Azerbaijan Boosts Investment In Renewables Through Tax Incentives Ahead Of COP29

(MENAFN- AzerNews)

Nazrin Abdul Read more

Tax incentives are being introduced in Azerbaijan in connectionwith the upcoming 29th session of the conference of the Parties tothe United Nations Framework convention on Climate Change (COP29).This initiative involves proposed amendments to the Tax Code, whichwere deliberated upon during a session of the Azerbaijaniparliament.

Under the proposed amendment, non-resident individuals engagedin supplying goods, performing work, or providing services relatedto COP29 will be eligible for a nine-month exemption from incometax, commencing on March 1, 2024.

In his comment to Azernews on the issue, VugarBayramov, Azerbaijani MP and economist, announced that tax benefitswill be extended to non-residents starting from March in connectionwith COP29.

"Proposed legislative amendments will grant non-residentsengaged in COP29 activities exemptions from virtually all taxes tax benefits will be applicable for a period of nine months,starting from March, and once the practical changes are approved,they will retroactively apply to all activities commencing inMarch. Although March has passed, activities falling within thatmonth will still qualify for the tax benefit."

Bayramov also highlighted that implementing such benefits willattract more investment.

"Preliminary assessments suggest that these concessions aim toattract more investment overall and facilitate the transfer oftechnology and innovation."

Moreover, the economist emphasized the significance of theseconcessions in terms of employment.

"Applying these concessions is also crucial for employmentbecause attracting more investment, including foreign companies,will create new job opportunities."

The economist noted that this is one of the significantconcessions regarding the transition to green energy.

"Undoubtedly, it's one of the significant concessions concerningthe transition to green energy. It's necessary to apply suchconcessions to attract innovative technology. Therefore, it willaccelerate and promote the transition to green energy, and as aresult, it's deemed important to release tax benefits foractivities carried out within the framework of COP29, as well asachieving green energy goals in Azerbaijan in a shorterperiod."

Economic expert Rashad Hasanov, in his statement, emphasizedthat the concession will encourage active participation in theprivate sector in this field.

"The decision is temporary and specific in scope. Its aim is tooptimize the costs of activities related to the COP29 conferenceand encourage active participation of the private sector in thisfield."

He also pointed out that beneficiaries of the tax exemption willoffer services at more competitive prices as a result of reducedadditional costs.

"Therefore, non-residents involved in projects related to COP29are exempted from paying income tax in the Republic of Azerbaijandue to the income derived from these activities. As a result, thisallows those individuals to offer services at more competitiveprices by reducing their additional costs."

Azerbaijan is implementing tax benefits for non-residentsinvolved in activities related to the COP29 conference, aiming tofoster investment, particularly in green energy, and promotetechnology transfer and innovation. These tax concessions,applicable for a nine-month period starting from March, areexpected to not only attract more investment but also generateemployment opportunities. The move underscores Azerbaijan'scommitment to advancing its green energy agenda and supportinginitiatives aimed at combating climate change.

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