Tax and customs exemptions applied in the liberated territories create opportunities to promote production activities and develop various industrial sectors.
Various support mechanisms are being implemented for residents of the liberated territories with the aim of improving the investment environment, promoting production activities, and developing entrepreneurship in these areas. Within this framework, legal entities and individuals registered for tax purposes in the Karabakh and East Zangazur economic regions and operating directly in these territories are exempt, until January 1, 2033, from value-added tax (VAT) and customs duties on the import of machinery, technological equipment and installations, as well as raw materials and materials for relevant economic activities.
Enterprises engaged in production activities in the liberated territories, including those operating in industrial parks, have so far benefited from exemptions amounting to 17.4 million AZN in taxes and customs duties on imported machinery, technological equipment, and raw materials.
Under these and other exemption and support mechanisms, production activities in the region currently include the manufacture of textiles, construction materials, electrical equipment, vehicles, and other industrial products.
It is noteworthy that the Ministry of Economy accepts applications for these exemptions both in a physical and an electronic form. The list of machinery, technological equipment and installations, as well as raw materials and materials intended for import under the relevant activities, was approved by Decision No. 269 of the Cabinet of Ministers of the Republic of Azerbaijan dated August 5, 2023.
