BAKU, Azerbaijan, August 22. From January 1, 2023, the value added tax (VAT) in Uzbekistan will be decreased from 15 percent to 12 percent.
This was stated by the President of Uzbekistan Shavkat Mirziyoyev at a meeting with entrepreneurs on August 22,Trend reports via Uzbek media outlets.
During the meeting, it was noted that one of the most problematic issues for small and medium-sized businesses in Uzbekistan is related to the calculation and refund of VAT.
The head of state proposed to introduce a new classification of enterprises based on their turnover. From 2023, instead of the turnover tax, a single tax rate of 4 percent will be introduced for micro-businesses. Enterprises that have switched from small to medium-sized businesses will pay only 50 percent income tax for two years.
As per president’s suggestion, Uzbek enterprises will be classified according to their annual turnover and divided into the following categories:
- entities with an annual turnover of up to 1 billion soums ($91,408) - microbusiness;
- entities with an annual turnover of up to 10 billion soums ($914,077) - small businesses;
- entities with an annual turnover of up to 100 billion soums ($9.1 million) - medium-sized businesses.