RESPONSIBLE ENTREPRENEURSHIP VISION DEVELOPMENT AND ETHICS

442 RESPONSIBLE ENTREPRENEURSHIP
All of these steps are aimed at contribute to improve government-entrepreneur cooperation.
Additionally, other state programs were adopted aimed at regional development, socialeconomic
and entrepreneurship development:
– “State Program on social-economic development of the regions of the Republic of Azerbaijan”
for years of 2004-2008, 2009-2013 and 2014-2018
– “State Program on Socio-Economic Development of Baku city and its settlements” in
2011-2013 and 2014-2016 years
– “State Program on Poverty Reduction and Sustainable Development in the Republic of
Azerbaijan” for 2003-2005 and 2008-2015
– “State program for reliable provision of the population with food products in Azerbaijan
Republic during 2008 - 2015”
– “State Program on development of Agriculture Sector in Azerbaijan Republic during
2002-2006”
– “Employment Strategy of Azerbaijan Republic” in 2006-2015-years”.
Government organizational support
In 1995, as a first phase of privatization process, more than 1695 thousand hectare land
have been given to producers for free with abolishment of state and collective farms. As a
result of this process, 99.8% of agricultural products are sold by private sector. (H.A.F., 2012)
Government has been conducting supporting policies to maintain development of private
enterprises. These policies include improvements in taxation system, registering businesses,
deregulation, increased efficiency in customs and efficiencies in obtaining licenses:
Taxation system - As a result of the implementation of simplified taxation system, since
January 1, 2001 entrepreneurs with annual turnover less than 120.000 manats, (which as of
January 1, 2016 ceiling is set at 200.000 manats), working in capital Baku, pay only 4% of
their overall revenue as tax, whereas in regions it is 2% (taxes.gov.az)
Income tax ceiling decreased from 55% in 1992 gradually to 25% in 2013. Since majority
of entrepreneurs are physical persons, they definitely benefit from this. Besides, physical
person entrepreneurs’ tax rate decreased to 20%. Also, corporate tax ceiling was reduced from
35% to 20% in 2010. There were indirect effects of the decrease in VAT tariffs from 28% to
18%. Beginning 2001, except land tax, agribusiness enjoyed tax exemptions. As a result, till
2014, throughout this channel 1,4 billion manats left to farmers. Since 2014, including land
tax, agribusiness entrepreneurs pay no taxes for 5 years ahead (Alirzayev, 2015).
Registration system - Single window system to submit regulatory and reporting documents
was established to reduce bureaucratic barriers to opening businesses. As a consequence of
Presidential Decree on “the application of the principle of “single window” for of
entrepreneurs“, signed on October 25, 2007, procedures for registering new businesses was
reduced from 15 to 1 and time lapse for registration was decreased from 30 days to 3. Since
2009, Ministry of Emergency Issues created single window operation for getting permission
for construction in a short time. Another important step for stimulating entrepreneurship was
minimizing the number of documents required for licenses.
Before 2008, entrepreneurs looking to start a business in Azerbaijan had to register at 5
different agencies, complete 15 procedures, and file 33 documents which had taken more than
2 months. Due to a new e-registration system, beginning January 1, 2008 entrepreneurs can
be ready to do business by submitting 7 documents and completing 6 procedures at the new,