Azerbaijan introduces 20-year tax exemption for technology park employees

President Ilham Aliyev has approved amendments to the Tax Code and the Model Charter of the Technology Park, introducing significant incentives and regulatory updates for the sector.

Starting January 1, 2027, employees of technology park residents—including those performing activities outside the park's physical territory—will benefit from a 0 percent income tax rate on monthly wages for a period of 20 years. This exemption applies to non-state residents. For large business entities, the benefit is contingent upon meeting specific criteria, including maintaining a minimum threshold of export-derived income and ensuring that export revenues are transferred to bank accounts within the Republic of Azerbaijan.

Additionally, the updated Model Charter introduces new legal definitions for digital technology and artificial intelligence technology. The charter also clarifies residency status, stating that individuals or legal entities conducting business within the park via lease agreements for infrastructure will be considered non-residents unless otherwise specified in management agreements.