Tax concessions will be provided for digital nomads.
According to the news from “Elchi”, this is reflected in the proposed amendments to the Law “On Currency Regulation” and the Tax Code, which were discussed at today’s meeting of the Milli Majlis Committee on Economic Policy, Industry and Entrepreneurship.
A digital nomad is a foreigner or a stateless person who carries out their activities in the field of digital technologies, artificial intelligence technologies, cybersecurity, and innovation remotely via information and communication technologies, and earns income from foreign sources.
According to the proposed amendment to the Law “On Currency Regulation”, there will be no amount restrictions for currency regulation purposes when digital nomads deposit foreign currency funds obtained from foreign sources (provided that tax obligations are fulfilled) into their accounts at authorized banks and transfer them from the Republic of Azerbaijan.
According to the proposed amendment to the Law “On Banks”, accounts for digital nomads in authorized banks will be opened solely on the basis of an identity document and a signature specimen card.
According to the proposed amendment to the Tax Code, the activities carried out by a digital nomad in the territory of the Republic of Azerbaijan based on labor or civil law contracts concluded with a foreign non-resident enterprise (or entrepreneur) shall not be considered a permanent establishment of that non-resident in the Republic of Azerbaijan.
Income obtained by a digital nomad within the framework of a labor contract or civil law contract concluded with non-resident persons located or registered outside the Republic of Azerbaijan, as well as income not from sources in the Republic of Azerbaijan (provided that the non-resident person paying the income is not a mutually dependent person with that individual, that residents of the Republic of Azerbaijan do not predominate among the beneficial owners of the non-resident person paying the income, and that the person is not registered in countries (territories) with preferential taxation), will be exempt from income tax for a period of 20 (twenty) years from the date the digital nomad status is in effect.
Tax concessions will be provided for digital nomads
