Azerbaijan is set to extend tax incentives for startups and technology companies under proposed amendments to the Tax Code.
Under the amendments discussed in the Azerbaijani Parliament, starting from January 1, 2027, 100% of income generated from the sale of a taxpayer’s stake or shares in a legal entity that is a micro or small business, holds a “Startup” certificate or a technology park registration certificate, and does not engage in other activities, would be exempt from income and profit tax for 10 years.
The proposed changes would also extend the tax exemption for startups operating as individual entrepreneurs. The current three-year exemption on income generated from innovation activities after obtaining a “Startup” certificate would be extended from three to seven years.
The bill was put to a vote and adopted in its first reading. If enacted, the amendments will take effect on January 1, 2027.
