TAX BENEFITS

Participants in special economic zones enjoy tax benefits in the manner prescribed by the Tax Code of the Republic of Uzbekistan.

Tax code

Article 473. Conditions for taxation of participants in special economic zones

Participants in special economic zones are provided with tax benefits in the form of exemption from property tax, land tax and 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.

The tax benefits specified in part one of this article apply exclusively to the types of activities of a participant in the special economic zone provided for in the Agreement on investment in the territory of the special economic zone, concluded between the investor (investors) and the Directorate of the special economic zone.

Participants in special economic zones, in accordance with this Code, enjoy benefits on value added tax and other taxes.

Article 474. Procedure for applying tax benefits by participants in special economic zones

The validity period of tax benefits provided for by the first part of Article 473 of this Code is calculated from the date of receipt of the certificate of a participant in the special economic zone.

When deprived of the status of a participant in a special economic zone, a business entity is not entitled to enjoy tax benefits and other preferences provided to participants in the special economic zone from the 1st day of the month in which it was deprived of the status of a participant in the special economic zone.

If a participant in a special economic zone has increased the volume of investments to an amount that provides for a longer period of validity of tax benefits, he has the right to extend the period of validity of tax benefits in accordance with the actual volume of investments. Moreover, if an increase in the volume of investments is carried out after the expiration of the previous period of validity of the benefits, tax benefits are applied from the 1st day of the month following the month in which the right to a longer period of validity of the benefits arose.

BENEFITS ON CUSTOMS PAYMENTS

Participants in special economic zones are exempt from paying:

customs payments (except for value added tax and customs clearance fees) for construction materials not produced in the republic and imported in the prescribed manner for the implementation of an investment project in accordance with the investment agreement during the construction period;

customs payments (except for customs clearance fees) when importing technological equipment, analogues of which are not produced in the Republic of Uzbekistan, according to the approved list.

Customs duties (except for customs clearance fees) are not paid when raw materials, materials and components used for the production and sale of products for export are imported into the territory of the Republic of Uzbekistan by participants in special economic zones.

Participants in special economic zones have the right to receive a deferment in the payment of value added tax when importing goods for a period of up to 120 days.

The amount of value added tax resulting from the excess of the amount of value added tax credited over the amount of accrued tax is reimbursed to the participant in the special economic zone according to a simplified procedure within seven days.

The amount of paid value added tax is reimbursed to participants of special economic zones from the republican budget of the Republic of Uzbekistan in the manner determined by the Cabinet of Ministers of the Republic of Uzbekistan.

 

DECREE OF THE PRESIDENT OF THE REPUBLIC OF UZBEKISTAN ON ADDITIONAL MEASURES TO ACTIVATE AND EXPAND THE ACTIVITIES OF FREE ECONOMIC ZONES No. UP-4853 DATED 10/26/2016.

 

Clause 3. Participants in special economic zones are provided with the specifics of applying benefits on certain taxes, as well as customs payments in the manner established by the Tax Code of the Republic of Uzbekistan and the Law of the Republic of Uzbekistan “On Special Economic Zones”.

Clause 4. Determine that the benefits provided for in paragraph 3 of this Decree are provided for a period of 3 to 10 years, depending on the volume of investments made, including the equivalent of:

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.