“Property tax rate for legal entities will be further reduced” – Deputy Finance Minister

The government of Uzbekistan plans to reduce property tax rate for legal entities. This was stated by Deputy Minister of Finance Dilshod Sultanov, Kun.uz correspondent reports.

“Uzbekistan has the lowest income tax rate, we brought it up to 12% and made a more transparent mechanism for its calculation. We also reduced the property tax, which was 5%. It was a lot. Now it has been reduced to 2% (from 2019). And this is not the limit. We will work further to reduce the property tax rate,” Sultanov said at a meeting of the Uzbek-British Trade and Industry Council in Tashkent.

In addition to the rate cut this year, microfirms and small enterprises regardless of the number of employees and sales of products, became taxpayers on the property of legal entities. Previously, they did not pay this tax.

In order to reduce the cost of goods, works and services, depreciation rates were also changed for tax purposes based on the period of use of the property for certain categories of fixed assets. Thus, the depreciation rates for buildings and structures have been reduced from 5 to 3%, for railway rolling stock, sea and river vessels, fishing industry, and air transport from 8 to 4%. It is expected that lower rates will lead to lower costs and higher profits.