Uzbekistan to exempt medium business from VAT
BAKU, Azerbaijan, Dec. 13
By Fakhri Vakilov-Trend:
Uzbekistan plans to officially introduce the concept of "medium-sized business", as provided for in the draft resolution of President Shavkat Mirziyoyev "On measures to stimulate medium-sized businesses", Trend reports referring to the legal information portal “Norma”.
From April 1, 2020, legal entities will include medium-sized businesses regardless of ownership, with the number of employees: in the manufacturing sector - from 100 to 150 people; in construction - from 70 to 100 people; in agriculture, wholesale trade - from 30 to 40 people; retail and other non-manufacturing sectors - from 20 to 30 people.
As a rule, medium-sized enterprises are created in industries for the primary processing of raw materials in small volumes in labor-intensive industries.
The Ministry of Employment and Labor Relations, the Ministry of Economy and Industry together with the Ministry of Finance will be tasked with developing a Regulation on the procedure for calculating the average annual number of business entities.
All privileges provided to small businesses will also apply to medium-sized businesses. Medium-sized businesses with an annual turnover of $105,350 to $316,050 will be exempt from VAT.
Starting April 1, 2020, medium-sized businesses will provide quarterly statistical reports.
Changes and additions will be made to the relevant regulatory documents and classification in connection with the introduction of the concept of "medium-sized enterprises (business)".
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