Tax Administration - expected amenities and opportunities

Tashkent, Uzbekistan (UzDaily.com) - A number of decrees and resolutions of the President were adopted, aimed at ensuring sustainable development of our national economy, strengthening financial discipline, protecting consumer rights and supporting entrepreneurship.

The main goal of the Law "On Amendments and Additions to Certain Legislative Acts of the Republic of Uzbekistan in Connection with Improving Tax Administration" approved by the Senate is to determine the legal basis for the measures provided for by the adopted decrees and resolutions, as well as to ensure the implementation of approved state programs.

The Law establishes that for the period until 1 January 2024, newly created business entities (with the exception of clusters) in the Bandikhan, Kyzyryk, Muzrabad, Sherabad districts, mountainous regions and territories with saline land areas of Surkhandarya region, carrying out their activities with the passage of state registration in these areas (territories) are exempt from paying land tax from legal entities, property tax of legal entities, turnover tax, a fixed amount of personal income tax for individual entrepreneurs.

In addition, for the period from 10 September 2021 to 1 January 2024, newly created business entities (with the exception of clusters) in mountainous areas and territories with saline land areas of Surkhandarya region, carrying out their activities with the passage of state registration in these territories, pay tax on profit at tax rates reduced by 50 percent of the established tax rate.

According to preliminary estimates, as a result of the introduction of benefits, more than 1400 business entities will be re-organized in these territories and 13 billion 400 million soums will remain in their jurisdiction.

In addition, temporary tax incentives are being introduced to support business entities engaged in fishing, livestock and poultry farming in Syrdarya, Akaltyn and Mirzaabad districts, affected by a man-made accident that occurred at the Sardoba reservoir in 2020.

Fishery, livestock and poultry farms affected by an emergency in the Sardoba, Akaltyn and Mirzaabad districts of Syrdarya region, the list of which is approved by the Kengash of People’s deputies of Syrdarya region.

As a result, according to calculations, 69 fish-breeding, 41 livestock and 5 poultry farms will have funds in the amount of more than 1 billion soums.

The law also stipulates the incorporation of rules relating to consumer protection.

In particular, liability is established for artificially raising or lowering prices for goods and services provided, depending on the form of payment for them in cash or with plastic cards, as well as violation of the rules of digital marking by means of identification by manufacturers and importers of goods (products) for which the legislation mandatory digital marking has been established.

In order to ensure transparency, the Tax Code introduces a corresponding rule stating that the impartiality of actions to implement tax control should be ensured by video filming, and in the absence of such an opportunity, with the participation of attesting witnesses.

At the same time, the Law envisages transferring to the Cabinet of Ministers the powers of the Ministry of Finance and the State Tax Committee of the Republic of Uzbekistan to adopt certain documents.

It should be noted that the procedure for applying fines for cases of late submission of collection orders to enterprises that have arrears in payments to the budget is canceled. 

Senators approved this Law.