By the Decision of the President of the Republic of Uzbekistan "On improvement of mechanisms of tax deferral by domestic and foreign Investors" No.ПП-5274 dated from November 2, 2021 (the "Decision No.ПП-5274"), the business entities have been granted tax benefits in the form of a deferral.

The Decision No.ПП-5274 defines the scope of entrepreneurs and the conditions for acquisition of the right to deferral. According to the document, the deferral applies as from January 1, 2022 to investors in the acquisition of a property right to land, buildings and constructions with a total area of more than 1,000 square meters for 6 months. The deferred tax is based on the value of the object of the tax.

This deferral shall not apply to:

  • entities with more than 50 per cent State participation;
  • subsoil users
  • producers of export products;
  • entrepreneurs included in the group of taxpayers with an increased risk of violation of tax legislation.

The right to deferral of payment of taxes is exercised within 3 months from the date of the State registration of the property right to land, buildings and structures with the notification of the tax authorities.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.