources, where the government has a procurement commitment and the producer is a legal or physical entity, will be exempt from income tax (profits) starting from January 1, 2025. This exemption will apply for the duration specified in the state-private partnership agreement or in the electricity purchase agreement, in accordance with the "State-Private Partnership Law" or the "Law on the Use of Renewable Energy Sources in Electricity Generation", but for no more than 30 years (including the construction period). (Articles 102.1.44 and 106.1.35)
In addition, in the framework of these activities, individual entrepreneurs and legal entities involved in electricity generation projects will be exempt from VAT on the import of equipment, technological tools, and installations, based on the relevant confirming document from the Ministry of Energy or the institution designated as the state partner for other projects. They will also be exempt from property and land taxes on the property and land used in these projects for the same period and under the same conditions. (Articles 164.1.63, 199.22, and 207.13)
As is known, the Law of the Republic of Azerbaijan No. 98-VII QD, dated December 16, 2024 introduced several amendments and additions to the Tax Code.
According to the changes, if the taxpayer has one or more economic entities (objects) registered with the tax authority, the information form provided in Article 16.1.11-11 of the Tax Code will no longer be submitted to the tax authority. In this case, the imported goods will be considered as delivered to the respective economic entity (object) or entities (objects). (Article 16.1.11-11)
Additionally, according to other amendments to the mentioned article, the corresponding requirements will not apply to goods imported for non-commercial or personal use.
Furthermore, profits (income) derived from projects in state-private partnership agreements, as well as electricity generation projects utilizing renewable energy sources, where the government has a procurement commitment and the producer is a legal or physical entity, will be exempt from income tax (profits) starting from January 1, 2025. This exemption will apply for the duration specified in the state-private partnership agreement or in the electricity purchase agreement, in accordance with the "State-Private Partnership Law" or the "Law on the Use of Renewable Energy Sources in Electricity Generation", but for no more than 30 years (including the construction period). (Articles 102.1.44 and 106.1.35)
In addition, in the framework of these activities, individual entrepreneurs and legal entities involved in electricity generation projects will be exempt from VAT on the import of equipment, technological tools, and installations, based on the relevant confirming document from the Ministry of Energy or the institution designated as the state partner for other projects. They will also be exempt from property and land taxes on the property and land used in these projects for the same period and under the same conditions. (Articles 164.1.63, 199.22, and 207.13)