Tashkent, Uzbekistan (UzDaily.com) – Uzbekistan introduced changes and additions to the Tax Code. One of the main objectives of the innovations is to further improve the business environment and support young people. 

In order to stimulate the growth of investments in fixed assets, the amount of some expenses deducted from the income tax base is increased, including:

The rate of depreciation is 2 times on average.

In particular,

for buildings - increased from 3% to 5%,

structures - from 5% to 10%,

for pipelines, power lines and telecommunications - from 8% to 15%,

for machinery and equipment - from 15% to 20%,

for computers and peripheral equipment - from 20% to 40%;

the size of a one-time investment deduction - 2 times.

In particular:

for new technological equipment - from 10% to 20%,

for new construction with the aim of expanding production - from 5% to 10%.

The deductible amount of losses incurred as a result of operations and carried forward to future periods increases from 60% to 100% of the tax base of the current tax period.

In order to create equal conditions for domestic and foreign investors for non-residents operating through a permanent establishment, the procedure for paying tax on dividends from net profit (10%) is established.

Entrepreneurs upon obtaining property rights to land plots and (or) a building (structure) with a total area of over 1,000 square meters (10 acres) the right to defer the payment of property tax and land tax for 6 months is granted. In this case, the interest for the use of the right to defer the payment of taxes is calculated from the date of the deferral in the amount of 50% of the basic rate of the Central Bank - 7%.

Financial sanctions for failure to submit tax reports within the specified time frame are canceled.

Funds allocated for are not taxed:

coverage of educational loans (with interest) allocated by commercial banks for training in higher and professional educational institutions;

covering the amount of mortgage loans and interest accrued on them for young families (up to 15 million soums);

membership fees to international organizations;

payments to non-governmental educational organizations for retraining and advanced training. 

taxpayer income received from renting residential buildings to students.

Residential premises allocated by the state for orphans and children left without parental care until they reach the age of 23 are exempt from property tax.