19:32 / 15.09.2021
2478
Tax Code changed

The law “On amendments and additions to the Tax Code of the Republic of Uzbekistan” was adopted.

As Norma reports, the following changes and additions have been introduced to the Tax Code:

Firstly, Article 483 of the Tax Code is supplemented with parts 4-6, according to which:

a) for the period until January 1, 2022, no measures will be taken to enforce the collection of tax arrears as of December 31, 2020, as well as the accrual of penalties:

  • on property tax of legal entities and land tax on legal entities for business entities operating in the field of tourism, transport and public catering;
  • on property tax of legal entities and land tax on legal entities, assessed and not paid by them in 2020 due to temporary difficulties;
  •  on taxes, penalties and accrued fines for violation of tax legislation for microfirms and small enterprises that are in arrears as of May 15, 2020; 

b) for the period until December 31, 2021, tour operators, travel agents and entities providing hotel services (accommodation services) in the tourism sector:

  • pay income tax at tax rates reduced by 50% of the established tax rate;
  • pay social tax at a tax rate of 1%;
  • are exempt from paying property tax of legal entities and land tax from legal entities; 

c) they are exempt from paying property tax, land tax, turnover tax, a fixed amount of personal income tax for individual entrepreneurs:

  • for a period until January 1, 2024, newly created business entities carrying out activities determined by the President’s decision as “growth points” for each region and city of the Republic of Karakalpakstan;
  • for a period until January 1, 2024, newly created business entities in the field of industry, located in the Takhtakupyr, Bozatausky and Shumanai regions of the Republic of Karakalpakstan. They pay income tax and tax for the use of water resources at tax rates reduced by 50% of the established tax rate;
  • for a period until January 1, 2026, newly created business entities specializing in the provision of services and located on the territory of 45 mahallas and auls with difficult conditions in the Republic of Karakalpakstan, according to the list determined by Jokarga Kenes. They are also exempt from income tax.

Secondly, persons purchasing and (or) carrying out temporary import of motor vehicles powered only by an electric engine are exempted from payment of the fee for the purchase and (or) temporary import of motor vehicles into the territory of the republic.

Thirdly, now a legal entity has the right to apply to the tax authority with an application for tax monitoring if its income for the previous year, according to the annual financial statements, amounted to at least 5 billion soums (previously, at least 10 billion soums).

Fourth, the changes affected the duties of bodies, institutions and organizations to provide information to the tax authorities.

So, information in electronic form in real time to the tax authorities will be submitted by the authorities:

  • carrying out state registration of rights to real estate;
  • accounting for water resources at the place of water use or water consumption;
  • authorized to perform notarial acts.

Fifth, it was determined that for the lands occupied by mines and quarries, the tax is paid using a coefficient of 0.1, and those located in the rain-fed pasture zone – a coefficient of 0.05 to the tax rates established by the council of people’s deputies of districts and cities (article 429-14).

For lands located in a rainfed-pasture zone, the tax is paid using a coefficient of 0.3 to the tax rates established by the council of people’s deputies of districts and cities. The exception is the cases provided for in Article 429-14 of the Tax Code.

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