Products supplied by entrepreneurs participating in an SME cluster to an SME cluster company are fully exempt from profit or income tax for a period of 7 years.
More than 20 SME entities will be united within two SME cluster companies established in 2024 and 2025. These SME entities will supply various goods and services to SME cluster companies engaged in the production of natural fruit concentrate and lubricating oils for vehicle engines.
Existing and prospective SME cluster participants may apply directly to the relevant cluster companies, as well as to the Small and Medium Business Development Agency (KOBİA) for coordination support (via email at info@smb.gov.az or through the application form available on the official website: https://smb.gov.az/az/contact-form/aze-citizen).
It should be noted that entrepreneurs participating in an SME cluster are fully exempt from profit or income tax for a period of 7 years on goods supplied to the SME cluster company.
An entrepreneur holding an “SME Cluster Company Certificate” is fully exempt from profit or income tax, land tax, property tax, and VAT on the import of machinery, technological equipment, and installations under the project, for a period of 7 years, based on the relevant supporting document.
An SME cluster is a collective structure formed on the basis of geographic proximity and similarity or alignment of economic activities, bringing together an SME cluster company and SME cluster participants who share a labour force, a common market and services, and who, through mutual economic relations, operate in an interconnected, complementary and collaborative manner. A participant of an SME cluster is a micro, small or medium-sized enterprise whether a legal or natural person that has concluded a contract with the SME cluster company to operate within the cluster and has been issued an SME Cluster Participant Certificate by KOBİA. As each SME cluster must consist of at least ten micro, small or medium-sized enterprises, this mechanism serves to unite SMEs from various sectors of the economy, thereby fostering inter-enterprise linkages and cooperation.
Information regarding state support for the establishment of SME clusters, including available incentives, as well as the documents required to obtain an SME Cluster Company Certificate, can be obtained from the KOBİA website (https://smb.gov.az/az/nav/kob-klaster) or by contacting the 131 Call Center.
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