The President of the Republic of Azerbaijan approved the Decree on Additional Measures to Promote Investment dated January 18, 2016, endorsing the Regulations on providing a document which encourages investment in Azerbaijan (the Investment Certificate) (the Regulations). The Investment Certificate can be obtained by individuals and legal entities to obtain tax and customs privileges. Under the Regulations, a business plan (investment project), document confirming payment of at least 10% of the statutory determined minimum amount of the expected investment project and a copy of a taxpayer registration certificate are required to obtain the Investment Certificate.
The Presidential Decree also instructs the Cabinet of Ministers of the Republic of Azerbaijan to establish areas of economic activity and administrative territorial units (in which the investments shall be carried out), as well as the minimum amount of investment.
Currently, the tax and customs incentives that investors would benefit from are under review by the Milli Majlis, the Parliament of the Republic of Azerbaijan. The draft amendments to the Tax Code available on the website of the Milli Majlis introduce incentives which consider a 7-year exemption from paying 50% of the income/profit tax and full exemption from property tax and land tax whereas, under the amendments and the draft amendments to the Law of the Republic of Azerbaijan on Customs Tariffs, Investment Certificate holders will be exempt for 7 years from paying customs duties and value added tax on machinery, technological equipment and devices imported for investment purposes in priority industries of the economy (as determined by the government of the Republic of Azerbaijan).