Why is this important
The amendments to tax legislation are aimed at supporting production sectors and expanding the production of high-value-added products. Reducing the tax burden can stimulate the development of the garment, footwear, leather, and perfume industries, as well as strengthen the creative sector. Such measures create conditions for the emergence of new jobs and increase the competitiveness of Uzbek businesses.
What happened
- The authorities adopted a law that amends and supplements a number of legislative acts.
- The procedure for terminating the activities of individual entrepreneurs has been clarified, and new conditions for accepting revised tax returns have been established.
- Tax benefits have been introduced for enterprises in certain manufacturing sectors and the creative sector.
- Income tax on certain bonds is exempt.
Numbers and facts
- The termination of the activity of a natural person is determined by: the decision of the entrepreneur himself, the decision of the court, the decision of the registering body.
- Refined declarations that reduce the amount of income and social taxes are accepted after verification by tax authorities.
- At the same time, the income tax rate for manufacturing enterprises will be 2%, and the social tax rate will be 1% – this will affect the sewing, knitting, footwear, leather, and perfume industries.
- Until January 1, 2030, the income of legal entities on bonds of mortgage refinancing organizations is exempt from income tax.
- For residents of the Creative Park from May 1, 2025 to January 1, 2031, income and social tax will be withheld with a 50% reduction in the rate.
- Also, residents will always be considered turnover tax payers, regardless of the amount of income.
Context
- Reducing the tax burden should accelerate the expansion of enterprises operating in processing and creative industries and improve their financial stability.
- Benefits for investing in mortgage bonds can support the development of the financial market.
- As a result, employment growth, increased supply of high-quality local products, and strengthening of Uzbekistan’s export potential are expected.
