BAKU, Azerbaijan, October 29. Azerbaijan has expanded the list of companies eligible for tech park resident status and the tax incentives available to them, Farid Osmanov, Chairman of the Board of the Innovation and Digital Development Agency of Azerbaijan (İRİA), said at a briefing in Baku on Thursday dedicated to legislative changes in technology and innovation, Trend’s correspondent reports.
According to him, companies operating in cybersecurity, artificial intelligence, the Internet of Things (IoT) and biotechnology can now qualify for the support measures.
“Previously, the relevant mechanisms were used primarily to register ICT companies engaged in software development. The scope of the incentives has now been expanded to cover new technology areas, as well as companies providing ICT services,” Osmanov said.
He emphasized that companies do not need to be located in a designated area to obtain tech park resident status. Businesses operating in Azerbaijan’s regions will be able to register digitally and obtain resident status remotely.
Osmanov also said that, starting January 1, 2027, eligible businesses will receive a one-year exemption from income, profit, property and land taxes.
“The legislative amendments are also aimed at simplifying and accelerating the resident registration process.
The new mechanisms provide tax and social benefits for specialists registered under the relevant system as well.
Additional incentives are provided for investors. Specifically, income earned by local and foreign investors from investments in startups and technology companies will be exempt from taxation, including income from investments made through crowdfunding platforms and venture capital funds.
The registration process for foreign ICT specialists is also being simplified. The legislative amendments further regulate the working conditions of freelancers and provide for tax exemptions on income they earn in Azerbaijan, in accordance with established rules,” Osmanov said.
