BAKU, Azerbaijan, January 1. Legal entities and
individuals conducting activities in Azerbaijan's liberated
territories and registered in the centralized system will now be
considered residents of these territories and will enjoy related
tax benefits, Trend reports.
The changes were introduced through amendments to the Tax Code,
approved by President Ilham Aliyev.
Under the amendments, for tax purposes, residents of the
liberated territories include legal entities and individuals
registered for tax purposes either directly in these territories or
in a centralized manner, provided they carry out activities in the
liberated areas.
According to current legislation, residents of the liberated
territories are exempt from income tax, property tax, land tax, and
simplified tax for a 10-year period starting from January 1,
2023.
Additionally, the import of machinery, technological equipment,
installations, raw materials, and supplies by VAT-registered
residents of these territories is exempt from VAT for 10 years,
based on a list approved by the relevant executive body. This
exemption applies upon presentation of a supporting document issued
in accordance with prescribed procedures.
Dividend income of shareholders of legal entities residing in
the exempted territories is also exempt from taxation for the same
10-year period, beginning January 1, 2023.
These amendments came into effect on January 1, 2026.
