Industrial Park is an area with necessary infrastructure and management companies that is zoned for entrepreneurial activity, production of competitive goods and products, and provision of services through the application of cutting-edge technologies, as well as equipped to provide entrepreneurs with assistance to ensure efficient activity and development.
The purpose of Industrial Parks is as follows:
- to establish appropriate conditions to ensure provision of services and development of competitive industrial production based on innovative and high technologies as well as to provide entrepreneurs with due support;
- to ensure sustainable economic growth, including the development of non-oil sector;
- to increase the level of profitability for domestic and foreign investors;
- to boost the level of employment of the working-age population in the industrial sector.
In accordance with the legislation of the Republic of Azerbaijan, industrial parks apply the following incentives:
- tax and customs privileges;
- provision of industrial parks with infrastructure;
- determination of the lowest possible rental rates for land lots;
- allocation of soft credits;
- simplification of administrative procedures;
- rendition of services to ensure effective implementation of entrepreneurial activity;
- concessionary tariffs for the consumption of electrical and thermal energy, water and natural gas, as well as waste water drainage and waste management systems.
In accordance with the Tax Code and the Law of the Republic of Azerbaijan “On customs tariffs,” the residents of industrial parks, following registration, are exempt from income and profit tax as well as property and land tax for a period of 7 years. Moreover, the imported technical and technological equipment and plants are exempt from VAT and customs duties.
At present, the following 5 industrial parks operate in Azerbaijan:
- Sumgayit Chemichal Industrial Park
- Balakhani Industrial Park
- Mingachevir Industrial Park
- Garadag Industrial Park;
- Pirallahi Industrial Park
Powered by Froala Editor