Unofficial translation Tax code of the Republic of Uzbekistan

Name of the object of taxation
Tax rates, in percent
1.For the extraction of main and associated commercial minerals
Energy sources:
Natural gas	30
Natural gas utilized, in terms of sales volume	9
Gas from underground gasification	2,6
Gas condensate	20
Oil	20
Coal stone	4
Brown coal	4
Oil shale	4
Non-ferrous, rare and radioactive metals:
Refined copper	10
Molybdenum industrial product	10
Rhenium	10
Lead in concentrate	8
Metallic zinc	10
Tungsten concentrate	10.4
Uranium	10
Selenium	10
Tellurium	10
Indium	10
Bismuth	10
Precious metals:
Gold	10
Silver	10
Palladium	10
Platinum	10
Osmium	10
Gemstone raw materials:
Precious, semi-precious and ornamental stones in raw materials	24
Turquoise, listvenite, rhodonite, serpentine, marble onyx, cacholong, jasper, chalcedony, agate, hematite	24
Ferrous metals:
Iron	5
Titanium-magnetite ores	4
Manganese ores	4
Mining and chemical raw materials:
Rock (table) salt	3.5, but not less than 1000 sum / cubic meter
Potash salt	3.5
Sulphate salt	3.5
Phosphorites (granular)	5
Carbonate raw materials (limestone, dolomite)	3.5
Limestone (for soda, cleaning industrial effluents using Biox technology)	3.5
Mineral pigments (clayey, iron oxide, carbonate)	5.5
Iodine	4.8
Agro-ore raw materials (glauconite, bentonite and palygorskite clays, granular and nodular phosphorites, used in their natural form)	3.5
Mining raw materials:
Fluorspar	21.2
Natural graphite	8
Primary kaolin (concentrate) , in sales volume	7.9
Kaolin secondary, in sales volume	7.9
feldspar raw material (pegmatite, feldspar, petrosilex, leucocratic granite, quartz-feldspar)	6,5
quartz sand (glass)	3
Sandstone (glass)	5
Bentonite clays (drilling muds)	4.8
Talc and talc stone	4
Talcomagnesite	4
Wollastonite	4
Asbestos	4
Basalt for the production of mineral fibers	4
Barite concentrateclays	4
Refractory clays	4
Dolomite limestones (glass, for metallurgy, refractory), flux limestone	5, but not less than 11500 sum / m3
Quartz and quartzite (for the production of glass, technical silicon, silicomanganese, dinas)	6.5
Molding raw materials (sands, clays)	4
Vermiculite	4
Raw materials for mineral wool ( dolomite, loess-like rocks)	5
Shell limestone for feeding animals and poultry	5
Serpentinite (refractory raw materials)	5
Construction materials:
Cement raw materials, with the exception of limestone for cement production (marls, clays, shales, loess-like rocks, loams, clayey shells, kaolins, volcanic rocks, pelitic tuffites, basalts, diabases, basaltic andesites, gleys, iron-containing additives, magnetite — hematite rocks, quartz sand, etc.)	10
Limestone for cement production	45000 sum / ton *
Limestone for lime production	5
Blocks of natural facing stone (limestone, limestone-shellstone, travertine-like limestone, marble, granite, granodiorite, granosyenite, nepheline syenite, gabbro, granosyenite porphyry, ignimbrites of quartz porphyry, liparitodacites, volcanic tuff, volcanogenic rocks, sandstone)	5, but not less than 20,000 sum / cubic meter
Marble chips	5, but not less than 17000 sum / cubic meter
Expanded clay raw materials (bentonite and argillite clays)	5
Brick and tile raw materials (loess, loams, loess-like rocks, clays and sands as a weaker)	5, but not less than 7000 sum / cubic meter
Gypsum, gypsum and anhydride, ganch	5, but not less than 9500 sum / cubic meter
Sawing stones, rubble stone and crushed stone	5, but not less than 7000 sum / cubic meter
Raw materials for shore protection works (limestone, porphyrites, granites)	5, but not less than 10000 sum / cubic meter
Building sand	5, but not less than 8500 sum / cubic meter
Sand and gravel	5, but not less than 7500 sum / cubic meter
Sandstone	5
Limestone-shell rock	5, but not less than 12,500 sum / cubic meter
Construction crushed stone (carbonate rocks)	5, but not less than 10000 sum / cubic meter
Construction crushed stone (granites, porphyrites and shale rocks)	5, but not less than 10000 sum / cubic meter
Porcelain raw materials (porcelain stone, white-burning clay shale)	5
Raw materials for the construction of plots (sand and gravel materials, clay rocks, sand, bentonite clays, limestones)	5
Other common minerals (marls, argelites, amvrites, etc.)	5
2. Commercial minerals extracted from technogenic mineral formations	30% of the tax rate for the extraction of the main commercial mineral

* The tax at the established tax rate shall be payable by cement producing plants, as well as by subsoil users who sell cement raw materials — limestone to them. For plant, which use coal for cement production, the tax rate shall be reduced by 50 percent.
