Baku: Azerbaijan is establishing new requirements and tax incentives aimed at bolstering the operations of venture capital funds, as reported by APA. These changes are encapsulated in proposed amendments to the Law on Currency Regulation and the Tax Code, which were deliberated during today's session of the Milli Majlis.

According to Azeri-Press News Agency, the amendments stipulate that venture capital funds and accredited investors in Azerbaijan will be exempt from customs declarations or bank statements for the repatriation and transfer of profits, dividends, and proceeds from investments in innovative projects abroad. This exemption applies provided the original investment was made as an intangible asset or service, or if the income received is certified by the competent tax authority of the foreign state.

The new regulations also allow for unlimited transfers by residents for investments in foreign startups aimed at acquiring future equity participation. Accredited investors, however, will have a cap of USD 2 million per calendar year for such transfers. Investors are required to submit proof of participation interest acquisition within five years or provide documentation if the entity becomes bankrupt or is liquidated.

The draft law, which underwent a vote, was successfully adopted in its first reading.