Azerbaijan announces tax incentives ahead of UN World Urban Forum 2026

Azerbaijan is set to introduce a comprehensive package of tax incentives as it prepares to host the 13th Session of the United Nations World Urban Forum (WUF13) in Baku.

Under the proposed measures, the import of works of art, collectibles, and antiques into Azerbaijan will be exempt from value-added tax (VAT). The initiative was discussed at a meeting of the Azerbaijani Parliament Committee on Economic Policy, Industry, and Entrepreneurship, Caliber.Az reports per local media. 

The tax exemptions are directly linked to the country’s preparations for WUF13, which is scheduled to take place in Baku in 2026. Services provided and works carried out by non-resident individuals and companies under contracts with authorities designated by the relevant executive body will also be exempt from VAT. Similarly, the import of goods supported by official documentation will qualify for the exemption. These measures will remain in effect for one year, beginning September 1, 2025.

Officials emphasised that Azerbaijan’s achievements in urban development were pivotal in securing the forum. The decision to host WUF13 in Baku was formalised through a host country agreement signed on December 22, 2023, between the Azerbaijani government and the United Nations, and later ratified by law.

To ensure the successful organisation of the forum at the highest international standards, authorities are granting targeted tax exemptions to non-resident participants. These measures include income tax exemptions for non-resident individuals involved in supplying goods, carrying out works, or providing services within the framework of WUF13.

Additionally, profit tax exemptions will apply to royalty payments to non-resident legal entities for the use or transfer of intellectual property rights, as well as to income earned by non-resident companies from works and services related to the forum.

All exemptions will be valid only with official confirming documents and will remain in force for the one-year period starting September 1, 2025.

By Sabina Mammadli