Individuals providing services in the development of artificial intelligence technologies will receive income tax exemptions and benefits for a period of 20 years.
The issue is reflected in the draft amendments to the Tax Code.
The draft states that the income of individuals providing services in the development, development and application of digital technologies, artificial intelligence technologies and innovative products, as well as in the field of cybersecurity (except for individuals who have received an investment promotion document or are residents of a technology park) from that activity is exempt from income tax for a period of 20 years from July 1, 2026.
In the case of export (provision) of goods (works, services) for the above types of activities to non-residents located and registered outside the borders of the Republic of Azerbaijan, the exemption is applied if the income (funds) obtained on those export operations are transferred to the taxpayer's bank and other payment accounts in the Republic of Azerbaijan.
This exemption is applied in cases where, during the re-export of equipment, hardware and technical means, intangible assets (including software), as well as an innovation product and "know-how" created directly by the taxpayer are integrated into the equipment (hardware and technical means) or a fundamental technological change is made to the equipment, hardware and technical means. This exemption does not apply to income obtained only from the loading, packaging or simple installation operations of software belonging to third parties without a fundamental technological change being made to the equipment, hardware and technical means.
Also, dividends paid by legal entities (except for persons resident in the technology park) engaged in the development, development and application of digital technologies, artificial intelligence technologies and innovative products, as well as providing services in these areas, as well as in the field of cybersecurity, are exempt from income tax for a period of 20 years from July 1, 2026.
