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Azerbaijan to replace full tax exemption in agricultural sector with 90% relief for five years

05 November 2026 11:29 (UTC +04:00)

Azerbaijan will abolish the 100% tax exemption in the agricultural sector and introduce a 90% tax relief mechanism for five years, APA reports.

This is reflected in a proposed amendment to the Tax Code.

According to the draft, a gradual taxation mechanism will be established in the agricultural sector, and tax incentives in agriculture will be improved.

Under the draft, the 100% exemption from income and profit taxes, which has been applied in the agricultural sector for many years, will be abolished and replaced by a 90% tax relief mechanism for five years starting January 1, 2027.

The tax exemption period for dividend income received by founders of legal entities operating in the agricultural sector will not be extended. Thus, starting next year, such dividend income will be subject to a 5% tax rate (taking into account general exemptions).

The full exemption from simplified tax will be maintained for five years starting January 1, 2027, under certain conditions. As for the conditions for benefiting from these incentives, they will apply only if producers are registered in the electronic information system of the Ministry of Agriculture (EKTIS platform) and declare the relevant income and profits in their tax returns.

Firuza Vahid

Azerbaijan agriculture agricultural sector tax exemptions tax incentives Tax Code income tax profit tax dividend tax simplified tax EKTIS Ministry of Agriculture 2027 tax reforms