BAKU, Azerbaijan, June 17. A wide package of tax benefits has been prepared for companies that have received a "Startup" certificate, residents of industrial and technoparks, as well as individuals who invest in them, in Azerbaijan, Trend's correspondent reports from the event.
This is reflected in the draft law on amendments to the Tax Code, which was discussed at today's meeting of the Parliament Committee on Economic Policy, Industry and Entrepreneurship.
According to the draft, 100% of investments made by accredited investors in venture capital funds, resident legal entities that have received a "Startup" certificate or an industrial and technopark registration certificate, will be deducted from the taxable income of individuals and taxable profits of legal entities under certain conditions. This benefit will be applied provided that the investment is maintained for at least 3 years.
The draft law envisages tax exemption for individuals who invest in startups, technopark residents, and micro, small, and medium-sized enterprises through crowdfunding platforms from the income generated from the sale of securities obtained as a result of those investments. Also, dividends paid on those shares and shares will benefit from tax benefits.
Under the amendments, 100% of venture capital funds' dividend income on equity and shares, as well as capital gains from the sale of those assets, will be tax-exempt. Venture funds' profits from their investment activities and dividends paid to their investors will also be exempted.
The draft also proposes 100% tax exemption for higher education and scientific-research institutions' profits from technology transfer and commercialization of scientific results.
In addition, tax payers who have received a "Startup" certificate or industrial or technopark registration certificate will be exempted from value added tax on cloud computing, IaaS, PaaS, SaaS, and API services purchased from non-residents to support their activities. This discount will not apply to cases of subsequent resale of those services to third parties.
