The benefits are valid until 2028. The corresponding law was signed by the President.
The President signed the law “On amendments to certain legislations of the Republic of Uzbekistan aimed at improving the investment and business environment in the Republic of Karakalpakstan”. The document was published in “Khalk suzi” newspaper.
According to the document, from January 1, 2023 to January 1, 2028, for business entities located in all districts of the Republic of Karakalpakstan and operating in this area:
- the tax rates of profit tax, turnover tax, property tax of legal entities and land tax from legal entities are reduced by 50%;
- social tax – at the tax rate of 1%, individual entrepreneurs – in the amount of 1 BCA per year.
Kindly note that this discount does not apply to:
- large taxpayers;
- permanent establishments;
- budgetary organizations and state enterprises;
- a legal entity with a state share of 50% or more in the charter fund (charter capital);
- legal entities in which 50 or more percent of the charter fund (authorized capital) belongs to a legal entity with a 50% state share.
Foreign experts (teachers) involved in the educational process of non-governmental educational organizations in the territory of Karakalpakstan were exempted from paying the consular fee and state duty charged for temporary and permanent residence permit until October 1, 2027.
These measures are expected to increase the investment attractiveness of the region, develop entrepreneurship, create new jobs, and improve the quality of education in non-governmental educational organizations.
