On improvement of tax deferral mechanisms for domestic and foreign investors (PP-5274-son)

02.11.2021

RESOLUTION

OF THE PRESIDENT OF THE REPUBLIC OF UZBEKISTAN

In order to further improve the investment climate in the country, create favorable conditions for domestic and foreign investors, as well as to ensure the implementation of tasks identified in the Open Dialogue between the President of the Republic of Uzbekistan and entrepreneurs, held on August 20, 2021 on direct examination of the problems and proposals of entrepreneurs and identification of key areas for further development of entrepreneurship:

1. Grant from January 1, 2022 to business entities (except for enterprises with a state share of over 50 percent, subsoil users, and producers of excisable products) the right to defer payment of taxes accrued on property tax and land tax upon the acquisition of property rights for land and (or) buildings and structures with a total area exceeding 1,000 square meters, for a period of six months.

In this case, the deferred amount of taxes shall be determined in the amount of taxes calculated on the basis of the value of land, buildings, and structures that have passed state registration.

2. Establish a procedure according to which, within the framework of the legal norms stipulated in paragraph 1 of this Resolution:

the right to defer the payment of taxes shall be carried out within three months from the date of state registration of property rights for land, buildings, and structures, with notification of the state tax bodies and without demanding security for its payment (pledge);

the validity period of the tax deferral shall be the date of the notice sent in accordance with the established procedure to the state tax bodies, while the deferred amount of tax shall be paid during the year in equal installments along with accrued interest from the date of expiry of this notice. Hereby, the interest for the use of the opportunity to reschedule due dates for tax payment shall be charged at 50 percent of the key rate of the Central Bank from the date of tax deferral;

in the case of sale or lease of land and (or) buildings and structures during the period of tax payments deferral, the amount of taxes calculated during the period of deferral of property tax and land tax shall be charged in full;

business entities belonging to the group of taxpayers with an increased risk of violation of tax laws shall not be granted tax deferral.

3. Establish that upon expiration of the tax deferral period stipulated by this Resolution, business entities shall retain the right to apply to local state authorities for tax deferral or installment payment in accordance with the established procedure.

4. The State Tax Committee and the Ministry of Finance shall submit within two months jointly with the involved ministries and agencies to the Cabinet of Ministers of the Republic of Uzbekistan proposals on changes and amendments to the legislation acts, arising from this Resolution.

5. The Chairman of the State Tax Committee Sh.D. Kudbiev shall be personally accountable for efficient execution of this Resolution.

Control over the execution of this Resolution shall be assigned to the Deputy Prime Minister of the Republic of Uzbekistan D.A. Kuchkarov.

President of the Republic of Uzbekistan SH. MIRZIYOYEV

Tashkent city,

2 november 2021 y.,

No. PP-5274