Azerbaijan President signs laws providing tax exemptions for startups

President Ilham Aliyev has signed amendments to several laws, including the Tax and Migration Codes, as well as laws regarding social insurance, customs tariffs, licenses and permits, and state procurement.

Starting January 1, 2027, for a period of 10 years, 100 percent of income derived from the transfer of shares or participation interests in legal entities that hold a 'Startup' certificate or technology park registration (and are engaged solely in such activities) will be exempt from income and profit tax.

The duration of income and profit tax exemptions for micro and small startups operating as individual entrepreneurs has been extended from 3 years to 7 years.

Additionally, the tax exemptions will apply to: - Income earned by individuals from securities resulting from investments made via crowdfunding platforms into entities with 'Startup' or technology park certificates. - Dividends paid to individuals on the aforementioned shares (excluding technology park residents). - Certain cloud computing, infrastructure, platform, and software services received from non-resident entities without a permanent representation in Azerbaijan, provided they are used directly for the activities of 'Startup' or technology park certificate holders.