Baku. 19 November. REPORT.AZ/ Profit of startups having micro or small entrepreneurship subjects and operating as a legal entity is offered to be exempted from tax for three years, Report informs citing draft law on amendments in Tax Code.
According to the draft law, a part of not more than 10% of reporting period’s profit of taxpayer (excluding legal entities, whose 51% or more stake are directly or indirectly owned by state, and public legal entities established on behalf of the state) transferring to the enterprises and organizations, which operate in education, health, sport and culture and meet factors defined by relevant executive body, is exempted from tax for 10 years from January 1, 2019. Items of this article concern cashless payments.
According to the amendment made in the Code, 50% of taxpayers’ revenues from participation share, which have been owned for at least 3 years, or submission of share, and 75% of profit of legal entities owning micro entrepreneurial subjects are also exempted from tax.
Moreover, SME Cluster’s profit is exempted from tax for 7 years since inclusion in SME cluster companies’ registration and a part directed to capital expenditures by a legal entity, which is a participant of the SME cluster, from its profit obtained from submission of the goods (service) on the basis of an agreement with SME is exempted from tax for 7 years.