Baku: Digital nomads will be granted tax incentives, APA reports. This is reflected in the proposed amendments to the Law on Currency Regulation, the Law on Banks, and the Tax Code discussed at today's session of the Milli Majlis.

According to Azeri-Press News Agency, a digital nomad is defined as a foreign citizen or stateless person who works remotely in the fields of digital technologies, artificial intelligence technologies, cybersecurity, and innovation through information and communication technologies, earning income from foreign sources.

The proposed amendment to the Law on Currency Regulation states that no amount restrictions will apply for currency regulation purposes to foreign currency funds earned by digital nomads from foreign sources. This applies when such funds are deposited into or transferred from their accounts at authorized banks in Azerbaijan, provided tax obligations are fulfilled.

Under the proposed amendment to the Law on Banks, accounts for digital nomads at authorized banks will be opened solely on the basis of an identity document and a signature specimen card.

The amendments to the Tax Code suggest that activities carried out in Azerbaijan by a digital nomad under employment or civil-law contracts with a foreign non-resident enterprise will not be deemed a permanent establishment of that non-resident in the country.

Furthermore, income earned by a digital nomad under such contracts with non-resident persons located or registered outside Azerbaijan will be exempt from income tax for 20 years from the date the digital nomad status becomes effective, provided certain conditions are met. These conditions include ensuring that the non-resident paying the income is not a related party, residents of Azerbaijan do not predominate among the beneficial owners, and the payer is not registered in low-tax jurisdictions.

The draft law was put to a vote and adopted in the third reading.