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Azerbaijan bestows tax relief for industrial zone operators and managers

Economy Materials 28 January 2025 10:57 (UTC +04:00)
Azerbaijan bestows tax relief for industrial zone operators and managers
Sadig Javadov
Sadig Javadov
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BAKU, Azerbaijan, January 28. An amendment to the Tax Code of Azerbaijan has provided tax exemptions for managing organizations and operators of industrial zones in the country, the State Tax Service told Trend.

These exemptions cover land tax and property tax for land and property used in state-established industrial zones.

According to the service, these tax benefits are similar to the incentives provided to managing organizations and operators of industrial parks.

“One of the key directions for expanding entrepreneurship and developing industrial sectors in the regions is the creation of industrial zones in various cities across the country.

Industrial zones play a significant role in organizing production processes by reducing infrastructure costs, strengthening cooperative ties, and fostering micro-, small-, and medium-sized businesses.

Tax exemptions on land and property will have a positive impact on the financial stability of managing organizations and operators of industrial zones,” the service said.

To note, the construction of industrial zones is a primary catalyst for this favorable economic transformation in Azerbaijan, offering several opportunities and incentives for local and foreign investors. Currently, Azerbaijan possesses 7 industrial parks, 5 industrial areas, and 24 agroparks.

Since 2005, Azerbaijan's industry has garnered a total of $71.7 billion in investments at current prices, with $38.8 billion being foreign capital. During the same year, industrial enterprises have allocated approximately $276.5 million towards the implementation of technical breakthroughs. In this setting, industrial zones have arisen as facilitators for the implementation of innovative technology and commercial innovations across diverse industrial sectors.

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