BAKU, Azerbaijan, October 29. Azerbaijan has
expanded the list of companies eligible for tech park resident
status and the tax incentives available to them, Farid Osmanov,
Chairman of the Board of the Innovation and Digital Development
Agency of Azerbaijan (İRİA), said at a briefing in Baku on Thursday
dedicated to legislative changes in technology and innovation,
Trend’s correspondent
reports.
According to him, companies operating in cybersecurity,
artificial intelligence, the Internet of Things (IoT) and
biotechnology can now qualify for the support measures.
“Previously, the relevant mechanisms were used primarily to
register ICT companies engaged in software development. The scope
of the incentives has now been expanded to cover new technology
areas, as well as companies providing ICT services,” Osmanov
said.
He emphasized that companies do not need to be located in a
designated area to obtain tech park resident status. Businesses
operating in Azerbaijan’s regions will be able to register
digitally and obtain resident status remotely.
Osmanov also said that, starting January 1, 2027, eligible
businesses will receive a one-year exemption from income, profit,
property and land taxes.
“The legislative amendments are also aimed at simplifying and
accelerating the resident registration process.
The new mechanisms provide tax and social benefits for
specialists registered under the relevant system as well.
Additional incentives are provided for investors. Specifically,
income earned by local and foreign investors from investments in
startups and technology companies will be exempt from taxation,
including income from investments made through crowdfunding
platforms and venture capital funds.
The registration process for foreign ICT specialists is also
being simplified. The legislative amendments further regulate the
working conditions of freelancers and provide for tax exemptions on
income they earn in Azerbaijan, in accordance with established
rules,” Osmanov said.
