UZB - TAX NEWS

TAX RATES, PROCEDURES & PRIVILEGES

• A few important amendments have been adopted by the Government of Uzbekistan Republic in 2023.  Among the ones that certainly makes taxpayers happy is reduction of the rate of VAT  from 15% to 12%.  On another hand there has been some setbacks with cancellation of VAT exemptions for certain categories of services such as geological survey performed for or on behalf of the Government, some research and innovation services financed by the State Budget and so on.
• Additionally, certain procedural changes have been introduced by the Government in relation to recognition of VAT payers, offset and reimbursement of VAT as well as offset procedures for Import VAT against other taxes.
• Rather significant easement has been introduced by the Government earlier about a complete exemption from profits tax for those tax residents of Uzbekistan who are engaged in export of good or services.  Certain categories of taxpayers have also received easements on their Profits Tax liabilities which is being reduced by 50% for a specifically designated time-period.
• Other changes made to the tax legislation were focused on interpretation of the DTT such as non-resident entitlement of reduced tax rates provided by international treaties, changes of deadlines for the certain types of tax reporting, treatment of imported equipment, simplified tax rate changes and so on