Azerbaijan to exempt startups from taxes
Baku, Azerbaijan, Dec. 21
By Azad Hasanli - Trend:
Startups in Azerbaijan will be exempt from profit tax and income tax for three years starting from January 1, 2019, according to the amendments to tax legislation approved Dec. 20 by the decree of Azerbaijani President Ilham Aliyev.
The amendments affect startups operating in the micro and small business segment and possessing a special certificate that confirms their innovative activities.
Startups registered as legal entities will be exempt from profit tax (now the rate on this tax is 20 percent), and individual entrepreneurs will be exempt from income tax (now the rate on this tax is 14 percent for monthly income of up to 2,500 manats, if the income is higher, the rate on this tax is 350 manats and 25 percent for the part of the income exceeding 2,500 manats).
Starting from January 1, 2019, new amendments to the Tax Code will come into force in Azerbaijan.
The amendments provide for new benefits and tax exemptions, as well as expanding the taxable base, introduction of next generation cash registers, improving tax administration and other measures.
(1 USD = 1.7 AZN on Dec. 21)
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