17:37 - 17.12.2019

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December 17, Fineko/abc.az. Special tax benefits are applied to startups in Azerbaijan. The statutory three-year benefit sometimes leads to unfair competition in the domestic market.

ABC.AZ reports that the statement was made by Sakina Babayeva, chairman of board of the Public Association of Development of Women's Entrepreneurship of Azerbaijan, at roundtable "Tax policy in the development of entrepreneurship: international experience & example of Azerbaijan”, held at the Azerbaijan State University of Economics.

Babayeva noted that the legislation on this matter should be amended. She added that it is necessary to make sure that during these 3 years the micro-entrepreneurs would report and it would become known what they have done for the country? According to Babayeva, micro-entrepreneurs can abuse the gaps in the legislation: "The law states that if within 3 years the turnover of this entrepreneur does not exceed AZN 200,000, then in the next 3 years conditions can be created for his registration as a micro-entrepreneur. I believe this creates conditions for abuse and this gap in the legislation should be eliminated."

Tax Ministry Main Department’s head Samira Musayeva said that tax incentives for start-ups of microentrepreneurs create conditions for unfair competition.

"But it should be noted that at present, large business entities that have received a document on investment incentives in our country have also received sufficient benefits. As for abuses, I can say that these are factors that hinder the development of business, and we’ll once again consider all the issues related to this."