Under a new provision envisaged in the Tax Code, income earned by employees of companies registered as residents of technology parks through equity participation agreements would be exempt from income tax for a decade starting from the first day of 2027.
According to the draft law under review by the Milli Majlis’s Committee on Economic Policy, Industry and Entrepreneurship, benefits that employees receive from shares or stakes acquired free of charge or at a discount, as well as gains from the subsequent sale of such assets to third parties, would be exempt from taxation provided certain criteria are met.
To qualify for this exemption, the organization whose shares are acquired and later sold must be registered as a resident of a technology park and must conduct its activities entirely within the park. In addition, the employee holding the shares must have at least one year of work experience at the relevant company — one of the key conditions set out in the draft.
The document states that the tax-exempt amount will be calculated based on the portion corresponding to the net asset value of the shares, while any increase in value resulting from the revaluation of the company’s assets will not be included in this calculation.
Should the bill be approved, it will take effect on January 1, 2027.
