Uzbekistan cuts income tax for individuals
Baku, Azerbaijan, Jan.3
By Nigar Guliyeva – Trend:
The average and maximum rates on incomes of individuals have been reduced in Uzbekistan since Jan. 1, while the amount of contribution to individual accumulative pension accounts has been increased, and property tax will be calculated based on the cadastral value of real estate.
This is stated in the presidential decree, which approved the main macroeconomic indicators and parameters of the state budget for 2018.
Particularly, the average tax rate on income of individuals (from 5 to 10 minimum wages) and the maximum (over 10 minimum wages) is reduced by 0.5 percent - to 16.5 percent and 22.5 percent respectively.
Meanwhile, the minimum income tax rate for individuals (up to five minimum wages) is kept at 7.5 percent.
Under the document, since Jan. 1, the amount of mandatory monthly contributions transferred to individual accumulative pension accounts of citizens has been increased from one to two percent of income, which is subject to taxation.
The scale of taxation by groups of taxable incomes is determined on the basis of the minimum wage established at the beginning of the year (as of January 1, 2018, 172,240 soums), and is not revised during the year in case of a change in the minimum wage amount.
The decree also specifies that starting from 2018, the tax on property of individuals will be calculated based on the cadastral value of real estate, its minimum price will be at least 42 million soums.
Previously, the tax rate was 1.7 percent of the inventory value of real estate. Now it will be 0.2 percent of the cadastral value.
The rate for Jan.3, 2017 is 8120 UZS / USD.