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Azerbaijan to apply tax incentives to taxpayers holding Startup Certificates

17 June 2026 14:24 (UTC +04:00)

Benefits will be extended to taxpayers who have obtained a startup certificate, APA reports.

This is reflected in the proposed amendments to the Tax Code discussed today at a meeting of the Milli Majlis Committee on Economic Policy, Industry and Entrepreneurship.

According to the draft, for taxpayers holding a startup certificate and residents of industrial and technology parks, during the first three years from the date the certificate is issued, if the total amount of debt arising from taxes assessed as a result of tax audits, compulsory state social insurance, mandatory health insurance and unemployment insurance contributions, interest, and applied financial sanctions does not exceed 50,000 manats, no order will be sent to a credit institution, electronic money institution, or a person conducting banking operations to freeze outgoing transactions on funds from the date a complaint is filed with a higher tax authority or a court until the date the decision on the complaint enters into legal force. The provisions of this article will not apply to persons considered risky taxpayers.

Currently, 50% of income derived from the transfer of a participation share or stock owned by a taxpayer for at least three years is exempt from income tax. According to the draft, if this participation share or stock belongs to a legal entity that has obtained a startup certificate or a technopark registration certificate, 100% of such income will be exempt from tax, provided it has been held for at least three years.

In accordance with the Law on Investment Funds, 100 percent of the investment amount made in a non-cash form by an accredited investor, as defined under the law, into venture capital funds, as well as resident legal entities holding a Startup Certificate or a certificate of registration as a resident of an industrial or technology park, on the basis of agreements on future equity participation (shares) and convertible debt, including through the direct acquisition of newly created (issued) participation interests (shares) in the charter capital of those legal entities, shall be deducted from the taxable gross income of the individual for the reporting year in which the investment is made.

Firuza Vahid

startup certificate taxpayers tax incentives tax benefits Azerbaijan tax code startups entrepreneurship innovation technology parks industrial parks economy legislation Milli Majlis