Azerbaijan took many measures, in order to accelerate development of entrepreneurship and general economy, which will provide new competitive production and service industries based on the application of particular legal regime and modern technologies.
This includes creation of industrial parks and districts, which are special areas planned and zoned for the purpose of economic development. Industrial, parks and districts provide many incentives to its residents. Starting from the date of registration residents are exempted from following taxes for 10 years:
- Corporate tax;
- Land and property tax;
- VAT on hardware, technological equipment and structures imported by residents.
In addition, for a period of 10 years they are also exempted from customs duty on hardware, technological equipment and structures imported by residents.
Moreover, additional incentives in the following directions are provided for the residents of liberated territories, including Agdam Industrial Park and Araz Valley Economic Zone within 10 years starting from the January 1, 2023:
- Dividend income of shareholders of the residents of liberated territories;
- Exemption on import VAT and customs duties with respect to imported raw materials;
- 20% discounted rate on utilities;
- Subsidizing social insurance contributions paid by employers.
Up to now, 133 business entities were granted residency status in industrial parks and 8 of them are already operating. Total amount of investment reached 4 bn USD, however the number of new job places surpassed 10 thousand.
The list of industrial parks and districts are as follows:
- Sumgait Chemical Industrial Park – 2011
- Balakhani Industrial Park 2011
- Mingachevir Industrial Park – 2015
- Garadagh Industrial Park – 2015
- Pirallahi Industrial Park – 2016
- Agdam Industrial Park – 2021
- Araz Valley Economic Zone – 2021
- Masalli Industrial District
- Neftchala Industrial District
- Hajigabul Industrial District
- Sabirabad Industrial District
- Sharur Industrial District
- 51 Agroparks