Uzbek Justice Ministry registered a regulation “On order on use of tax preferences on purchase of shares of commercial banks and receive of dividends on them” on 20 March.

The regulation determines order of registration and reflection of preferences in accounting reports, which are presented by legal entities.

President of Uzbekistan Islam Karimov signed a decree on measures on stimulation of increase of capitalization of commercial banks on 19 December 2006. The regulation is logic continuation of this decree.

The document said it is adopted to ensure sustainable development of banking system, increase capitalization level of commercial banks, active participation of the banks in investment processes and structural modernization of economy.

The decree set that incomes of legal entities, received as dividends from shares of commercial banks, exempted from taxation from 1 January 2007 to 1 January 2010.

Taxation base on income tax and single payment tax will be decreased to the sum, directed to purchase of shares of commercial banks.

The document added that preferences will be used only to shares of commercial banks, purchased after 1 January 2007 and dividends on shares, paid till 31 December 2009.

The decree recommended commercial banks to stir up their activity on attraction of free funds of population, businesses, institutional investors, including foreigners, to charter capital of commercial banks.