On additional measures to increase the stimulating role of preferences provided to enterprises with foreign investments (74-son)

01.05.2006

Resolution of the Cabinet of Ministers of the Republic of Uzbekistan

In order to further implement the provisions of Article 9 of the Law of the Republic of Uzbekistan “On foreign investments” on the provision of equal treatment to foreign investors and foreign investments, to intensify investment activities in the republic, to strengthen the stimulating role of tax and customs benefits and preferences provided to enterprises with foreign investments, the Cabinet of Ministers decides:

1. Determine that:

taxation of enterprises with foreign investments registered in the Republic of Uzbekistan is carried out in accordance with the legislation in force at the time of taxation;

enterprises with foreign investments registered in the territory of the Republic of Uzbekistan enjoy in full all the general tax and customs benefits and preferences established by legislative acts, as well as additional benefits and preferences provided strictly in the manner and under the conditions provided by law (including investment agreements, production sharing agreements).

2. To establish that additional benefits for the payment of taxes, customs and other obligatory payments are provided to enterprises with foreign investments only for a clearly defined period and cannot be unlimited in nature.

3. To cancel from June 1, 2006 all privileges on payment of taxes, customs and other obligatory payments that were not provided for by legislative acts and are unlimited in nature that were previously granted by decisions of the Government to enterprises with foreign investments.

4. In order to ensure a detailed study of the issues of necessity and the effectiveness of providing further benefits and preferences to existing enterprises with foreign investments that are part of the industry or that implement projects recognized by law as priority, create a special working group composed according to Appendix*, instructing it:

* The Appendix is not provided.

comprehensively consider the treatment of individual enterprises with foreign investment, which earlier by the decision of the Government were granted perpetual additional benefits for the payment of taxes, fees, customs and other obligatory payments;

based on the results of consideration of applications, make appropriate substantiated proposals to the Cabinet of Ministers of the Republic of Uzbekistan on the establishment of certain enterprises with foreign investments that previously had perpetual benefits, reasonable benefits for the payment of taxes, fees, customs and other obligatory payments for a clearly defined period with subsequent conclusion of investment with foreign investors agreements in the manner established by the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan of August 2, 2005 No. 180 “On measures for the implementation of the Decree of the President of the Republic of Uzbekistan “On additional measures to stimulate the attraction of direct private foreign investments”.

5. The Ministry of Justice of the Republic of Uzbekistan together with the interested ministries and departments within one month to submit proposals to the Cabinet of Ministers on amendments and additions to legislative acts arising from this resolution.

6. The control over the implementation of this resolution shall be assigned to the Deputy Prime Minister of the Republic of Uzbekistan R.S. Azimov.

Prime Minister of the Republic of Uzbekistan SH. MIRZIYOYEV

Tashkent city,

May 1, 2006,

No 74