Uzbekistan, Republic of
The following notable changes were introduced to Uzbek legislation in 2019 in the course of tax reform:
- Corporate income tax (CIT) is decreased to 12% (previously, 14%).
- General rate of unified tax payment (UTP) is decreased from 5% to 4%.
- UTP rate for intermediary services (agency, commissioning, etc.) is decreased from 33% to 25%.
- Simplified value-added tax (VAT) regime is available until 1 January 2021 for legal entities, including enterprises paying taxes under simplified tax regime with annual turnover not exceeding 3 billion Uzbekistani som (UZS).
- Input VAT on capital items shall be eligible for offset (previously, capitalised).
- Land tax rates for legal entities and individuals and water-use tax rates for individuals are raised by approximately 20%.
- Contribution to the Individual Accumulative Pension Accounts is decreased from 2% to 0.1%.
- Excess profits tax for production of cement, clinker, and polyethylene granules is abolished.
- Minimum amounts of UTP, of not less than 3 times land tax amount, and unified social payment (USP), of 1 minimum monthly wage (MMW), are abolished.
- Excise tax has been introduced for mobile communication services at the rate of 15% (along with reduction of monthly charge payable by mobile operators for each customer from UZS 4,000 to UZS 2,000).
- Excise tax rates on production of oil products (e.g. gasoline, kerosine, diesel) have decreased by 10 times, and the excise tax rate for production of natural gas decreased from 25% to 15%, The excise tax rate for production of vehicles by General Motors Uzbekistan has decreased from 5% to 3%.
- Excise tax rates on production of polyethylene granules are adjusted at the rate of 25% (along with cancellation of excess profits tax charged for the same, as noted above).
- Tax and customs exemptions provided to participants of small industrial zones were abolished (except for already registered participants till 1 January 2020).
- New types of tax audits replaced scheduled and non-scheduled audits. Also, the concept of 'thematic express analysis' is introduced.