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2008
2007
2006

 

What is New in the Legislation of Uzbekistan?

- Presidential Decrees of the Republic of Uzbekistan

On 14 March 2007 the New Presidential Decree “On additional measures to stimulate modernization, technical and technological re-equipment of production” №УП-3860 was issued with the aim to stimulate continuous re-equipment in order to increase production of high-quality, competitive and export oriented output.

Tax Incentives
In accordance with the Decree, enterprises are:
- eligible within 3 years to reduce taxable base for Corporate Income Tax by the amounts directed to modernization, technical and technological re-equipment of production, repayment of loans taken for these purposes, and leasing income, less annual depreciation;
- exemption from property tax on new technological equipment put into use for a minimum period of 5 years.
Micro firms and small enterprises with production facilities, applying simplified taxation regime, are eligible to reduce the taxable base for Unified Tax Payment by the value of new technological equipment, but not more than 25% of their taxable base.

Customs Incentives
                Effective 1 April 2007, incentives on customs duties, applied on imported technological equipment indicated in the respective list approved by the state authorities.
                The new Decree also states that the above customs incentives are applicable to spare parts as stipulated in import equipment contracts

New benefits on micro credits
                In compliance with the Decree of the President of the Republic of Uzbekistan Islam Karimov, organizations, which offer service in micro credit sphere, are remitted from payment of profits tax and single tax till 2010.
                GNK (State Tax Committee) specified that this article was adopted as an addition to the resolution of the Head of the State “On means to speed up the development of service sector in the Republic of Uzbekistan in 2006-2010 years”.
                According to the document, organizations offering audit, leasing, insurance, accounting services, educational services, a number of social and household services are remitted from payment of profits tax and single tax for a period of three years.


  

Micro credit services in Uzbekistan are offered by banks, credit unions, micro credit organizations, pawn-shops and other credit organizations. According to the legislation of the Republic micro credit could be provided to a debtor for certain purposes in sum not exceeding a thousand fold amount of the minimal wage (UzS1,242,000 or USD10,000 equivalent).

(Material from published articles compiled by Uzbek A. Rustamov, General Representative, Interconcepts Inc. Translation to English: Kseniya Osipova)

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