Tashkent financial institute department of finance from "finance"



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Foreign investments ANALYSIS

Article 31. Assistance to investors and enterprises with investments in cooperation with State bodies

The authorized state body in the field of state regulation of investment activity to facilitate investors in cooperation with other state bodies organizes work on the principle of "one window".

In order to organize work on the principle of "one window" authorized state body in the field of state regulation of investment activities and its territorial departments provide public services, including through the relevant government service Centers.

The organization works on the principle of "one window" also includes:



  • receiving and advising on available public services;

  • assistance in the preparation and execution of documents necessary to obtain government services;

  • assistance in obtaining digital signature, electronic statements and other documents;

  • Accompany to investors in state bodies and public authorities in receiving state services.

The authorized state body in the field of state regulation of investment activity assists adoptive Prime Minister of the Republic of Uzbekistan for consideration of applications of entrepreneurs in solving problems related to attracting foreign and domestic investments and implementation of projects with their participation.

The usage of tax incentives, financial subsidies and regulatory exemptions directed at attracting foreign investors is no substitute for pursuing the appropriate general policy measures (and focusing on the broader objective of encouraging investment regardless of source). In some circumstances, incentives may serve either as a supplement to an already attractive enabling environment for investment or as a compensation for proven market imperfections that cannot be otherwise addressed. However, authorities engaging in incentive-based strategies face the important task of assessing these measures’ relevance, appropriateness and economic benefits against their budgetary and other costs, including long-term impacts on domestic allocative efficiency. Authorities need also to consider their commitments under international agreements. The relevance and appropriateness of FDI incentive strategies should be examined at regular intervals. Transparency and accountability at all levels of governments greatly increases the success of such evaluations.9



  • The provision of benefits and preferences for state support of investment activity

  • Privileges and preferences used for government support of investments and investment activity may include:

  • give value or property rights of state-owned objects to the investor with preferential or zero redemption;

  • tax and payments incentives;

  • subsidizing interest rates on loans received by the investor for implementation of the investment project.

  • Privileges and preferences are given according to:

  • the number of investments;

  • conditions of the place of realization of the investment project;10

Privileges, provided by the first part of the present article for state support of investments and investment activity, are accordingly provided by decisions of Council of Ministers of the Republic of Karakalpakstan, governors of regions and Tashkent city, including at the expense of budget of the Republic of Karakalpakstan, is possible to give from local budgets of provinces and Tashkent city. Privileges and preferences are given to investors considering investments in the respective territory, depending on the level of infrastructure development in the area.

Enterprises created with foreign direct investment and specializing in the production of goods (rendering of services) in the sectors of the economy according to the list approved by law, provide for the specifics of applying certain tax benefits in the manner established by the Tax Code of the Republic of Uzbekistan.

The Government of the Republic of Uzbekistan may provide an investment subsidy in the form of financial assistance provided in the form of investment preferences for the implementation of an investment project to ensure the necessary engineering and communication conditions, as well as the provision of benefits.

The investment subsidy to the investor in the form of the necessary engineering and communication conditions is ensured through the construction by the Republic of Uzbekistan of external engineering and communications networks leading to the object of investment activity.An investment subsidy may also be provided as tax and customs benefits.

The authorized state body in the field of state regulation of investments and investment activity, together with the Ministry of Finance of the Republic of Uzbekistan, considers the investor's application for the provision of investment subsidies in the manner and terms established by the Law of the Republic of Uzbekistan “On Appeals of Individuals and Legal Entities” and makes a proposal to the Government of the Republic of Uzbekistan.11

Sources of decentralized investments are:



  • own funds of the investor;

  • bank loans received without a guarantee of the Republic of Uzbekistan, including from foreign banks;

  • direct foreign investments. Non-centralized investments can be made from other sources that are not contrary to the legislation.

An investor carries out management of decentralized investments independently.12

An investor, a commercial bank, including a foreign bank, makes the decision on the implementation of decentralized investments.13




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