High-tech parks to be tax-exempt in Azerbaijan
By Nigar Orujova
Azerbaijan's government has passed a decision to apply tax benefits with regard to high-technology parks.
Head of strategic planning, investment and scientific potential at the Communications and ICT Ministry, Elchin Zeynalov, said Wednesday that participants of the high-tech parks will be tax and customs duty-exempt for seven years.
Speaking at the Startup Azerbaijan conference in Baku, Zeynalov said it was also decided to apply preferential taxation in the frame of high-tech park building in Azerbaijan.
"Companies that will participate in high-tech parks will be completely exempt from tax payments for a seven-year period. In perspective, it is planned to implement fiscal and monetary breaks," Zeynalov said. He added that work is already underway in this area and it will result in a revival of the domestic ICT sector.
Speaking about the 'Azerbaijan 2020: A Look into the Future' concept, Zeynalov said that in the frame of the concept realization, the Azerbaijani GDP is expected to double in 8-10 years.
The non-oil sector of the economy is an integral part of the concept, he said, adding that special attention is paid to the ICT sector in this respect. At present, this sector posts high growth rates and the budget revenues it generates have been increasing year-on-year.
Azerbaijani President Ilham Aliyev signed a decree last November to establish High Technology Park in the country. According to the decree, such a park is a territory which has the necessary infrastructure, logistics, management structures for the preparation of new and high technologies, research in the field of energy efficiency, space and telecommunications, information technologies and communications.
Earlier, Deputy ICT Minister Elmir Velizade said the creation of high-tech parks would encourage young programmers and promote the software market of Azerbaijan.