In accordance with the legislation of the Republic of Azerbaijan, the “Investment Promotion Certificate” is a state support mechanism applied across the country, including in the Nakhchivan Autonomous Republic, to attract investors, foster entrepreneurship, and establish new production sectors.
This was stated in an interview with journalists by Huseyn Guliyev, Advisor of the Investment Programs, Projects, and Promotion Sector of the Investment and Monitoring Department of the Ministry of Economy of the Nakhchivan Autonomous Republic.
He noted that in order to improve the business environment and promote entrepreneurship in Azerbaijan, relevant support measures are implemented by the state, and corresponding laws, decrees, and decisions are adopted. The issuance of the investment promotion certificate is one of the successful steps of this policy:
“For the purpose of expanding investment activity, increasing industrial production, supporting the establishment of new industrial enterprises, and encouraging investments in local industries, the ‘Rules for Issuing the Investment Promotion Certificate’ were approved by the Presidential Decree of January 18, 2016, and the ‘Rules for Issuing Confirmation Documents for the Import of Equipment, Technological Machinery, and Installations by Legal Entities and Individual Entrepreneurs Holding the Investment Promotion Certificate’ were approved by the Presidential Decree of April 20, 2016. Based on these decrees, relevant measures have also been taken in Nakhchivan. The investment promotion certificate entitles its holders to the tax and customs concessions stipulated in the Tax Code of the Republic of Azerbaijan and the Law ‘On Customs Tariff.’ According to amendments to the Tax Code, legal entities and individual entrepreneurs holding the investment promotion certificate are exempted for 7 years from 50% of profit and income tax, as well as 100% of property tax and land tax on their owned or used land plots. In addition, they are exempted for 7 years from paying value-added tax on the import of machinery, technological equipment, and installations.”
The Ministry’s representative emphasized that, according to the amendments made on January 19, 2016, to the Law of the Republic of Azerbaijan “On Customs Tariff,” under the confirmation document issued on the basis of the investment promotion certificate, machinery, technological equipment, and installations imported within the scope of investment projects are exempted from import duties for 7 years.
The application of this mechanism in the Nakhchivan Autonomous Republic has yielded positive economic results. Thus, between 2016 and 2025, the Ministry of Economy of the Nakhchivan Autonomous Republic issued 25 investment promotion certificates and 51 confirmation documents to 19 business entities for investment projects worth 121.2 million AZN. The grace period for the investment promotion certificates granted to 4 of these business entities has already expired. As a result of utilizing this mechanism, 642 new jobs have been created.
“In the Nakhchivan Autonomous Republic, investment promotion certificates have mainly been applied in the production of food products, beverages, tobacco products, clothing, paper and cardboard, rubber and plastic products, fabricated metal products (excluding machinery and equipment), industrial goods, and construction materials. The investment promotion certificate has become an important instrument in increasing economic activity, creating jobs, and encouraging entrepreneurs with state support in the Nakhchivan Autonomous Republic. Along with contributing to the region’s sustainable economic development, the application of this mechanism will also enhance the attractiveness of the investment environment,” added Huseyn Guliyev.
