(AZERBAIJAN) LAW ON GRANT
 
 
(AZERBAIJAN) LAW ON GRANT

Article 1. Grant

 

1.Grant - assistance rendered pursuant to this law in order to develop and implement humanitarian, social and eco-logical projects, works on rehabilitation of destroyed objects of industrial and social purpose, of infrastructure in the territo- ries damaged as a result of the war and disaster, programs in the field of education, health, culture, legal advice, informa- tion, publishing, sport, scientific research and design programs as well as other programs being important for the state and public. Grant shall only be provided for specific purpose (purposes).
2. A grant shall be provided in the form of financial means and/or in any other material form. The grant shall be rendered gratis and its repayment in any form may not be requested.
3. Material assistance used directly for generation of profit shall not be considered a grant. Financial and/or other material means remaining unused at the grant beneficiary's disposal should be allocated for implementation of projects and programs that, in the beneficiary views, might be the subject of the grant unless otherwise provided for by an agreement (award) on the grant.
4.Material assistance shall not be considered grant should it is used directly for the purposes of political struggle and lobby activity on adoption of law and other legislative acts, for political promotion, for financing election campaign of any political organization (organizations), political figure (figures).

Article 2. Donor

 

1. Those providing grants shall be donors in respect of a beneficiary.
2. The relevant body of the executive power may provide a grant on behalf of the Azerbaijan government to legal and physical persons, to citizens of Azerbaijan Republic and foreign countries and to foreign legal and natural entities.
3. A grant on behalf of Azerbaijan Republic shall be provided at the expense of the state budget of Azerbaijan Republic. Special means may be allocated as a separate item in revenue of the state budget for provision of such grants. Any additional taxes may not be introduced or rates of taxes in force may not increase in order to form such funds.
4. Any natural entity and legal entity of Azerbaijan Republic whose basic objective according to a Charter is charity or collection of means for projects and programs that may be a subject of a grant and whose activity does not be aimed at generation of profit, could provide the grant to legal and natural entities of Azerbaijan Republic and foreign countries.
5. International organizations and their representations, foreign governments and their representations, international organizations of charitable, humanitarian and other social directions, financial - credit institutions, foreign public organizations including funds, associations, federations and committees carrying out activities in the field of development of education, science, health, culture and sport, and not being aimed at profit generation, as well as foreign natural entities may act as a donor.
6. Donor shall be fully independent in provision of a grant, selection of a grant beneficiary, projects and programs for whose implementation the grant is provided. On behalf of the Azerbaijan government the grant shall be provided to legal and natural entities of Azerbaijan Republic based on a tender.

Article 3. Recipient

 

1. A Grant beneficiary is a recipient in respect of a donor.
2. The following may be a recipient:
- the Azerbaijan government in the person of the relevant body of the executive power;
- municipal bodies;
- legal entities being residents and non-residents, their branch offices, representations and departments carrying out activity in Azerbaijan Republic, whose basic objective is charity or implementation of projects and programs that may be a subject of a grant, and which are not aimed at direct generation of profit resulting from grant;
- natural entities of Azerbaijan Republic.
3. Recipients of Azerbaijan Republic are independent in receipt of a grant, selection of a donor, projects and programs for which they receive the grant.
4. At provision of a grant by donors from Azerbaijan Republic to legal or natural entities of foreign countries the range of recipients shall be identified by legislation of the relevant country.
5. Recipients shall carry out their activities pursuant to provisions of agreements (awards) on grant.

Article 4. Grounds for Award of Grant

 

1. A written agreement between a donor and a recipient or written award of the donor on provision of a grant shall be grounds for the grant issue, receipt and use. The objective, amount, subject of the grant and specific conditions, should those be laid down by the donor before the recipient, shall be specified in the agreement (award).
2. Grant may only be used for implementation of objectives specified in an agreement or award. The use of a grant for other purposes, if it is not stipulated by the agreement (award) on the grant, shall only be possible with the written permit of a donor.
3. Over the period of implementation of a project being the subject of a grant, the sale or change into money of values provided as a grant or bought at the expense of the grant, shall only be admissible in cases if these operations were provided for by an agreement on grant or with the written permit of a donor. In these cases financial means transferred to a recipients disposal should be aimed at implementation of projects and programs that might be the subject of the grant.
4. All agreements concerning the allocation of grants by donors considered as a legal and physical entities in the Republic of Azerbaijan to foreign recipients and those concerning the receiving of grants by recipients of the Republic of Azerbaijan must be registered at a relevant organ of the executive authority.
5.No actions can be taken, as a rule, in regard to non-registered agreements concerning the allocation and/or receiving of grants.
The mentioned body of the executive power shall be obliged the latest once a year to make public the summarized information on grants provided and received by entities of Azerbaijan Republic.
6. Published, audio, audio-visual, cinema and other materials, conferences and other events at the expense of grant should be provided with information on sources of their financing.

Article 5. Grant taxation

 

1. Money and (or) other pecuniary aid received as a grant based on an agreement or an award on the grant, shall be a subject to taxation in accordance with the Tax Code of the Republic of Azerbaijan.
2. Money and (or) other pecuniary aid received in accordance with this law as a grant should not be a subject to fees and compulsory payments to the State budget.
3. Compulsory state social insurance of funds received in accordance with this law as a grant carried out under Law on Social Insurance.

Article 6. Responsibility

 

1. For infringement of the present Law a donor and a recipient shall be liable in accordance with the procedure established by legislation.
2. In the event if one of donors and recipients is an organisation or a citizen of foreign country, disputes between them shall be settled pursuant to laws of a country selected previously and identified in an agreement (award) on a grant. Otherwise the disputes shall be setted pursuant to legislation of Azerbaijan Republic.

 

President of Azerbaijan Republic HEYDAR ALIEV

Baku, April 17, 1998 N483-1G

 

DECREE

 

of President of Azerbaijan Republic On Application of the Law of Azerbaijan Republic "On Grant"

 

In connection with entry into force of the Law of Azerbaijan Republic "On Grant", in order to ensure application of the present Law, I hereby decree:
1. To charge the Cabinet of Ministers of Azerbaijan Republic within a one-month period:
- to submit to the President of Azerbaijan Republic pro-posals on updating of legislative acts in force pursuant to the Law of Azerbaijan Republic "On Grant";
- to ensure updating of regulatory-legal acts of the Cabinet of Ministers and the relevant bodies of the executive power pursuant to the present Law, and inform the President of Azerbaijan Republic;
- to prepare and submit to the President of Azerbaijan Republic drafts legislative acts establishing types of responsibi- lity for infingements of the Law of Azerbaijan Republic "On Grant" and of terms provided for in an agreement (award) on grant;
- to solve, within its competence, other issues following from the Law of Azerbaijan Republic "On Grant".
2. To establish that authorities of "the relevant body of the executive power" provided for by paragraph 2 of Article 2, paragraph 2 of Article 3, paragraphs 4 and 5 of Article 4 of the Law of Azerbaijan Republic "On Grant" shall be exercised by the Cabinet of Ministers of Azerbaijan Republic.

 

President of Azerbaijan Republic HEYDAR ALIEV

Baku, June 13, 1998 N 483-1G

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