The Tax Code of the Republic of Azerbaijan

Article 199. Tax privileges and exemptions
199.1. Budget-funded institutions and organizations, state power and governing bodies, the Central Bank of the Republic of Azerbaijan and its offices, financial market supervisory body, state funds and public entities for disabled people, children with limited levels of health;
199.2. Buildings of art workshops or parts of buildings where such workshops are located that belong to natural persons involved in entrepreneurial activity without establishing the legal entity on craft production of copper, tin and pottery products, house appliances, gardening instruments, national music instruments, toys, souvenirs, house appliances made of reeds and cane, involved in embroidery and production of house appliances from wood shall not be taxed;
199.3. The amount of property tax that shall be paid by persons indicated in article 102.2 of this Code, as well as people on pension or obligatory military service, their family members for the period of such service shall be reduced for the amount of 30 manats, with exception of cases of their leasing, rent or use for entrepreneurial or other commercial activity.
199.4. For the purposes of taxation the value of enterprise property shall be reduced for the amount of value of following facilities:
199.4.1. facilities used for the purposes of environment, fire protection and civil defense;
199.4.2. product lines, railways and motorways, communication and power lines, melioration and watering facilities, satellites and other space objects;
199.4.3. mechanical transport means;
199.4.4. facilities of enterprises involved in education, health, culture and sports that used only for the purposes of such areas of activity;
199.4.5. fixed assets, amortized in accordance with Article 114.3.2. of this Code.
199.5. Trolley buses and tramps used for the transportation of passengers in cities shall be exempted from property tax.
199.6. The amount of property tax that shall be paid for automobile transport means of persons indicated in article 102.2. of this Code shall be reduced for 10 times of conventional financial unit.
199.7. Legal entities andindividuals engaged inentrepreneurial activities withoutforming a legal entity,being a residentof industrialor technology parkscreated inaccordance with the decisionof the relevant executiveauthoritiesare exempt fromtax on property inthe industrial ortechnology parksfor 7years fromthe reporting yearof registration inthe industrialortechnology park in accordance with the law.

199.8. Management company oroperatorof industrial ortechnological parks, established in accordance with the decision ofthe relevant bodyof executive powerare exemptfrom paying taxes onproperty locatedin theindustrial or technology parks.

199.9. Legal and natural personsengaged in the productionof agricultural products(includingby industrial process) are exempt fromproperty taxforproperty usedin the process ofthis activity within a 5-yearperiodbeginning from 1 January2014.
199.10. Amount of the property tax on water transport facilities being in the company’s records and used for the transportation of passengers and goods shall be reduced by 25 per cent.
199.11. The relevant property of the legal persons and individual entrepreneurs who have received investment promotion certificate are exempt from property tax within 7 years by the receipt date of that document.