Tax incentives
On March 7, the parliament in Azerbaijan adopted the amendment law to the Tax Code, which includes incentives for media outlets. The new article 164.1.8-1 now added to the Tax Code makes media products and related services1 VAT-free for 3 years from January 1, 2023. Material aid given to media subjects by the relevant state body is also exempted from taxes for the same period, too.
By providing tax incentives and easing expenditures for a short period of time, this change will affect CSOs conducting media related activities according to the “Media Law” and benefit them in case they publish print materials, receive aids and provide services related to their media activities.
Penalties in the Code of Administrative Offenses
The new versions of the articles 381 and 388 of Code of Administrative Offenses (CAO) are being proposed by the parliament, too, adjusting to the new Media law.
The changes will affect civil society members and CSOs, who conduct media activities. On a positive side, article 381 provides new rules to protect the rights of media subjects and journalists. This includes penalties for restriction of the right of media subjects and journalists to receive information or refusal to provide them with information.
On the other hand, CSOs conducting media activities must strictly comply with the provisions of the new Media Law, and this can sometimes be challenging given CSOs’ limited human and financial resources. The law also foresees high fines. For instance, according to new article 381.12, if media subjects promote actions against the protection of health and the environment officials can be fined for 800-1000 manats (approx. 400-500 EURO), and legal entities 2000-3000 manats (approx. 1000-1500 EURO). However, such actions against the protection of health and the environment are not clearly defined in the legislation of Azerbaijan and it leaves place for broader interpretation of the article by the government. Besides, the penalties in the new version of the article 388 varies between 200 manats (approx. 100 EURO) – 10.000 manat (approx. 5000 EURO) . Such high penalties are financially burdensome for CSOs, who are journalists and conduct media activities online on youtube channels or websites.
- 1Presentation of media products produced by media subjects (except audiovisual media subjects), as well as the performance of works and services directly related to media activity to media subjects (except audiovisual media subjects) by non-residents who do not have permanent representation in the Republic of Azerbaijan.