On 18 May 2018, the Azerbaijan parliament approved legislation for the establishment of the Free Economic Zone of Alat. The decree for the implementation of the legislation was reportedly signed by the President Ilham Aliyev on 4 June 2018.
A number of incentives are provided with the Zone, including:
- An exemption from all taxes, including for companies operating in the zone and their employees;
- An exemption from customs duties;
- No restrictions on foreign ownership; and
- No restrictions on the transfer of funds or the currencies used.
Where goods, works, or services are provided to other areas of Azerbaijan, however, standard tax rules apply for the income derived from such goods, works, or services.