Companies operating in Azerbaijan’s Karabakh and East Zangezur regions have been exempt from several taxes for 10 years starting January 1, 2023. The state budget also covers 20% of manufacturers’ utility costs.
Businesses registered as residents of Karabakh and East Zangezur are benefiting from a 10-year tax break on profit and income, property, land and simplified taxes. Dividends paid to shareholders and participants of these resident legal entities are also exempt from tax for the same period.
The incentives go beyond tax relief. Entrepreneurs in certain sectors are exempt from value-added tax and customs duties when importing production equipment, technological installations, raw materials and supplies. This exemption will also remain in force for 10 years, subject to conditions set out in legislation.
Another strand of state support covers utility costs. The state budget finances 20% of the utility bills, calculated at domestic tariffs, for resident companies engaged in manufacturing in the region.
Taken together, these measures give businesses operating in Karabakh and East Zangezur both a lighter tax burden and reduced utility costs tied to production.
