With the aim of expanding investment activities, improving the business environment and increasing industrial production, the Presidential Decree no. 745 “On additional measures related to the promotion of investments” dated January 18, 2016, Decree no. 877 “On approval of the “Rules for issuing a supporting document for the import of machinery, technological equipment and devices to legal entities and individual entrepreneurs who have received an investment promotion document” dated April 20, 2016 and Decree no. 878 “On approval of the “Areas of economic activity in which investment is carried out, the minimum amount related to the volume of the investment project and the administrative-territorial units in which it will be carried out” dated April 20, 2016 created a mechanism for stimulating investments and favorable conditions for legal entities and individual entrepreneurs carrying out entrepreneurial activities according to relevant criteria to receive tax and customs benefits.
An investment promotion document is a document that serves as a basis for obtaining benefits specified in the Tax Code of the Republic of Azerbaijan and the Law of the Republic of Azerbaijan "On Customs Tariff", for a period of 7 years from the date of receipt of this document. These benefits include:
- exemption from 50% profit or income tax;
- full exemption from land and property tax;
- full exemption from customs duties and VAT on machinery, technological equipment and devices imported from abroad under the project on the basis of an appropriate supporting document
As of March 1, 2022, 533 investment promotion documents have been submitted to 445 business entities. As a result of the implementation of projects for which investment promotion documents have been submitted, more than 4.8 billion manats will be invested in local production, and more than 35.8 thousand new jobs will be created. 14% of the promoted projects relate to the city of Baku and nearby settlements, and 86% - to the regions. 60.6% of the submitted investment promotion documents relate to projects that will be implemented in industry, 37.2% - in agriculture, 1.1% - in logistics, and 1.1% - in tourism. Also, 4,601 supporting documents were issued for the import of machinery, technological equipment and devices to legal entities and individual entrepreneurs who received an investment promotion document over the past period. At the same time, during the first quarter of 2022, 10 investment promotion documents were submitted to 10 business entities. As a result of the implementation of projects for which investment promotion documents have been submitted, it is planned to invest 58.4 million manats in local production and open 588 new jobs. Furthermore, 151 supporting documents were issued to legal entities and individual entrepreneurs who received an investment promotion document for the specified period for the import of machinery, technological equipment and devices under the project.
