Uzbekistan, Tashkent, Dec. 11 / Trend D.Azizov /
A joint decree of Finance Ministry, State Tax Committee and the Economy Ministry providing additional benefits for enterprises, that attract direct private foreign investments, came into effect in Uzbekistan.
According to the decree, the number of economy fields in which benefits will be provided to enterprises, attracting direct private foreign investments, will be expanded from eight to twenty.
In particular, the list includes following fields: production of packaging materials, construction of power plants based on alternative sources of energy, petrochemical field, electronics, coal industry.
The conditions for use of tax benefits have also been changed. According to the document, the companies located in all cities and villages of the republic apart from Tashkent and Tashkent region can apply for benefits. In addition, some 33 percent of foreign participation in the authorized capital of the enterprises is required for provision of tax benefits, while only a part - at least 50 percent of the income received through the tax exemption will be reinvested.
According to the document adopted on January 2012, 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.
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).
According to the forecast of the government the volume of attracted foreign investments and loans in 2012 will increase by 16 percent and amounted to more than $ 3.3 billion, including foreign direct investment - more than $ 2.3 billion.