President Ilham Aliyev has declined to sign and returned to the Milli Majlis a bill providing incentives for Azerbaijan’s technology sector, proposing changes to the mechanisms for state support of innovative companies.
The package, adopted by parliament on July 14, includes amendments to the Tax and Migration codes and to laws covering social insurance, customs tariffs, licenses, permits and public procurement.
Azer Amiraslanov, chairman of parliament’s economic policy committee, said the president’s proposals do not change the legislation’s overall concept. Its goal remains to accelerate the development of an innovation-based economy and attract private investment, but incentives would become more targeted and tied to company results.
Proposed Eligibility Rules
The revised regime would cover private technology companies outside the state sector, as well as companies in which the state holds less than 51%.
For large businesses, access to major tax breaks would be linked to the share of exports in total revenue and a requirement to return earnings to local banks.
The rules would apply to new residents receiving certification after Jan. 1, 2027. Existing residents could continue operating under their current legal status.
The parliamentary committee unanimously supported adopting the updated bill with the president’s proposed changes.
Source: Vesti Baku.