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Uzbekistan to unify activities of free economic zones

Uzbekistan Materials 29 October 2016 15:08 (UTC +04:00)
Uzbekistan is taking additional measures to activate and expand activities of free economic zones (FEZ)
Uzbekistan to unify activities of free economic zones

Tashkent, Uzbekistan, Oct. 29

By Demir Azizov– Trend:

Uzbekistan is taking additional measures to activate and expand activities of free economic zones (FEZ), according to the decree of the country’s acting President Shavkat Mirziyoyev.

Currently, there are three free zones offering investors privileges and special opportunities for doing business in Uzbekistan. They are the Navoi free industrial and economic zone established in Navoi region in 2008, the Angren special industrial zone created in Tashkent region in 2012, and the Jizzakh special industrial zone with its branch in Syrdarya district, established in 2013.

In accordance with the decree, the names of all zones will be standardized, they will now have the status of free economic zones (FEZ). A single legal regime will be set for all the zones, tax and customs privileges and preferences will be unified in order to create most favorable investment conditions for foreign investors.

The participants of the FEZ will be exempt from paying a number of taxes, customs duties and mandatory payments for imported equipment and raw materials for production needs.

In particular, tax benefits to participants of the FEZ are provided for a period of 3-10 years depending on the amount of investments made.

If the investments volume is between $300,000 and $3 million, tax benefits are provided for three years, if the volume of investments varies from $3 million to $5 million, tax benefits are provided for five years.

Moreover, if the investments volume varies from $5 million to $10 million, tax benefits are provided for seven years, and if the investments volume is $10 million and higher, tax benefits are provided for 10 years, while profit and uniform tax rates for the next five years are established at 50 percent below the current rates.

Previously, the upper limit of provision of tax benefits in Angren and Jizzakh special industrial zones was seven years with a similar volume of investments.

The participants of free economic zones Angren and Jizzakh have the right to make calculations and payments in foreign currency within the free economic zones in accordance with the concluded agreements and contracts.

A unified administrative council of all the free economic zones will be created in accordance with the decree, which will abolish the previously established Administrative Council of free industrial-economic zone Navoi, the Administrative Council of the special industrial zone Angren and the Administrative Council of the special industrial zone Jizzakh.

The main tasks and functions of the administrative council will be providing enterprises with the status of FEZ participant, rendering wide assistance to economic entities, coordination of work of ministries and departments, business associations in the issues related to the functioning of the FEZ, organization of programs and projects of advanced development of transport, engineering and communication, as well as social infrastructure of the FEZ.

The decree contains instruction to the relevant ministries and departments to prepare in a month a program of measures to improve and expand the activities of the free economic zones of Navoi, Angren and Jizzakh.

The program must envisage concrete measures to improve the legislation, develop manufacturing, engineering and communication, as well as transport infrastructure of the FEZ in Uzbekistan and other development issues.

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