Baku, Azerbaijan, Jan. 31
By Huseyn Veliyev – Trend:
Criteria for members of clusters of small and medium enterprises (SMEs) will be defined in Azerbaijan, Natig Hasanov, first deputy chairman of the board of the Agency for the Development of Small- and Medium-sized Businesses, told reporters, Trend reports.
Hasanov said that the criteria for cluster companies will also be defined, and noted that the clusters and the members of the clusters are new concepts that were introduced in the country’s Tax Code.
The first cluster of SMEs will be created after determining the relevant criteria. SMEs can also take advantage of benefits only after the criteria have been defined.
From January 1, 2019, new amendments to the Tax Code of Azerbaijan entered into force, according to which, small- and medium-sized businesses received various benefits, with clusters being one of them.
The amendments introduced two new concepts - the SME cluster company, which a legal entity that has received a special certificate is eligible to become, and SME cluster members, which legal entities or individuals who received a special certificate and signed a contract with a cluster company are eligible to become.
According to the Tax Code, members of clusters for seven years are exempt from income and corporate taxes from the part of their income that goes to capital expenditures. The cluster company is exempt from paying income tax for seven years, as well as from land, property and equipment import taxes.