Uzbekistan creates conditions for promotion of foreign investment
Uzbekistan, Tashkent, Feb. 24 / Trend D.Azizov /
The lower house of the Uzbek parliament adopted the amendments and supplements to the Law "On Foreign Investments", providing for incentives to attract foreign investment, creating more favorable conditions for foreign investors in Uzbekistan, the parliament's press-service said on Friday.
The press-service said amendments have been made to the six articles of the law and are related to regulations on foreign investment, enterprises with foreign investment, rights, responsibilities and business activities of foreign investors as well as attraction of foreign workers.
In particular, for enterprises with foreign investment (FDI) principle of the registration "single window" has been approved and visa regime simplified.
Foreign investors - FDI founders have the right to enter and remain in the territory of the republic for the entire period of their shares (deposits) in the FDI with getting multiple-entry visas.
Currently, the maximum term of the single-entry visa for foreign citizens in Uzbekistan is three months.
Foreign investors have the right to own and freely dispose of income (including its unhindered repatriation), obtained as a result of investment activities, "subject to payment of taxes and other obligatory payments in accordance with the laws of the republic".
A separate article of the amended law specifies the right to the preferential application of tax and customs legislation within ten years from the date of registration for FDI, in which the contribution of the foreign investor is $5 million or more.
In accordance with the amendments, this privilege does not apply to changes in interest rates of the single social payment and customs duties as well as the introduction of other non-tariff measures relating to the protection of economic interests of the republic, as well as changes in legislation in the sphere of national security, ensuring defense capability, environment and health.
Under the Uzbek law, enterprises with foreign investment are FDI with an authorized fund of at least $150,000, in which the share of foreign capital is 30 percent.
According to official statistics, inUzbekistan the total amount of capital investment increased in 2011 in comparable prices by 12.5 percent and amounted to $10.7 billion, including the volume of mastered foreign investment at $2.686 billion against $2.794 billion last year (a 3.9 percent decrease).
The law has been passed to the Senate (upper house of parliament) for approval.