Elmin Mammadov: Crowdfunding income to be tax-free

Income and profit obtained through crowdfunding platforms will be exempt from taxation, Azerbaijani Deputy Minister of Digital Development and Transport Elmin Mammadov stated during the parliamentary plenary discussion of the Crowdfunding Law draft.

The deputy minister explained: "As for why the crowdfunding platform was chosen for economic incentives, the draft we presented - as well as another bill currently in its second reading - includes amendments to the Tax Code. These amendments establish the norm that profit and income derived from activities carried out via crowdfunding platforms will be exempt from tax."

Mammadov added that questions were raised about financing outside the platform: "Can financing be carried out beyond the platform? This already falls under other sectoral legislation. What is clear is that the state has confirmed the legal and regulatory basis of the crowdfunding platform. As a result, the regulation of relations arising from it is recognized by the state as a legal requirement for both investors and project owners. Therefore, disputes in this area are already resolved through established regulation."