Shipbuilding companies in Azerbaijan's industrial park to get benefits | Lao Tribune

Shipbuilding companies in Azerbaijan’s industrial park to get benefits

It was proposed to exempt resident companies of Garadagh Industrial Park, who are engaged in shipbuilding in Azerbaijan, from the value added tax (VAT), customs duties, as well as contributions on compulsory state social insurance to five years, according to the amendments to the country’s Tax Code, as well as the laws ‘On Social Insurance’ and ‘On Customs Tariff’.

These amendments were discussed Apr. 18 at a meeting of the Azerbaijan’s Parliamentary Committee on Economic Policy, Enterprise and Industry.

Thus, according to the amendments, it is proposed to exempt import of any goods used by resident companies of the park during shipbuilding from VAT and customs duties for five years since May 1, 2016.

In addition, it is suggested to apply a zero rate of VAT with respect to contractors during the sale of goods used in shipbuilding to the resident companies which carry out various work and provision of services for them, as well as with respect to sub-contractors who sell the goods to contractors, carry out different types of work or provide services for them.

It is also proposed to exempt foreigners, contractors and sub-contractors hired by the resident companies of Garadagh Industrial Park to work in shipbuilding sphere, from compulsory contributions on state social insurance.

“Baku Shipyard Factory” LLC received the status of the first resident company of Garadagh Industrial Park in 2015.

Source: Trend