20.11.2020

M e a s u r e s   t o   r e d u c e   t h e   s h a d o w   e c o n o m y   w i l l   b e   t a k e n   i n   U z b e k i s t a n  

The Presidential Decree No.УП-6098 “On organizational measures to reduce the shadow economy and improve the efficiency of tax authorities” dated October 30, 2020 (the “Decree No.УП-6098”) provides for measures to reduce the share of the shadow economy in the country. In particular, the following measures has been taken by the Decree No.УП-6098:

  • in order to limit the transition to the generally established tax regime, income received in the form of non-cash funds by small businesses in the field of catering are subject to deduction from the total income until 2022;
  • the turnover tax for the real estate type of activity is reduced from 25% to 13%;
  • construction organizations are allowed to hire workers on non-fixed term with payment in cash (if the amount of cash does not exceed 10% of the total wage amount). Also, in this case, the construction organizations will retain the obligation to pay personal income tax and social tax for workers and submit monthly reports;
  • businesses are allowed to purchase goods and services using corporate bank cards without concluding a contract. However, the purchased goods or services must be properly reflected on the invoices and receipts of the online cash registers.

In addition to the above measures, the Decree No.УП-6098 has also introduced additional obligations for the State Tax Service and the Customs Committee directed to prevent corruption in the country.

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