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Specifically, taking measures not to calculate fines against legal entities experiencing
temporary difficulties for
non-payment of property tax, land tax, and tax for the use of water
resources and, also, not to enforce collection of tax debt (until October 1
st
);
The application of penalties to business entities for overdue receivables from foreign trade
operations was suspended (until October 1
st
); and
The application of increased property tax and land tax rates for idle production facilities and
non-residential premises has been suspended. They were also assigned to suspend the
charging of interest and the enforcement of debts. This measure was applied to almost
21,000 enterprises.
Third, measures have been taken to defer payment deadlines. The loan repayment term (total 4.7
trillion soms) for individuals and individual entrepreneurs was extended by six months of 2020. It is
established that accrued and overdue interest on loans issued to legal entities and individuals by
commercial banks are not included in the total income when calculating income tax for this period.
By December 31
st
2020, micro-enterprises, small enterprises and individual entrepreneurs that have
suspended their activity, and their income from the sale of goods (services) decreased by more than
50 per cent against the first quarter of this year, were granted the right to interest-free deferment
(installment plan) for
turnover tax, property tax, land tax, tax for the use of water resources
(hereinafter referred to as 12 months) and social taxes (hereinafter referred to as six months).
Entrepreneurs are granted a deferral (installment plan) for six months without charging interest on
property tax, land tax, and tax for the use of water resources. The deadline for the payment of
property tax and land tax by individuals has been extended (from April 15
th
to October 15
th
).
Fourth, tax credits were granted. It was established to suspend the calculation of
a fixed income tax
and social tax levied on individual entrepreneurs who have been forced to cease their activities
during the period of quarantine measures. Small businesses have been exempted from:
Property tax and land tax payable for April and May 2020, for which interest-free deferment
(installment plan) was provided; and
Penalties and fines for land tax and property tax, as of May 15
th
2020, accrued since January
1
st
2020.
These privileges allowed the saving a total of 230 billion soms for almost 4,000 enterprises and using
these funds as working capital.
Tax rates and fees have been reduced (for the period from April 1
st
to October 1
st
):
The minimum monthly amount of social tax for individual entrepreneurs has been reduced
twice;
The amount of deductions of enterprises engaged in the wholesale trade in
alcoholic
beverages has decreased from five to three per cent; and
For catering enterprises, the amount of fees for the right to the retail sale of alcoholic
beverages has been reduced by 25 per cent of the established amounts.
In terms of volumes used for irrigation of
agricultural land, tax rates for the use of water resources
have been reduced by 50 per cent of the established rates. Small businesses, markets, and shopping
malls, cinemas, catering, public transport, sports, and fitness facilities, as well as legal
entities
dealing with passenger transportation, the provision of household services, rental of premises,
including those for dinners, have been exempted from property tax and land tax payments (from
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143
June 1
st
to September 1
st
2020). This has allowed saving 260 billion soms for almost 60,000
enterprises and increasing their working capital.
Fifth, additional benefits were provided for microenterprises and small enterprises. Micro-
enterprises and small enterprises have received the right to defer payment of value-added tax for
the import of goods (works, services) up to 120 days. For the period from May 1
st
to July 1
st
of the
current year, the social tax rate for micro-firms and small enterprises was reduced from 12 per cent
to one per cent. This privilege made it possible for all micro-firms and small enterprises of the
republic to freely use 550 billion soms as working capital. To prevent
a decrease in the working
capital of micro-firms and small enterprises, as of May 15
th
2020, the collection of debts on interest
and accrued fines for violation of tax laws was suspended until September 1
st
. The State
Entrepreneurship Support Fund has begun paying compensation to business entities to reimburse
their interest expenses on loans.
Sixth, leasing companies have been provided with rental benefits and some amenities. The
calculation and collection of rent for the use of state property by entrepreneurs forced to cease their
activities have been suspended. The reduced tax burden on tenants has provided an opportunity to
reduce or extend the term of lease payments. Business entities who had to suspend their activities
have been entitled to interest-free deferment (up to six months) of payment of
personal income tax
received from leasing non-residential premises. The amount of accrued and overdue leasing interest
income of leasing companies has been exempted from income tax.
Seventh, measures have been taken to support exports. Uzbekistan has promptly introduced the
mechanism of customs clearance of imported food products, including by issuing permits before
entering the territory of the Republic of Uzbekistan. The Republican Commission for Development of
Export Potential in the Regions and Sectors has been entitled to independently decide on the
provision of subsidies at the expense of the funds allocated to the Export Promotion Agency to
reimburse part of transport costs of exporters.
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