Amendments And Additions To The Tax Code Of The Republic Of Uzbekistan

In the light of the adoption of the Law "On introduction of amendments and additions to the Tax Code of the Republic of Uzbekistan" No. ZRU-599 dated 30 December, 2019, a new edition of the Tax Code was adopted. The significant amendments are the following:

1. The types of taxes have been reduced to 9

2. The single social payment, single tax payment and fixed tax were replaced by

   social tax, turnover tax and personal income tax in a fixed amount respectively.

3. The following are the major changes in tax rates:

   VAT is set at a single rate of 15%; The profit tax for legal entities is set at a rate of 15%; The property tax is set at a rate of 2% (unchanged); All granted social tax benefits are abolished, while social tax for government agencies is reduced to 12%. 4. The personal income tax rates have remained unchanged since 2019:

   For individuals - residents of the Republic of Uzbekistan:

   The general personal income tax - at a rate of 12%; Income in the form of dividends and interest - at a rate of 5%; For individuals - non-residents of the Republic of Uzbekistan:

   Income in the form of dividends and interest - at a rate of 10%; Income from the provision of transport services in international transportation (income from freight) - at a rate of 6%; Income received under labor contracts and civil law contracts, other income - at a rate of 20%. 5. The right of tax authorities to write off a taxpayer's debt from its debtors is abolished.

6. Benefits, as well as reduced rates on taxes and other obligatory payments provided by the Tax Code of the Republic of Uzbekistan, are valid until 1 April 202 whereas if they are granted by decisions of the President of the Republic of Uzbekistan and the Cabinet of Ministers of the Republic of Uzbekistan, they remain valid until their expiration.

7. Please note that from 1 January 2020 tax benefits are issued only by the Tax Code. The exceptions are reductions in taxes such as VAT, excise tax and subsoil use tax, which can be provided by the President's Decision in the amount of not more than 50% andfor not more than 3 years.

8. The new edition of the Tax Code provides for the refund of excessively paid or collected taxes within 15 days from the date of payment, moreover, the refund provides for interest on each delayed day based on the Central Bank refinancing rate.

9. The regulations on taxation of profits on Transfer Pricing, Controlled Foreign Companies, Consolidated Group of Taxpayers, come into force from 1...