For individual taxpayers who mine precious, non-ferrous, rare and radioactive metals, the President of the Republic of Uzbekistan may establish higher tax rates.
Article 453. Tax Period. Reporting Period
The tax period shall be the calendar year.
The reporting period shall be:
for legal entities — the month;
for physical persons — the calendar year.
Article 454. Procedure for the Calculation of Tax, Submission of Tax Reporting and Payment of Tax
Tax shall be calculated on the basis of the tax base and the established tax rate.
The tax amount for certain types of commercial minerals shall be determined on the basis of the tax base and the established tax rate, but not less than the established tax amount.
Tax reporting shall be submitted to the tax authorities for the place of tax registration, and for non-metallic commercial minerals — for the place of extraction in the following time limits:
by legal entities — on a cumulative basis, monthly, no later than the 20th day of the month following the reporting period, and at the end of the year — on the date of submission of annual financial statements;
by physical persons — once a year no later than February 1 of the year following the tax period.
The tax shall be payable:
by legal entities — monthly, no later than the 20th day of the next month, and at the end of the year — no later than the time limit for submission of annual financial statement;
by physical persons — no later than the time limit for submission of tax reporting.
SECTION XIX. LEVIES
Chapter 65. Motor Transport Levies
Article 455. Types of Motor Transport Levies
Motor transport levies shall be:
levy for the purchase and (or) temporary import of motor vehicles into the territory of the Republic of Uzbekistan;
levy for entry into the territory and transit through the territory of the Republic of Uzbekistan for motor vehicles of foreign states.
Article 456. Taxpayers
Taxpayers of the levy for the purchase and (or) temporary import of motor vehicles into the territory of the Republic of Uzbekistan shall be residents and non-residents of the Republic of Uzbekistan who purchase and (or) import on the temporary basis motor vehicles into the territory of the Republic of Uzbekistan.
Taxpayers of the levy for entry into the territory and transit through the territory of the Republic of Uzbekistan of motor vehicles of foreign states shall be the owners or users of those motor vehicles.
Taxpayers of the levy for the purchase of new motor vehicles of domestic production shall be manufacturers of those motor vehicles.
Article 457. Object of Taxation
The object of taxation for levies shall be :
purchase and (or) temporary import of motor vehicles into the territory of the Republic of Uzbekistan;
entry into the territory and transit through the territory of the Republic of Uzbekistan of motor vehicles of foreign states.
Article 458. Tax Base
The tax base shall be:
the engine power of motor vehicles which are purchased and (or) temporarily imported to the territory of the Republic of Uzbekistan in horse power or the value of motor vehicles;
motor vehicles of foreign states upon entry to the territory and transit through the territory of the Republic of Uzbekistan.
Article 459. Tax Benefits
The following shall be exempt from payment of the levy for the purchase and (or) temporary import of motor vehicles into the territory of the Republic of Uzbekistan:
1) disabled persons of all groups who purchase a light car adapted for manual control by the manufacturer and (or) a motorized carriage;
2) citizens, who receive light cars and motorized carriages on the basis of a gift or inheritance agreement from close relatives;
3) road transport enterprises, the main activity of which is the carriage of passengers, which have a license of the established form for the carriage of passengers in accordance with the legislation, with regard to vehicles for carrying passengers (except for light cars and fixed-route taxis);
4) legal entities — with respect to purchased mining dump trucks with a carrying capacity of over forty tons;
5) orphanages, specialized boarding schools, centers for disabled children, boarding homes for the elderly and young disabled people, as well as medical institutions funded from the budget, which received (purchased) motor vehicles in the form of sponsor (gratuitous) assistance;
6) legal entities — in respect to of transfer without consideration of motor vehicles from balance sheet to balance sheet within one system (state and economic governance body);
7) the legal successor which received the motor vehicle as a result of reorganization;
8) lessors, which purchase motor vehicles for leasing to legal entities specified in paragraphs 3 and 4 of this Article.
