BAKU, Azerbaijan - Qualifying employees of technology park residents in Azerbaijan will receive a zero personal income tax rate for 20 years beginning January 1, 2027, under legislative changes approved by President Ilham Aliyev on October 22.
The exemption applies to employment income earned by workers engaged in eligible activities for technology park residents, including qualifying companies operating outside the park’s physical territory.
Existing Incentives Extended
The package extends the duration of tax incentives for technology park residents meeting the required criteria to 20 years. The benefits cover income or profit from eligible activities, dividends, property and land.
For new residents, the period during which they may choose how social insurance contributions are calculated for employees involved in eligible activities is extended from 10 years to 20 years.
Benefits for Digital Services
The changes also introduce 20-year tax and value-added tax benefits for payments to foreign companies for cloud computing, software, platforms and application programming interface services used by certified startups and technology park residents.
The measures are intended to attract digital specialists and investment and support technology entrepreneurship. They were prepared under Azerbaijan’s plan to accelerate digital development in 2026-2028.
Sources: Vesti Baku; UTB Azerbaijan.