11:51 - 24.09.2026

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September 24, Fineko/abc.az. The Milli Majlis Committee on Economic Policy, Industry & Entrepreneurship has discussed a draft of significant amendments to the Tax Code in Azerbaijan in order to support the innovation ecosystem.

According to the draft, income from the sale of shares of companies that are micro or small business entities and have the status of a "startup" or a technopark certificate, provided they are withheld for at least three years, will be exempt from tax for a period of 10 years from 2027.

At that, the period of application of the tax relief to the income of startups operating as individual entrepreneurs is increased from 3 to 7 years, and corresponding benefits are also provided for investors investing through crowdfunding and venture funds.

Finances invested by accredited investors in startups can be deducted from the taxable annual income of an individual entrepreneur in the amount of up to 50%. In addition, it is proposed to deduct research expenses from income by a factor of 2.5, as well as exempt digital services such as cloud and software services purchased by startups abroad from VAT for 20 years.

If the bill is adopted, it will enter into force on January 1, 2027.