Azerbaijan's State Tax Service (STS) plans to support Initial Public Offerings (IPO) through tax incentives, Deputy Chief of STS Samira Musayeva said at an event on "Interaction with business associations and entrepreneurs, its results," Report informs.

She noted that the development of capital markets is one of the priority directions.

"In this direction, work is being carried out jointly with the Central Bank of Azerbaijan (CBA) to improve legislation. In this area, besides the legal framework, it is also important to form an institutional base. The activity of the exchange and the development of its participants are an integral part of this process," she said.

The deputy chief reminded that in order to support capital market development, 5-year tax benefits have been introduced from February 1, 2023, regarding interest, dividend, and discount income received from shares traded on the regulated market.

Musayeva added that currently, the STS and CBA are working on preparing the legal and institutional framework related to capital markets, and after completion of the preparation, measures will be taken to support IPOs through taxes.