Uzbekistan to lower single social payment for state enterprises in 2020

Finance Materials 27 September 2019 16:13 (UTC +04:00)

Baku, Azerbaijan, Sept. 27

By Fakhri Vakilov - Trend:

Uzbekistan plans to reduce the rate of a single social payment in 2020 for state-owned enterprises from 25 to 12 percent according to presidential decree dated September 26, 2019 “On measures to further improve the tax policy of Uzbekistan”, Trend reports citing Uzbek media.

This provision also applies to legal entities with a state share in the authorized capital of 50 percent or more and legal entities in whose authorized capital of 50 percent or more belongs to a legal entity with a state share of 50 percent or more, and their structural units, reads the message.

It is noted that the document was adopted to reduce imbalances in taxation of business entities.

Single social payment is the main filler of the Pension Fund. According to the official forecast, the income of the off-budget Pension Fund in 2019 will increase to 23.6 trillion soums. Moreover, 17.5 trillion soums will be deducted from the single social payment. In 2019, the single social payment rate for budgetary organizations and state enterprises is 25 percent, for microfirms and small enterprises, as well as farms - 12 percent.

The amount of single social payment will be distributed between state trust funds and the Council of the Federation of Trade Unions. Furthermore, the lion's share goes to the off-budget Pension Fund - 99.2 percent of the 25 percent receipt of funds from budgetary organizations and state enterprises, and 98.4 percent from other payers.

As previously reported with reference to official sources, in 2019 the Pension Fund of Uzbekistan will be insured by the state budget. The volume of proposed subsidies to this fund will amount to 4.7 trillion soums.

($1-9434.90 soums on Sept. 27)


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