BAKU, Azerbaijan, June 17. A wide package of
tax benefits has been prepared for companies that have received a
"Startup" certificate, residents of industrial and technoparks, as
well as individuals who invest in them, in Azerbaijan, Trend's correspondent
reports from the event.


This is reflected in the draft law on amendments to the Tax
Code, which was discussed at today's meeting of the Parliament
Committee on Economic Policy, Industry and Entrepreneurship.


According to the draft, 100% of investments made by accredited
investors in venture capital funds, resident legal entities that
have received a "Startup" certificate or an industrial and
technopark registration certificate, will be deducted from the
taxable income of individuals and taxable profits of legal entities
under certain conditions. This benefit will be applied provided
that the investment is maintained for at least 3 years.


The draft law envisages tax exemption for individuals who invest
in startups, technopark residents, and micro, small, and
medium-sized enterprises through crowdfunding platforms from the
income generated from the sale of securities obtained as a result
of those investments. Also, dividends paid on those shares and
shares will benefit from tax benefits.







Under the amendments, 100% of venture capital funds' dividend
income on equity and shares, as well as capital gains from the sale
of those assets, will be tax-exempt. Venture funds' profits from
their investment activities and dividends paid to their investors
will also be exempted.


The draft also proposes 100% tax exemption for higher education
and scientific-research institutions' profits from technology
transfer and commercialization of scientific results.


In addition, tax payers who have received a "Startup"
certificate or industrial or technopark registration certificate
will be exempted from value added tax on cloud computing, IaaS,
PaaS, SaaS, and API services purchased from non-residents to
support their activities. This discount will not apply to cases of
subsequent resale of those services to third parties.