Exporters of Uzbekistan can get tax breaks

Tashkent, Uzbekistan (UzDaily.com) -- Uzbekistan plans to provide tax breaks by to domestic exporter.

A draft resolution of the President of Uzbekistan “On measures to further stimulate the export potential of domestic producers” has been published for discussion.

The document was developed in order to expand the country’s export potential, provide state support to exporting enterprises, and stimulate an increase in the production of competitive export products.

The document proposes to provide tax breaks to legal entities with a share of exports in the total revenue from the sale of goods (works, services) more than 15 percent from 1 January 2019, including through a commissioner (attorney).

In particular, it is proposed to reduce the taxable base for income tax of legal entities in terms of profit attributable to the volume of sales of goods (works, services) for export, and the single tax payment, in terms of sales of goods (works, services) for export.

Tax incentives do not apply to the export of commodities, as well as international transportation and transportation services through pipelines and gas pipelines.

Funds released as a result of the application of the above benefits are subject to collection to the State Budget of the Republic of Uzbekistan with accrual of interest in accordance with the law in the following cases:

• lack of documentary evidence of the export of goods (works, services) in accordance with the law;
• not ensuring the receipt of foreign exchange earnings within 180 days from the date of release of goods in the export mode.

The Ministry of Finance of Uzbekistan was entrusted to develop the draft Tax Code in a new edition, to provide tax incentives for exporters.