Financial Services, Investments, Legislation, Markets and Companies

According to the document, the government expanded a list of industries, which can receive tax preferences for attraction of FDI from eight to twenty.

The list now includes such industries as production of packaging materials, construction of stations based on alternative energy sources, petrochemical industry, etc.

The resolution said that now tax preferences are also provided to enterprises, located in all cities and rural areas of Uzbekistan, except Tashkent city and Tashkent region. Earlier, the preferences provided to enterprises in regions with excessive labour forces.

At the same time, the preferences are provided to enterprises with the share of foreign capital at least 33%. Earlier, the figure was 50%. The government also abolished another condition and tax preferences are provide to enterprises, which attracted investments after state registration.

Enterprises, which received tax preferences, also allowed to reinvest 50% of income, received due to tax holidays. Earlier, they should reinvest all sum.

On 1 July 2005, President of Uzbekistan provided tax holidays to enterprises with foreign capital. The enterprises were exempted from payment of income tax, property tax, accommodation and infrastructure development tax, as well as payments to Republican Road Fund.

Tax privileges are provided for three years if the investment volume makes up between US$300,000 to US$3 million, for five years – for investments between US$3 million and US$10 million, as well as for seven years – for investments for over US$10 million.

In line with the legislation of Uzbekistan, the enterprises with charter capital of US$150,000 and share of foreign investors at least 30% are considered as companies with foreign capital.