Tashkent, Uzbekistan (UzDaily.com) - The Decree of the President of the Republic of Uzbekistan "On measures to further stimulate exploration and improve the taxation of subsoil users" was adopted on 6 October 2021.

According to the document, from 1 January 2022, a special procedure is established for bidding the right to use a subsoil plot for geological exploration or production in a previously explored subsoil plot of hydrocarbons, precious, non-ferrous, rare and radioactive metals and other types of ore minerals that have significant commercial potential.

Wherein:

the amount of the sale is considered as the amount of the bonus for the right to use the subsoil and is transferred to the republican budget;

organizers or participants in competitive bidding have the right to propose increased tax rates for certain types of taxes in the extraction (extraction) of minerals in the manner prescribed by law.

Canceled:

a commercial discovery bonus levied on a mining right,

a subscription bonus charged for the right to carry out exploration and prospecting activities.

Land plots allotted for exploration and (or) exploration work are not subject to land taxation from legal entities.

An annual license fee is introduced for the use of subsoil for geological exploration, calculated on the basis of the allotted area and types of minerals.

The funds received from this payment are sent:

70% - to the republican budget of the Republic of Uzbekistan;

15% - to local budgets of regions;

15% - to local budgets of districts (cities).

Legal entities carrying out geological exploration are reimbursed the amount of value added tax no later than 30 days from the date of submission of the application. 

When selling natural gas for export, the excise tax rate is set at zero percent.