Tax and customs exemptions and incentives will be classified in Azerbaijan

Tax and customs exemptions and incentives will be classified in Azerbaijan



The Cabinet of Ministers has amended its decision dated February 8, 2020, titled “On the approval of the Methodology for assessing the impact of tax and customs incentives and exemptions on state budget revenues and the Rules for maintaining the register of such incentives and exemptions.”

According to the business and financial news portal, Prime Minister Ali Asadov has signed a new decision in this regard.

Under the decision, tax and customs incentives and exemptions are classified for the purposes of these Rules according to the following criteria:

incentive criterion — other privileges not covered by the exemption criterion and applied in entrepreneurial and non-entrepreneurial activities;

exemption criterion:

- privileges provided for in international treaties to which Azerbaijan is a party;

- privileges stipulated in the laws “On Special Economic Zones” and “On the Alat Free Economic Zone”;

- privileges related to income arising from the write-off of tax liabilities and the cancellation of customs debts;

- privileges related to grants, humanitarian aid, and technical assistance;

- privileges related to financial services and the activities of financial institutions and entities established by the state;

- privileges related to non-commercial activities;

- privileges determined for socially vulnerable population groups under Article 102 of the Tax Code.