Tax accounting in Uzbekistan to become more independent

Finance Materials 5 December 2019 14:21 (UTC +04:00)
Tax accounting in Uzbekistan to become more independent

BAKU, Azerbaijan, Dec. 5

By Fakhri Vakilov-Trend:

From now on, the calculation of income tax in Uzbekistan will not be tied to the statement of financial results, Trend reports citing Uzbek media.

The new version of the tax code was discussed in the second reading in the lower house of Uzbekistan’s Parliament. The main innovations of the document were announced.

Tax accounting is becoming more independent.

Uzbekistan also refuse from double taxation on dividend tax. The draft stipulates that it will be withheld only from dividends that have not previously been taxed by this tax.

The concept of total income is also changing. So, if at the moment, it consists of income from the sale of goods, work, services and other income, the new code proposes to get away from this division. The total income will now be considered all income in any form and from any activity with a detailed listing of them.

A detailed list of expenses is also excluded from the new edition. Experts invited to external discussions focused on the fact that costs should be justified and economically justified. It is proposed to consider as such expenses that are incurred in order to generate income, as well as those necessary for maintaining or developing entrepreneurial activity.

The list of non-deductible expenses remains closed. This, according to the participants in the reading, makes it possible to more clearly and provably determine the tax base.

The collection of income tax from individual entrepreneurs whose income exceeds $105,000 will be simplified. The tax base is estimated at 25 percent of total income. Moreover, a foreign enterprise, having submitted an appropriate application to the tax authorities, can relieve itself of the obligation to keep records of expenses. However, this does not apply to traders.

The new bill also solves the problem of taxpayers regarding advance payments of income tax. Now, according to the law, it is required to forecast profit for several months in advance, to pass certificates on advance payments. From now on, advance payments are provided only for those whose income for the previous tax period exceeded $500,000.

Moreover, this type of payment is calculated by tax authorities, not taxpayers. This, according to deputies, should improve the financial condition of small businesses and avoid errors in the payment of current payments for medium and large enterprises.


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