Tax-Exempt Technology and Equipment Imported into Industrial Parks

By the Resolution of the Cabinet of Ministers of the Republic of Azerbaijan, which entered into force on 16 June 2026, the lists of machinery, technological equipment and installations imported by the managing organization and operator, as well as by residents, and exempt from Value Added Tax (VAT) and customs duties, have been approved.

The Resolution was adopted for the purpose of implementing Decree No. 563 of the President of the Republic of Azerbaijan dated 29 December 2025 and specifies the scope of application of tax and customs incentives provided for entities operating in industrial and technology parks.

The approved lists cover machinery and equipment used in various industrial and manufacturing sectors. The main categories include:

• industrial and manufacturing equipment;
• metalworking and welding equipment;
• pumps and compressors;
• turbines and engines;
• electric motors, generators and transformers;
• boilers and heating systems;
• cooling and ventilation systems;
• filtration and purification equipment;
• packaging and labeling equipment;
• lifting and cargo-handling equipment;
• conveyor systems;
• construction and earthmoving machinery;
• agricultural machinery;
• food industry equipment;
• textile industry equipment;
• wood and plastic processing equipment;
• laboratory and measuring instruments;
• industrial automation systems;
• 3D printing technologies;
• other technological installations and manufacturing equipment.

It should be noted that the list applicable to the managing organization and operator differs from the list approved for residents by two additional commodity positions. These positions include special-purpose motor vehicles (HS Code 8705) and chassis fitted with engines for motor vehicles falling under commodity headings 8701–8705 (HS Code 8706).

The equipment included in the lists covers a wide range of machinery and installations used for organizing production processes, establishing industrial infrastructure, automation, energy supply, material processing and other technological activities. This may contribute to the import of technological equipment by entities operating in industrial and technology parks on more favorable terms, encourage investment, reduce production costs and support the development of industrial activities.