Tax concessions have been established for the 29th session of the Conference of the Parties to the UN Framework Convention on Climate Change (COP29), held in Azerbaijan.
This development was disclosed through a draft amendment to the Tax Code, deliberated upon during the initial reading at the Milli Majlis meeting on April 23.
Per the proposal, resident and foreign natural persons engaged in goods provision, services, and works associated with COP29 in Azerbaijan, as authenticated by the pertinent executive authority confirmation document, will be exempted from income tax from March 1, 2024, for 9 months.
Likewise, royalty income disbursed to a non-resident legal entity, under an agreement brokered with the designated executive authority body, for copyright usage on intangible assets or rights of usage, is slated for a nine-month income tax exemption from March 1, 2024, supported by the said executive authority confirmation document. Additionally, income stemming from works and services provided by non-resident legal entities related to COP29 in Azerbaijan will also enjoy a nine-month tax exemption from March 1.
Further amendments include exemptions from VAT, for services and works rendered by non-residents under contracts with the designated executive authority body for COP29, as well as for goods importation authenticated by the same authority.
Following deliberations, the amendment passed its first reading.
Under current legislation, the prohibition against encroaching upon the charters of state and local self-governing bodies, along with state oversight and inspection functions, solely pertains to non-governmental organizations.
Scheduled to take place in Baku from November 11 to 24, 2024, COP29—the 29th installment of the Conference of the Parties to the UN Framework Convention on Climate Change—rotates annually to a different host nation. This event is poised to convene global leaders, governmental representatives, scientists, NGOs, and various stakeholders to engage in discussions and negotiations surrounding diverse climate change matters.
COP events typically set agendas and finalize documents after extensive discussions throughout the proceedings. While the agenda for COP29 in Azerbaijan remains undisclosed, it is anticipated to be delineated during the May 2024 Petersberg Climate Dialogue in Germany.
