Tax incentives

Participants of free economic zones are provided with the specifics of the application of benefits for individual taxes, as well as customs payments in accordance with the procedure established by the Tax Code of the Republic of Uzbekistan and the Law of the Republic of Uzbekistan "On Special Economic Zones".

According to Article 473 of the Tax Code of the Republic of Uzbekistan (new edition), participants of special economic zones are granted tax benefits in the form of exemption from payment:

- property tax (according to Article 415 of the Tax Code, the tax rate on the property of legal entities is 1.5% of the average annual residual value of the property);

- land tax (according to Article 429 of the Tax Code, the base tax rate for non-agricultural land in the Tashkent region is 30 million soums/ha);

- tax for the use of water resources, depending on the volume of investments made for a period determined by the decision of the President of the Republic of Uzbekistan (according to Article 445 of the Tax Code, the tax rate for the underground water sources industry enterprise is 620 soums/cubic meters.

The benefits provided for in Articles 473 of the Tax Code are provided for a period of 3 to 10 years, depending on the volume of investments made, including in the equivalent:

from 300 thousand US dollars to 3 million US dollars – for a period of 3 years;

from 3 million US dollars to 5 million US dollars – for a period of 5 years;

from 5 million US dollars to 10 million US dollars – for a period of 7 years;

from 10 million US dollars and above – for a period of 10 years.

Basis: Decree of the President of the Republic of Uzbekistan dated 26.10.2016 No. UP-4853.

Also, participants of special economic zones are exempt from paying income tax depending on the amount of investments they have made:

in the amount of 3 million US dollars to 5 million US dollars – for 3 years;

in the amount of 5 million US dollars to 15 million US dollars – for 5 years;

in the amount of 15 million US dollars and above — for 10 years.

For information: according to Article 337 of the Tax Code, the income tax rate is 15% of the amount of net profit received during the reporting period (the difference between the total income and expenses of the enterprise for the reporting period).