BAKU, Azerbaijan, January 1. Legal entities and individuals conducting activities in Azerbaijan's liberated territories and registered in the centralized system will now be considered residents of these territories and will enjoy related tax benefits, Trend reports.
The changes were introduced through amendments to the Tax Code, approved by President Ilham Aliyev.
Under the amendments, for tax purposes, residents of the liberated territories include legal entities and individuals registered for tax purposes either directly in these territories or in a centralized manner, provided they carry out activities in the liberated areas.
According to current legislation, residents of the liberated territories are exempt from income tax, property tax, land tax, and simplified tax for a 10-year period starting from January 1, 2023.
Additionally, the import of machinery, technological equipment, installations, raw materials, and supplies by VAT-registered residents of these territories is exempt from VAT for 10 years, based on a list approved by the relevant executive body. This exemption applies upon presentation of a supporting document issued in accordance with prescribed procedures.
Dividend income of shareholders of legal entities residing in the exempted territories is also exempt from taxation for the same 10-year period, beginning January 1, 2023.
These amendments came into effect on January 1, 2026.