Azerbaijani President Ilham Aliyev signed a number of laws providing for broad benefits against the IT industry. In particular, ICT specialists are waiting for both migration and tax extensions. About these changes in an interview with haqqin.azed by the Deputy Minister of Digital Development and Transport Farid Akhmedov.
– What benefits are provided for within the framework of the amendments adopted?
– Entrepreneurs engaged in systemic integration and software development are exempted from paying a number of taxes and other forced payments.
In particular, the changes that have entered into force provide for exemption from income taxes, dividends, property and land for a period of 10 years. The experts hired by these entrepreneurs will also receive serious concessions when paying income tax on wages.
In addition to tax burden, social payments are also facilitated. Foreigners and stateless persons of this category, as well as their contractors and subcontractors, will be exempted from paying compulsory state social insurance for a period of 10 years.
Depending on the choice of residents, from January 1, 2023, for 10 years, contributions to compulsory state social insurance are paid from the amount of four -fold amount of minimum monthly wages or from hired labor incomes.
In addition, the law “On the Customs Tariff” has changed benefits for the import of technological equipment and structures for a period of 7 to 10 years. And finally, according to the amendment to the Migration Code, it is not required to obtain a work permit for residents of technology parks and specialists with experience in the field of ICT, attracted by them for work in Azerbaijan. I would especially like to note that this package of benefits is much more extensive than the benefits proposed by other countries of the region.
– What is the need for amendments to the laws?
– Today, the country has a choice: traditionally to bet on the oil and gas sector or in accordance with the requirements of the time, go to an economic model based on science and innovation? The answer to this vital question was precisely the reflection of “national priorities of socio-economic development approved by the head of state: Azerbaijan 2030”, where one of the main points is associated with the transformation of the country into concentration of competitive human capital and modern innovations.
There is a direct dependence on investment in technological progress and growth of GDP. The more we invest in innovation, the more we will grow economically, competing with the most top countries.