Concession by HTP to its management organization (operator)

and resident (compact form):

High Technology Park LLC:

1. Income Tax – part of the park's infrastructure to be built and maintained;
2. Value-added tax – import of equipment, technological equipments and facilities for creation and construction of infrastructure and production areas of parks, as well as with the purpose of carrying out scientific-research and experimental-design works (based on the supporting document of the relevant executive authority);
3. Property tax – according to the property of the parks;
4. Land tax – according to the lands used in the territory of parks;
5. Customs fee – import of equipment, technological equipments and facilities for creation and construction of infrastructure and production areas of parks, as well as with the purpose of carrying out scientific-research and experimental-design works (based on the supporting document of the relevant executive authority).

Resident - for 10 years from the date of registration:

1. Tax on profits – profit from the activity of the physical person engaged in entrepreneurial activities without the creation of a legal entity (excluding income tax);
2. İncome tax – tax comes from the activity in the park;
3. Value-added tax – parkda istehsal sahələrinin tikintisi, elmi-tədqiqat və təcrübə-konstruktor işlərinin görülməsi və istehsal məqsədi ilə texnikanın, texnoloji avadanlıqların və qurğuların idxalı (based on the supporting document of the relevant executive authority);
4. Property tax - according to the property of the parks;
5. Land tax – according to the lands used in the territory of parks;
6. Customs fee – import of equipment, technological equipments and facilities for creation and construction of infrastructure and production areas of parks, as well as with the purpose of carrying out scientific-research and experimental-design works (based on the supporting document of the relevant executive authority).

Concession by HTP to its management organization (operator) and resident (broad form):

EXCEPT TAXES

 Article 67-1. Taxation in industry or technology parks

(According to the Law of the Republic of Azerbaijan No. 509-IVQD of December 21, 2012 ("Azerbaijan" newspaper, April 22, 2013, No. 85, Legislative Assembly of the Republic of Azerbaijan, 2013, No. 04, article 366) article 67-1 has been added in a new content.)

67-1.1. When resident of industry or technology parks represents industrial and other taxation objects located in industrial or technology parks before the end of the grace period specified by this Code:

67-1.1.1. İn accordance with previous investment project of the previous resident, tax privileges are granted within the remainder of that period to the farm which undertakes to start or maintain the goods (work, service) and a new resident, who receives other taxable items;

67-1.1.2. According to the new investment project, tax privileges shall be granted to a new resident within the full term provided by this Code, who acquires other taxable items and farm which takes the commitment of organization of other types of goods production (work, service) and the investment which is not less than the amount determined by the relevant executive authority.

67-1.2. If Resident of industry or technology parks represents industrial and other taxation objects located in industrial or technology parks after the end of the grace period specified by this Code:

67-1.2.1. In accordance with the previous investment project of previous resident tax privileges shall not be granted to a new resident, who receives economic and other taxation objects that continue to produce goods (works, services).

67-1.2.2. According to the new investment project new resident, who receives economic and other taxation objects which provides organization of production of other types of goods (works, services) and undertaking the investment which is not less than the amount determined by the relevant executive authority, shall be granted with tax privileges within the full term provided for by this Code.

67-1.3. İf Resident of industry or technology parks builds another production area in industrial or technology parks based on a new investment project, tax exemptions established by this Code shall be calculated from the date on which the resident was registered on a new investment project in the manner prescribed by the relevant executive authority in the industry or technology parks. In this case, the tax privileges established by this Code apply to the new investment project.

67-1.4. İf Resident of industry or technology parks operates outside the industry or technology parks during tax concessions, the resident must make a separate recording of income and expense related to that activity. This time Resident of industry or technology parks pays for taxes on income earned by the activities outside these parks in accordance with the general rules established by the Tax Code.

67-1.5. In case provided for in Article 67-1.3 of this Code, Resident of industry or technology parks, during tax concessions the resident must make a separate accounting for revenues and expenses related to the activity of other production areas established by industry or technology parks based on a new investment project.

Chapter VIII. Individuals' income tax

Article 102. Income Tax Exemptions and Discounts

(According to the Law of the Republic of Azerbaijan No. 509-IVQD of December 21, 2012 ("Azerbaijan" newspaper, 30 December 2012, No. 293, Legislative Assembly of the Republic of Azerbaijan, 2012, No. 12, Article 1226)  in article 102.1.18, the dot mark has been replaced by a semicolon character and 102.1.19 - 102.1.21 articles have been added in a new content.)

