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Law on Special Economic Regime for Export Oil and Gas Activity to be Adopted in Azerbaijan

Oil&Gas Materials 3 December 2008 22:29 (UTC +04:00)

Azerbaijan, Baku , 3 Dec /corr. Trend I.Alizade / A Law on special economic regime for the export oil and gas activity will be adopted in Azerbaijan.

"The necessity for the preparation of the project of new Law on special economic regime for the export oil and gas activity proceeds from the large projects realized in oil and gas sector," Valeh  Aleskerov, Vice Speaker of Azerbaijan Parliament, said on 3 Dec at the meeting of Azerbaijan Parliament's Commission.  

The basic goal of the project is to reduce the tax load for the foreign companies, which were registered in Azerbaijan and carry out operations outside the country. Such companies are Among them such companies are Technip, Total,  Bos Shelf and Mersk, which appealed to the Government with the proposals to provide tax privileges for them for the participation in the regional projects, implemented outside the country.


Due to completion of the projects in Azerbaijan, they receive orders from other countries of region. Continuing to carry out operations from Azerbaijan, the companies must follow Azerbaijani legislation on both customs and tax.

The participants of the meeting said that during the introduction of last additions and changes to the Tax Code, some provisions of these projects were taken into consideration. The new law privileges being intended already found their reflection in the Tax Code.

According to the Law, the contractors and subcontractors will pay the taxes, connected with the export oil and gas activity, in the order provided by Law. Due to the export oil and gas activity, goods imported into Azerbaijan and exported from the country will be exempt from the customs duties.

Aleskerov said that the work on the bill together with the representatives of the corresponding organizations has been carried out for two years: "Powerful infrastructure has been created in Azerbaijan, and large-scale works are realized here. Nearly 12,000 high-qualified specialists have been rained, whose part work in different countries worldwide".

"Strong potential appeared in the oil and gas sphere of the country, and legal base is necessary to be created for its retention, beneficial use," said Ziyad Samedzade, chairman of permanent parliamentary commission for economic policy. According to him, the creation of basis for the involvement of local citizens in the work in this sphere is one of the important aspects of the Law.

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