Azernews.Az

Nazrin Abdul

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Azerbaijan will introduce a package of tax incentives in connection with hosting the 13th session of the World Urban Forum (WUF13) in Baku in 2026.

As reported by Azernews, the issue is reflected in a draft law on amendments to the Tax Code, which was discussed at today’s meeting of the Milli Majlis Committee on Economic Policy, Industry and Entrepreneurship.

It was noted that Azerbaijan’s successful performance in the field of urban development has been internationally recognized, leading to the decision to hold the 13th session of the World Urban Forum—one of the world’s largest global urbanization events—in Baku in 2026. To this end, on December 22, 2023, the “Host Country Agreement between the Government of the Republic of Azerbaijan and the United Nations on Hosting the 13th Session of the World Urban Forum in Baku in 2026” was signed and subsequently ratified by law.

In order to ensure the high-level organization of WUF13, it has been deemed appropriate to grant a number of tax exemptions to non-resident individuals and legal entities involved in the event.

The proposed tax exemptions include:

• Income tax exemption for non-resident individuals engaged in the supply of goods, performance of works, and provision of services within the framework of WUF13, on income earned from such activities;
• Profit tax exemption on royalty income paid under contract to non-resident legal entities for the use of, or the right to use, copyrights and other intangible assets;
• Profit tax exemption on income earned by non-resident legal entities from the performance of works and provision of services;
• Value Added Tax (VAT) exemption on works and services performed by non-resident entities under contract, as well as on the import of goods based on relevant supporting documentation.

All tax incentives and exemptions will be applied on the basis of appropriate supporting documents and will be valid for a one-year period, from September 1, 2025, for the duration of one year.