Azerbaijan may exempt imported medical equipment from VAT
By Nazrin Gadimova
Azerbaijan may exempt medical equipment imported into the country from the value added tax (VAT).
Economy Minister Samir Sharifov announced about this at a plenary session of the parliament held on February 23.
Sharifov said that the recent changes to the laws are revolutionary, adding that these reforms will contribute to the development of the local entrepreneurship.
The minister reminded that the amendments made to the number of documents aim at ensuring the development of economy’s non-oil sector.
Thus, the amendments to the Tax Code provide for tax benefits to legal and physical entities engaged in investment activities. Following the amendments, physical and legal entities will be exempt from paying taxes in the amount of 50 percent of their revenues and incomes, respectively, for seven years.
Moreover, the government approved amendments to the law “On customs tariff”. Following the changes, legal and physical entities are exempt from customs duties and value-added tax (VAT) on import of technical equipment for seven years.
After receiving an appropriate document, entrepreneurs will be able to take advantage of these customs privileges.
Any managing organization or industrial or technology parks’ operator should have a document confirming the import of technological equipment in order to build an infrastructure or construct any production facilities, as well as to conduct research, test and development works.
Recently, some foreign companies have voiced their willingness in investing in the production of medical equipment in Azerbaijan.
Increasing number of new medical institutions and departments make it necessary to provide them with modern equipment, that is why the country is very “fertile ground” for global investors in the health sector.
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Nazrin Gadimova is AzerNews’ staff journalist, follow her on Twitter: @NazrinGadimova
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