Azerbaijan, Baku /corr. Trend I.Khalilova / The Head of the Entrepreneurship Development Department of Azerbaijan's Ministry of Economic Development, Samir Nuriyev, said on 17 September that the special economic zones in Azerbaijan will be established for a period of at least 20-25 years. "The duration of each economic zone will be included in the charters which will be adopted separately," Nuriyev said.
The Law on Special Economic Zones (SEZ) which is being considered by the Ministry of Economic Development of Azerbaijan envisages the establishment of production, infrastructure, innovation zones and zone of free trade. The project of constructing a new international trade port in Alat is considered as infrastructure of SEZ.
The necessity to establish duration for the SEZs is linked with the plans of the Government of Azerbaijan to integrate into the EU, which fixed a final date for its member-countries up to 2017 due to Poland's entrance into the EU. " Europe was the first founder of the SEZs, but now avoids it to ensure same conditions in all European countries," Nuriyev said. He considers that whist joining the European Union, Azerbaijan will ask for a certain privileged period for the activity of the SEZs.
Customs and tax privileges have been envisaged for the SEZs. Akif Musayev, head of the Tax Policy Department and strategic research of the Azerbaijani Ministry of Tax reported that the taxation system in the Azerbaijani legislation allows privileges up to 30% of the existing tax potential. If the forecast for tax bodies comprises some AZN 4bln, then up to AZN 1.5bln is for privileges. The agrarian sector of the country is almost free of taxation, whereas special weight of agriculture in GDP constitutes 7.5%.companies," Musayev stressed.
He said that the tax regime will depend upon the area, the infrastructure and potential of the zone, as well as its area of activities. The privileges may be applied on profit taxes, VAT, income tax and in particular, to property tax.