Article 460. Procedure for Payment of Levies
The levy for the purchase and (or) temporary import into the territory of the Republic of Uzbekistan of motor vehicles shall be levied upon their state registration, re-registration with the bodies of the Ministry of Internal Affairs of the Republic of Uzbekistan in the following cases of:
1) obtaining ownership of motor vehicles on the basis of a purchase-sale agreement, exchange, donation, transfer without consideration, as well as other transactions which are not prohibited by legislation;
2) receiving into the charter fund (authorized capital) of a legal entity or as dividends in the manner prescribed by legislation;
3) the purchase of motor vehicles for leasing, except for the events provided for in paragraph 8 of Article 459 of this Code. The levy shall be recovered from the lessor or from the lessee by written agreement of the parties. In the event where the lessor is a non-resident of the Republic of Uzbekistan, the levy shall be recovered from the lessee. The levy shall not be recovered again upon the expiry of the lease agreement, in course of re-registering the vehicle under the leasing (subleasing) agreement;
4) temporary import of motor vehicles into the territory of the Republic of Uzbekistan.
Where new motor vehicles of domestic production have been purchased, the levy shall be payable by the manufacturers of vehicles in the manner prescribed by legislation.
The levy for entry into the territory and transit through the territory of the Republic of Uzbekistan of motor vehicles of foreign states shall be recovered upon entry into the territory of the Republic of Uzbekistan of a motor vehicle of a foreign state.
SECTION XX. Tax on Turnover
Chapter 66. Calculation and Payment of Turnover Tax
Article 461. Taxpayers
Taxpayers of tax on turnover (hereinafter in this Section referred to as “taxpayers”) shall be deemed:
1) legal entities of the Republic of Uzbekistan (hereinafter in this Section referred to as “legal entities”) the aggregate income of which for the tax period does not exceed one billion soums;
2) individual entrepreneurs, the income of which from the sale of goods (services) for the tax period exceeds one hundred million soums, but not more than one billion soums.
Turnover tax shall not apply to:
1) legal entities and individual entrepreneurs which carriage (import) goods through the customs border of the Republic of Uzbekistan;
2) legal entities which produce excisable goods (services) and (or) persons, who are engaged in the extraction of commercial minerals;
3) legal entities which are agricultural producers, where they have irrigated agricultural land with an area of fifty hectares or more;
4) legal entities which sell gasoline, diesel fuel and gas;
5) legal entities which organize the lottery;
6) a trustee who is a participant in a simple partnership, and who is entrusted to manage the affairs of a simple partnership, with respect to activities which are carried out within the framework of a simple partnership agreement;
7) legal entities which are the owners of empty buildings, non-residential structures and objects of construction in progress, as well as those which do not use production areas, where a conclusion on their ineffective use was made in the manner prescribed by legislation.
8) legal entities which carry out the construction of objects (except for current and major repairs) at the expense of centralized sources of financing.
Article 462. Special Considerations of Applying the Tax on Turnover
Taxpayers specified in clause 1 of part one of Article 461 of this Code shall have the right to choose a special tax regime which provides for the payment of tax on turnover (hereinafter in this Section referred to as “tax”) instead of paying value added tax and tax on profit.
Taxpayers specified in clause 1 of part one of Article 461 of this Code shall have the right to switch to payment of tax starting from the next tax period. For this, legal entities shall notify the tax authority for the place of tax registration on the switching to payment of this tax in the form established by the State Tax Committee of the Republic of Uzbekistan, no later than ten days before the start of the next tax period in which they switch to paying turnover tax.
Where the income of the taxpayers, referred to in paragraph 2 of part one of Article 461 of this Code, from the sale of goods (services) for the tax period exceeds one hundred million soums, they shall switch to the payment of turnover tax with respect to the amount of excess, unless otherwise provided by part four of this Article.
