The Milli Majlis (National Assembly) of Azerbaijan is reviewing legislative amendments aimed at exempting digital technology manufacturers from customs duties to accelerate the country's digital transformation.
Operative Information Center-OMM reports that these measures were discussed during a meeting of the Milli Majlis Committee on Economic Policy, Industry, and Entrepreneurship.
Under the proposed amendments to the "Law on Customs Tariff," legal entities and individual entrepreneurs engaged in the development and application of digital technologies, including artificial intelligence and innovation products, will be exempt from customs duties on imported equipment, raw materials, and components for a period of 10 years, effective from July 1, 2026. This exemption excludes residents of technology parks who are already covered by existing incentive programs.
The legislative package also includes significant tax incentives. According to the proposed changes to the Tax Code, high-skilled migrants, returning Azerbaijani citizens, and specialists in cybersecurity and innovation will be exempt from income tax on their monthly earnings for 20 years. Furthermore, profits, dividends, and income derived from these activities, as well as property and land used in the process, will be exempt from taxation for the same 20-year period.
Additionally, amendments to the "Law on Social Insurance" propose that high-skilled migrants and digital nomads in the fields of cybersecurity and digital technologies will be exempt from mandatory state social insurance for five years, starting July 1, 2026.
These initiatives are part of Azerbaijan's broader strategic goal to diversify its economy by fostering a robust digital ecosystem, reducing reliance on the traditional energy sector, and positioning the country as a regional hub for the Fourth Industrial Revolution.
