Uzbekistan Enacts Law on Tashkent International Financial Centre

Tashkent, Uzbekistan (UzDaily.uz) — President of Uzbekistan Shavkat Mirziyoyev has signed the Constitutional Law "On the Tashkent International Financial Centre."

The law establishes the Tashkent International Financial Centre (TIFC), which will operate within a territory with a special legal status, its own regulatory framework, an independent commercial court and a legal environment based on the principles of English law.

Saida Mirziyoyeva, Head of the Presidential Administration, announced the signing of the law, describing the establishment of the centre as one of the key outcomes of Uzbekistan's economic reforms in recent years. She said the new legal and regulatory framework is designed to attract international investors, banks, investment funds and financial companies.

The constitutional law defines the legal status of the TIFC, its operating principles, governance structure and special legal regime. One of its key provisions is the application of the principles, legislation and judicial precedents of England and Wales, provided they do not conflict with the Constitution of the Republic of Uzbekistan.

The law also establishes the status of the Tashkent Financial Services Authority and the Tashkent International Commercial Court. Special tax and customs incentives are provided for participants of the centre.

Work on establishing the TIFC has been underway since the end of March this year, when the president signed a decree on its creation. The centre will be located within the Tashkent City complex.

The TIFC's main areas of activity include attracting investment, developing the capital market, expanding financial services and building an ecosystem of innovation and professional services. Plans also include the development of banking, insurance, Islamic finance, fintech, e-commerce, and digital and crypto-asset markets.

The Tashkent Financial Services Authority will be responsible for licensing and regulating participants in the centre, while the Tashkent International Commercial Court will have exclusive jurisdiction over disputes falling within its remit.

Participants in the centre will be allowed to employ foreign specialists without obtaining work permits and to make settlements and fulfil financial obligations in foreign currencies or crypto-assets in accordance with contractual agreements. Foreign employees and their family members will be eligible for special visas valid for up to five years. The law also guarantees the free repatriation of capital and income.

A package of tax and customs incentives for TIFC participants will remain in effect until 1 January 2076. Income earned by the centre's governing bodies and participants from providing services within the TIFC will be exempt from corporate income tax and social tax, except for cryptocurrency exchange activities. Land tax and property tax will not apply to assets used by the centre's governing bodies, while customs duties will be waived on goods imported for use within the TIFC.

The law also exempts the salaries of foreign citizens and stateless persons employed by the centre from personal income tax. Uzbek tax residents working in the TIFC will be subject to a personal income tax rate of 7%.

Tax incentives also apply to income from the sale of stakes in companies participating in the centre, transactions involving securities listed on the official quotation list of the Tashkent Stock Exchange, as well as dividends and interest income from such securities. A range of activities, including banking, insurance, investment and financial services, payment systems and fintech, will also be exempt from value-added tax.