Individual entrepreneurs referred to in paragraph 2 of part one of Article 461 of this Code, shall have the right to choose to pay value added tax and tax on profit instead of paying turnover tax. For selection of the taxation procedure, individual entrepreneurs shall send a notice to the tax authority for the place of tax registration in the form established by the State Tax Committee of the Republic of Uzbekistan, no later than five days from the date when income from the sale of goods (services) exceeded one hundred million soums.
Where the individual entrepreneur has not submitted the notice within the time limits specified in part four of this Article, he shall pay tax on turnover.
Newly created legal entities shall have the right to choose to pay turnover tax from the date of state registration by indicating the selected taxation procedure upon state registration of a business entity.
Legal entities shall have the right to rescind voluntarily from payment of tax on turnover starting from the 1st day of the month following the month on which they have submitted an application for registration as a taxpayer of value added tax in accordance with Article 237 of this Code, upon simultaneously rescinding to pay tax on turnover.
Taxpayers who voluntarily switched to payment of value added tax and tax on profit shall have the right to switch to payment of turnover tax again no earlier than in twelve months, provided that their total income for the current tax period have not exceeded one billion soums.
Taxpayers, including newly created legal entities and newly registered individual entrepreneurs, total income of which during the tax period exceeded one billion soums, shall switch to the payment of value added tax and tax on profit starting from the first day of the month following the month in which such an excess has taken place.
Where a newly created legal entity or a newly registered individual entrepreneur has received the amount of income from the sale of goods (services) from the date of registration to the end of the calendar year which exceeded the amount equal to one billion soums, divided by 365 and multiplied by the number of days from the date of registration to the end of the calendar year, then such persons shall switch to the payment of value added tax and tax on profit from the beginning of the year following the year of registration.
Taxpayers, who provide intermediary services under a commission, delegation contract and other agreements for the provision of intermediary services, including individual entrepreneurs who provide intermediary services to operators and (or) telecommunications providers, shall determine income from the sale of goods (services) on the basis of total sales turnover ( transaction amount).
Legal entities which own empty buildings, non-residential structures and objects of construction in progress, as well as those which do not use production areas, shall switch to the payment of value added tax and tax on profit starting from the first day of the month following the month in which a conclusion on their ineffective use has been made.
Legal entities, which own the objects of construction in progress and non-used production areas, shall switch to the payment of value added tax and tax on profit starting from the first day of the month following the month in which the conclusion of the authorized body has been issued, which is authorized to issue a conclusion on non-implementation of the investment project.
Legal entities which carry out the construction of objects (except for current repairs and overhauls) at the expense of centralized sources of financing shall switch to the payment of value added tax and tax on profit starting from the first day of the month following the month in which the contract for such construction has been concluded.
The payment of tax shall not exempt the taxpayer from:
the fulfilling the duties of a tax agent which are imposed on by this Code;
obligations to issue invoices, maintain purchase and sales ledgers, unless otherwise provided by this Code.
Article 463. Object of Taxation
The object of taxation shall be the aggregate income which is determined in accordance with Chapter 43 of this Code, excluding the income which is not taxable in accordance with Article 304 of this Code, and with account taken of the special considerations provided for by this Article.
For tax purposes, income from the sale of goods (services) shall be understood to mean for:
construction, construction and installation, repair and construction, commissioning, design and survey and research organizations — income from sales, respectively, of construction, construction and installation, repair and construction, commissioning , design and survey and research services performed on their own. In this respect, where the customer bears the obligation to provide the above services with materials according to the contract, the income from the sale of services performed on its own shall be defined as income from the performed and confirmed services without including the cost of the customer's materials, while the ownership of the customer with respect to these materials shall retain;
legal entities which provide assets for financial lease (leasing) — the amount of interest income on financial lease (leasing);
legal entities and individual entrepreneurs which provide intermediary services under a commission, delegation and other agreements for the provision of intermediary services — the amount of remuneration for the services rendered;
legal entities which transfer goods (services) without consideration — the value of goods (services) or their purchase price (with account taken of the costs connected with the purchase of goods), unless otherwise provided by this Article. This norm shall not apply to the transfer of goods (services) without consideration to environmental, health-improving and charitable foundations, institutions of culture, health care, labor, social protection of the population, physical culture and sports, and educational institutions;
non-commercial organizations — income not specified in part one of Article 318 of this Code.
