The Regulation on the issuance of the “Investment Promotion Certificate” was approved alongside with the Decree of the President of the Republic of Azerbaijan of 18 January 2016 “On additional measures to encourage investments.” Their overarching purpose is to ensure expansion of investment activity, improvement of business environment, boosting industrial production, and improvement of mechanisms for the promotion of investments in accordance with Item 5.2 of the Action Plan for the implementation of the “State Program for the Development of Industry in the Republic of Azerbaijan for 2015-2020.” The Investment Promotion Certificate provides the right to receive benefits reflected in the Tax Code of the Republic of Azerbaijan and the Law “On custom tariffs.” These benefits are as follows:
- an exemption of legal entities from the profit and income tax in the amount of 50% for a period of 7 years;
- based on the Certificate of the Ministry of Economy, import of technical and technological equipment, and plants, is exempted from VAT for a period of 7 years;
- respective types of property are exempt from property tax for a period of 7 years after the receipt of the Investment Promotion Certificate;
- respective types of land parcels, owned or used, are exempt from the land tax for a period of 7 years after the receipt of the Investment Promotion Certificate;
- based on the Certificate of the Ministry of Economy, the export of technical and technological equipment, and plants, are exempted from customs duties for a period of 7 years.
To receive the Investment Promotion Certificate for any project, entrepreneurs should submit appropriate documents to the Ministry of Economy of the Republic of Azerbaijan, in accordance with legislative requirements.
The Azerbaijan Investment Company was established in accordance with the Decree of the President of the Republic of Azerbaijan of 30 March 2006 to ensure development of non-oil sectors of the economy and encourage investment in the upgrade of technological base of existing enterprises.
Currently, the company successfully continues to fulfill the tasks relating to the development of the country’s non-oil sector. Thus, specific steps are taken to implement projects aimed at enhancing cement production, establishment of a shipbuilding company, processing of food products as well as to carry out logistics projects.
The Azerbaijan Investment Company is active in the following areas:
- Joint funding of the projects implemented in Azerbaijan by investment companies and portfolio investments;
- Attraction of large technology companies operating in the country’s non-oil sector to ensure application of new technologies along with implementation of investment activity in Azerbaijan;
- Providing Azerbaijani companies with an opportunity to participate in the global financial markets;
- Attraction of funding from potential investors interested in acquisition of loans, including those secured by assets, of the Azerbaijan Investment Company;
- Establishment of investment funds with participation of large financial institutions;
- Establishment and management of industrial quarters in the regions of the Republic of Azerbaijan.
More detailed information on the activity of the Azerbaijan Investment Company can be found at the company’s website: www.aic.az
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