Changes in the field of taxation in Uzbekistan

Changes in the field of taxation in Uzbekistan

Tax privileges specified in the Decree of the President of the Republic of Uzbekistan “On additional measures to support the population, economic sectors and business entities during the coronavirus pandemic” No.UP-5978 dated April 3, 2020 were included in the Tax Code of the Republic of Uzbekistan.

In particular, from January 1, 2021, the following main additional provisions will be included to the Tax Code:

On value added tax (VAT), corporate income tax and revenue tax:

  • taxpayers with a revenue not exceeding 1 billion, who are VAT payers, will be entitled to pay VAT on a quarterly basis;
  • enterprises in the field of retail sale of alcoholic beverages, including beer, regardless of the size of their revenue, will be payers of VAT and income tax;
  • for realtors the revenue tax is set at 13%;
  • property (created) at the expense of funds released as a result of provided tax and customs incentives are not recognized as depreciable assets and are not subject to depreciation;
  • the cost of depreciable assets, taking into account the previously carried out revaluation, held by the taxpayer according to accounting data as of January 1, 2021, will be the initial cost for tax purposes.

On land tax:

  • increased tax rates and the abolition of tax incentives on land tax for inefficiently used artificial reservoirs for breeding (growing) fish;
  • exemption from land tax for legal entities that have introduced water-saving irrigation technologies, as well as those allocated for the storage of all types of waste and their disposal.

On tax for subsoil use:

  • establishment of a tax for use of subsoil in the amount of 5% for the certain types of minerals, such as building sand, sand and gravel mixture, sandstones, building crushed stone (carbonate rocks), building crushed stone (granites, porphyrites and shale rocks).

On excise tax:

  • for mobile operators, the excise tax rate is established at 15%;
  • exclusion of natural wine (with an exception of bottled) from the list of excisable goods if they are sold in tasting zones (places).
Tax Law