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Uzbekistan introduces tax benefits to attract foreign investments

Business Materials 23 January 2012 10:15 (UTC +04:00)
Regulations on the procedure of introducing tax benefits for enterprises attracting direct private foreign investments is approved by the decision of the Finance Ministry, State Tax Committee of Uzbekistan and Economy Ministry of Uzbekistan.
Uzbekistan introduces tax benefits to attract foreign investments

Uzbekistan, Tashkent, Jan.20 / Trend D.Azizov/

Regulations on the procedure of introducing tax benefits for enterprises attracting direct private foreign investments is approved by the decision of the Finance Ministry, State Tax Committee of Uzbekistan and Economy Ministry of Uzbekistan.

According to the document, the industrial enterprises with private foreign investments are exempted from incomes taxes of legal entities, property and social infrastructure development, the single tax and compulsory transfers to the Republican Road Fund.

Meanwhile, share of revenue of enterprises from production of products related to the classification index of industry sector must be at least 60 percent in the total volume of sales in reporting year.

Tax benefits for a period of three years are provided to the volume of direct foreign investments from $300,000 up to $3 million inclusive, for five years - to the volume of attracted investments from $3 million to $10 million, for seven years - to the volume of attracted investments of over $10 million.

The enterprise must be located in labour-abundant areas - Karakalpakstan, Jizzakh, Kashkadarya, Syrdarya, Surkhandarya, Khorezm regions, as well as in rural areas of Navoi, Andijan, Namangan and Ferghana regions.

Direct private foreign investments should be provided without state guarantees, and the share of foreign participants in the enterprise's authorized capital must be at least 50 percent.
The enterprise's income received as a result of provision of these benefits during the period of their application should be directed to reinvestment for the further development of the company.

Enterprises which formed the authorized capital in the fixed period are provided with the rights to benefits.

If the enterprise does not specialize in production of products relating to the classification index of industrial sector during the reporting year, it pays taxes and other compulsory payments over this period without benefits.

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