From next month, a number of new concessions for entrepreneurs will come into force in Azerbaijan.
Modern.az reports that up to 70 percent of transportation costs for exporters operating in the non-oil and gas sector will be covered by the state, and some customs clearance costs will be compensated.
Thus, from September 1, according to decrees signed by President Ilham Aliyev, a part of customs clearance and transportation costs faced by entrepreneurs during the export of non-oil and gas products of Azerbaijani origin will be compensated at the expense of the state budget.
The new mechanism is especially aimed at reducing the costs of exporters who are micro, small and medium-sized enterprises and increasing the competitiveness of Azerbaijani products in foreign markets.
From September 1, up to 70 percent of transportation costs incurred during the export of non-oil and gas products of Azerbaijani origin will be subsidized by the state. This concession is intended for transportation carried out by rail, air and sea transport, as well as by cars registered in Azerbaijan. When using cars registered abroad, state support will be up to 50 percent.
However, the amount of compensation will be limited by certain thresholds. For transportation by car, rail and air transport, support cannot exceed 15 percent of the customs value of the exported product, and for sea transportation, it cannot exceed 5 percent.
The new mechanism will also apply to non-oil and gas products produced in Nakhchivan.
Thus, up to 70 percent of the costs incurred during the transportation of non-oil and gas products of Azerbaijani origin produced in Nakhchivan to other territories of the country by land will be compensated by the state.
In addition, a part of the customs clearance fees paid by exporters who are micro, small and medium-sized enterprises during the export of non-oil and gas products of Azerbaijani origin will also be compensated at the expense of the state budget.
The amount of compensation will depend on the type of product, the country of export and the established upper limit. The new concessions will be applied for a period of 10 years starting from September 1, 2026.
Another tax innovation comes into force on September 1. Electronic registration with the tax authority will be mandatory for non-resident digital service providers operating in Azerbaijan in the form of electronic commerce and whose annual turnover exceeds 10 thousand US dollars across the country.
