BAKU, Azerbaijan, December 29. Legal entities and individuals conducting activities in Azerbaijan's liberated territories and registered in the centralized system will also be considered residents of these territories and will be able to enjoy benefits, TurkicWorld reports.
This issue has been reflected in the law on amendments to the Tax Code, approved by the President of the Republic of Azerbaijan, Ilham Aliyev.
According to the document, for taxation purposes applicable in territories liberated from occupation, residents of these territories are defined as legal entities and individuals registered for tax purposes in these territories, either through a centralized system, and directly conducting activities in the specified territories.
Under current legislation, residents of territories liberated from occupation are exempt, for a period of 10 years starting from January 1, 2023, from profit (income) tax, property tax, land tax, and simplified tax.
For residents of territories liberated from occupation who are registered for VAT purposes, the import of machinery, technological equipment and installations, as well as raw materials and supplies according to types of economic activity and product nomenclature, as listed by the authority (institution) designated by the relevant executive body, is exempt from VAT for 10 years starting from January 1, 2023. The provisions of this article apply based on a confirming document issued in accordance with the procedure established by the authority (institution) designated by the relevant executive body.
Dividend income of shareholders of legal entities who are residents of territories liberated from occupation is exempt from taxation for 10 years starting from January 1, 2023.