The object of taxation shall equally be:
1) the transfer of goods (services):
a) to a participant upon his withdrawal (departure) from the list of participants, or where the participating interest in a legal entity has been reduced or a legal entity buys out a participating interest (part of a share) in this legal entity ;
b) to a shareholder where a legal entity buys out shares issued by it from a shareholder;
c) to a shareholder or participant upon the liquidation of a legal entity;
2) the transfer of goods (services) as a labor payment to physical persons or as a payment of dividends;
3) the transfer of goods and other property on a tolling basis, where the goods and (or) property have not been returned in the form of a processed product within the time limit established by the contract;
4) the transfer of reusable packaging, returnable to the seller, where the packaging has not been returned within the time limit established by the contract for the supply of products in such a packaging.
The sale or transfer of vouchers without charging which grant the right to receive goods (services) shall be deemed as the sale of these goods (services).
Income from long-term contracts shall be included in the aggregate income in the manner prescribed by Article 303 of this Code.
Where the foreign currency accounts of the balance sheet has been being revaluated, the object of taxation shall be the balance between positive and negative exchange rate differences.
In this respect. where the amount of negative exchange rate difference exceeds a positive amount, the amount of the excess shall not reduce the tax base upon calculation of tax.
Aggregate income shall not include income received by taxpayers before the switching to payment of turnover tax, during the period of payment of tax on income of physical persons, or value added tax and tax on profit.
Article 464. Tax Base
The tax base shall be the aggregate income calculated in accordance with Article 463 of this Code, with deduction of:
1) income from government bonds and other government securities of the Republic of Uzbekistan, as well as income from international bonds of legal entities which are residents of the Republic of Uzbekistan;
2) dividends which are taxable at a tax agent;
3) the value of the returnable reusable packaging, if its value has previously been taken into account in the income from the sale of goods (services);
4) income received upon the liquidation of depreciable assets at the expense of the amount of their revaluation which has exceeded the amount of previous markdowns;
5) income of previous years identified in the reporting year. These incomes shall be taxable with account taken of the recalculation of taxes in accordance with the legislation of the period in which they were formed;
6) income received from the sale of goods (services) for export, where the income from the export of goods (services) is more than 15 percent of the aggregate income.
1) brokerage organizations — by the amount of the commission which is transferred to the exchange from the transaction amount;
2) legal entities which provide intermediary services under a commission, delegation contract — for the amount of customs payments payable for the import of goods, in a share of the goods sold;
3) subjects of tourism activities — for the amount of resources which are allocated for the implementation of software products and information systems for online booking and sale of tourism services.
Article 465. Special Considerations Relating to Determination of the Tax Base of Individual Entrepreneurs
The tax base of an individual entrepreneur shall be aggregate income, which is calculated in accordance with Article 463 of this Code, received by him in the framework of entrepreneurial activity.
Physical person must indicate that he is acting as an individual entrepreneur, upon conclusion of transactions connected to his entrepreneurial activity, unless this clearly follows from the very environment of the transactions.
The income of an individual entrepreneur which is taxable by tax on income of physical persons, and income from the sale of personal (family) property, which is not connected to his entrepreneurial activity, shall not be taxable by turnover tax.
Article 466. Adjustment of Income
An increase or decrease in the tax base in the reporting tax period shall be deemed an adjustment of income.
Income shall be adjustable in the following cases:
1) return of goods in full or in part;
2) changes in the terms of the transaction;
3) price changes, use of discounts by the buyer;
4) refusal from provided services.
Income with respect to cases provided for in part two of this Article shall be adjusted within a one-year period, and for goods (services) for which the warranty period has been established — within the warranty period.
Adjustment of income shall be carried out on the basis of documents which confirm the occurrence of the events specified in part two of this Article. In this respect, the seller of the goods (services) shall adjust the income from the sale of goods (services) in the manner prescribed by Article 257 of this Code.
Income with respect to the cases provided for by part two of this Article shall be adjusted in the tax period in which these cases have been occurred.
Income shall also be adjusted in the event a taxpayer switches from the generally established procedure of taxation to payment of turnover tax, except for cases of application of tax benefits for adjusted income.
Article 467. Tax Rates
Tax rates shall be established in the following amounts: