President approves proposal to write off the debt of individual entrepreneurs

Tashkent, Uzbekistan (UzDaily.com) -- Uzbek President Shavkat Mirziyoyev approved a proposal to write off individual entrepreneurs’ debts on fixed tax and penalties accrued on these debts.

The head of Uzbekistan signed a decree “On measures to further improve the system of protection of rights and legitimate interests of business entities”.

In accordance with the document, the President approved the proposal to write off the fixed tax debt and the interest accrued on the debt data, as well as financial sanctions and court expenses (with the exception of court costs), formed at the time of entry into force of this Decree, which are:

• for individuals who have lost the status of an individual entrepreneur before 1 April 2018, and by individual entrepreneurs (including those who have temporarily suspended their activities) who have not carried out financial and economic activities since 1 April 2018;
• for individuals who are credited with an annual amount of a fixed tax for the performance of entrepreneurial activities without state registration.

The document said that debt cancellation is carried out in case of restoration of entrepreneurial activity or state registration in accordance with the procedure established by law by individuals up to 1 January 2019.

The Council of Ministers of the Republic of Karakalpakstan, the khokimiyats of the regions and the city of Tashkent together with the territorial departments of the Chamber of Commerce and Industry of the Republic of Uzbekistan were instructed to render active assistance in restoring business and financial and economic activities, as well as state registration of individual entrepreneurs.

The President also abolished the procedure for a one-time collection of a fixed tax from individuals, carrying out activities without state registration as individual entrepreneurs, calculated on the basis of the established rate for the relevant activity at an annual rate.

The state body was entrusted within three months to conduct an inventory of the uncollectible debts for its further write-off.

Also, proposals will be developed on procedure for suspending the activities of individual entrepreneurs, who are in arrears in taxes and other mandatory payments and who do not carry out entrepreneurial activities for two months.