102.1.21. Legal person who is resident of industry or techno-parks created under the decision of the relevant executive authority, and individuals who carry out entrepreneurship activity non-profit legal entities income (exception in income tax from salary) for 10 years from the official registration date;

Chapter IX. Income tax for legal entities

Article 106. Exemptions and concessions

(According to the Law of the Republic of Azerbaijan No. 509-IVQD of December 21, 2012 ("Azerbaijan" newspaper, 30 December 2012, No. 293, Legislative Assembly of the Republic of Azerbaijan, 2012, No. 12, Article 1226) in article 106.1.11, the dot mark has been replaced by a semicolon character and articles 106.1.12 and 106.1.13 have been added to the Article in a new content.)

106.1.12. Profit of Management organization or operators of industry or technology parks created under the decision of the relevant executive authority from indusry or technology parks for maintenance, construction and developement of infrastucture;

106.1.13. Legal person who is resident of industry or techno-parks created under the decision of the relevant executive authority, and individuals who carry out entrepreneurship activity non-profit legal entities income (exception in income tax from salary) for 10 years from the official registration date;

Chapter XI. Value-added tax

Article 164. Tax Exemption

(According to the Law of the Republic of Azerbaijan No. 509-IVQD of December 21, 2012 ("Azerbaijan" newspaper, 30 December 2012, No. 293, Legislative Assembly of the Republic of Azerbaijan, 2012, No. 12, Article 1226) in article 164.1.14, the dot mark has been replaced by a semicolon and article 164.1.15-164.1.17 has been added in a new content.)

164.1.15. import of equipment, technological equipment and facilities by managing organization or operator of industry or technology parks created under decision of relevant executive authority for the purpose of establishing and constructing the infrastructure of industrial or technology parks established under the decision of the relevant executive authority, as well as for carrying out scientific-research and experimental construction works;

164.1.16. Import of equipment, technological equipment and facilities on the basis of a certificate of the relevant executive authority by legal entities, resident of industrial technology parks and individuals who carry out entrepreneurial activity without creating a legal entity for the purpose of production and construction of production sites, as well as conducting scientific-research and experimental construction works in the industrial and technology park created under the decision of the relevant executive authority-10 years from the date of registration of the resident in the industrial and technology park;

Chapter XIII. Property tax

Article 199. Tax concessions and exemptions

(According to the Law of the Republic of Azerbaijan No. 509-IVQD of December 21, 2012 ("Azerbaijan" newspaper, 30 December 2012, No. 293, Legislative Assembly of the Republic of Azerbaijan, 2012, No. 12, Article 1226) articles 199.7 and 199.8 have been added in a new content.)

199.7. Legal entities that are resident of industry or technology parks established under the decision of the relevant executive authority and individuals engaged in entrepreneurial activity without creating a legal entity are exempt from property tax for their property in the industrial and technology park for a period of seven years, starting from the year they were registered in the industry and technology park in accordance with the legislation.

199.8. Managing organization or operator of industry or technology parks created under decision of relevant executive authority is exempt from property tax for their property located in the industrial or technology parks.

XIV chapter. Land tax

Article 207. Tax concessions

(According to the Law of the Republic of Azerbaijan No. 509-IVQD of December 21, 2012 ("Azerbaijan" newspaper, 30 December 2012, No. 293, Legislative Assembly of the Republic of Azerbaijan, 2012, No. 12, Article 1226) articles 207.3 and 207.4 have been added in a new content.)

207.3. Legal person who is resident of industry or technology parks created under the decision of the relevant executive authority, and individuals who carry out entrepreneurship activity non-profit legal entities, are extempt from taxes for land they use for a period of seven years, starting from the registration year in the industrial and technology park.

207.4. Management organization or operators of industry or technology parks created under the decision of the relevant executive authority are extempt from land tax according to the land used in the territory industry or technology parks.

EXEMPTION FROM THE LAW OF THE REPUBLIC OF AZERBAIJAN "ON CUSTOMER DESCRIPTION"

Article 20. Exemption from Customs Duties

20.0.17.  import of equipment, technological equipment and facilities on the basis of a certifying document of the relevant executive authority by legal entities that have received the investment promotion document in the order established by the relevant executive authority and entrepreneurs — 10 years from the date of receipt of the investment promotion document;

20.0.18.  import of equipment, technological equipments and facilities by the management organization or operator of the industry or technology parks on the basis of the relevant executive power for the purpose of establishing and constructing the infrastructure of industrial or technology parks established under the decision of the relevant executive authority, as well as for conducting scientific and research and experimental construction works,

20.0.19.  import of technological equipments and facilities on the basis of the approval document of the relevant executive authority by legal entities and individual entrepreneurs who are the residents of industrial or technology parks for construction, production and experimental construction works and production purposes in the industrial or technology parks established under the relevant executive authority's decision —10 years from the date of registration of a resident in the industry or technology parks.