Azerbaijan, Baku / corr. Trend I.Khalilova / The Deputy Minister of Economic Development of Azerbaijan, Mikail Jabbarov , said that the Ministry of Economic Development of Azerbaijan sent a draft Law on the Export Activities in Oil and Gas Sphere to the Cabinet of Ministers.
The draft law envisages taxation regime similar to PSA.
"The simplified taxation regime, especially in the part of accounting, will also be applied with regards to the service companies functioning in the oil and gas sphere," the Deputy Minister said.
According to Jabbarov , this regime has already been understood and involved in the service for companies functioning in Azerbaijan and carrying out production and exploration operations in the Azerbaijani section of the Caspian Sea. After the law is adopted, they will be able to provide services to the companies functioning in other Caspian countries.
The taxation regime will fully meet the interests of Azerbaijan, Jabbarov said.
The key goal of the draft law is to decrease the taxation burdens if the foreign companies which are registered in Azerbaijan and carry out operations outside the Country. Those companies include Technip , Bos Shelf and Maersk which made proposals to the Government to provide tax privileges for participating in the regional projects implemented outside Azerbaijan.
Due to the completion of their activities on projects in Azerbaijan, they received orders from other neighboring countries, especially from Kazakhstan. To continue operations from Azerbaijan, the companies should follow the Azerbaijani legislation, including customs and tax. They already carry out operations and until the approval of the draft law, their activities will be regulated by the recent order of the Cabinet of Ministers of Azerbaijan, which also envisages exempting from VAT.