Tax and customs exemptions and privileges will be classified in Azerbaijan

The Cabinet of Ministers has amended its decision dated February 8, 2020, on the approval of the “Methodology for assessing the impact of tax and customs exemptions and privileges on state budget revenues and the Rules for maintaining the register of such exemptions and privileges."

Prime Minister Ali Asadov has signed a new decision in this regard.

Under the decision, tax and customs exemptions and privileges, for the purposes of these Rules, are classified according to the following criteria:

Privilege criterion – other benefits applied in entrepreneurial and non-entrepreneurial activities that are not covered by the exemption criterion;

Exemption criterion:

• privileges stipulated in international treaties to which Azerbaijan is a party;

• privileges stipulated in the laws “On Special Economic Zones” and “On the Alat Free Economic Zone”;

• privileges related to revenues arising from the write-off of tax debts and the cancellation of customs debts;

• privileges related to grants, humanitarian aid, and technical assistance;

• privileges related to financial services and the activities of financial institutions and entities established by the state;

• privileges related to non-commercial activities;

• privileges defined for socially vulnerable population groups under Article 102 of the Tax Code.