Azerbaijan is introducing tax incentives to bolster the development of theaters, cinemas, museums, and symphony orchestras. These measures were discussed during today’s session of the Milli Majlis (Parliament) as part of proposed amendments to the Tax Code.

The proposed changes include significant exemptions for cultural activities:

• VAT Refunds: Consumers paying for theater performances, film screenings, museum visits, or symphony orchestra concerts via cashless methods will receive a 50% refund on Value Added Tax (VAT).
• Profit Tax Exemptions: Registered entities producing films, operating theaters, museums, or orchestras will be exempted from 90% of their profit tax for a five-year period.
• Income Tax Relief: Individuals involved in film production or dubbing will be exempt from paying 90% of their income tax on earnings from these activities for five years.
• Land Tax Waivers: Properties used for theaters, museums, orchestras, and film-related activities will be exempt from land tax for five years.
• Royalty Tax Reductions: Income derived from intellectual property rights related to film production, distribution, and dubbing will be exempt from a 14% royalty tax for five years.

If approved, these changes to the Tax Code will take effect on July 1, 2025.

The legislative amendments aim to incentivize investment and growth in Azerbaijan’s cultural sector by reducing financial burdens and promoting the arts. During the parliamentary session, the draft law was voted on and passed in its first reading.

Source: Apa