Taxation in 2018 Uzbekistan: Comments of the Tax Committee

Картинки по запросу налогообложениеThe present information message on the introduced additions and changes to the tax legislation and approved rates of taxes and other mandatory payments for 2018 was prepared in accordance with the following legislative documents:

Law of the Republic of Uzbekistan No. ZRU-454 of December 29, 2017 “On Amendments and Additions to Certain Legislative Acts of the Republic of Uzbekistan in Connection with the Adoption of the Main Directions of the Tax and Budget Policy for 2018”;

The Law of the Republic of Uzbekistan of December 30, 2017 No. ZRU-455 “On Amendments and Additions to Certain Legislative Acts of the Republic of Uzbekistan in Connection with the Improvement of Tax Administration”;

The Law of the Republic of Uzbekistan No. ZRU-456 of January 3, 2018 “On Amendments and Additions to Certain Legislative Acts of the Republic of Uzbekistan in Connection with the Improvement of the Activities of Certain State Bodies, and Adoption of Additional Measures to Ensure Protection of Citizens’ Rights and Freedoms”;

Decree of the President of the Republic of Uzbekistan dated 29 December 2017 No. PP-3454 “On the forecast of the main macroeconomic indicators and parameters of the State Budget of the Republic of Uzbekistan for 2018”.

A. Changes and amendments to the Tax Code of the Republic of Uzbekistan in accordance with the Law of the Republic of Uzbekistan of December 29, 2017 No. ZRU-454 “On introducing amendments and additions to some legislative acts of the Republic of Uzbekistan in connection with the adoption of the main directions of tax and budget policy for 2018 “.

In accordance with the Law of the Republic of Uzbekistan dated December 29, 2017, No. ZRU-454 “On Amendments and Additions to Certain Legislative Acts of the Republic of Uzbekistan in Connection with the Adoption of the Main Directions of the Tax and Budget Policy for 2018”, amendments and additions were made to 47 articles of the Tax Code and 12 articles (sections XIII, XVI1 and Chapter 53) from this code are excluded.

In particular,

1. In connection with the consolidation of corporate income tax and the tax on the improvement and development of social infrastructure in one tax – corporate income tax, the relevant amendments were made to articles 23, 30, 354, 363 and 376 of the Tax Code, and also lost force section XIII and articles 295, 296, 299, 300 of the Tax Code.

In accordance with the changes introduced to Article 154 of the Tax Code for non-resident legal entities of the Republic of Uzbekistan, which carry out activities through a permanent establishment, the additional tax on net profit was abolished, and the minimum amount of taxable profits for the purposes of calculating the profit tax in determining taxable profits was reduced from 10 up to 7 percent of the amount of expenses provided for in part three of this article.

2. Amendments to Articles 23, 312, 313, 315 and to the title of Section XV, Chapter 52 of the Tax Code have been amended, and Section XVI1, Chapter 53 and the title of Section XVI of this Code have been deleted in connection with the consolidation of mandatory contributions to the extrabudgetary Pension Fund, the Republican the road fund and the off-budget Fund for the development of the material and technical base of educational and medical institutions in a single payment – mandatory contributions to state trust funds and the establishment of a unified procedure for determining the tax base.

3. In accordance with the changes in articles 301, 302, 304 of the Tax Code, the tax on consumption of gasoline, diesel fuel and gas will be paid regardless of the purpose of consumption, except for the volume of liquefied gas sold to the population for domestic needs through specialized gas supply enterprises. In this regard, the words “for vehicles” are excluded from the title of the tax on consumption of gasoline, diesel fuel and gas for vehicles in these articles, as well as in articles 22, 80, 130, 204, 222, 355 and section XIV of the Tax Code.

4. Amendments introduced to Article 121 of the Tax Code envisage an increase in the amount of the fine imposed by individuals and legal entities for the use of land plots without documents, or in a larger amount than indicated in the documents confirming the right to them.

5. Additions made to Article 145 of the Tax Code establish an expansion of the list of costs that are deductible when calculating income tax, and therefore the corresponding costs are excluded from the non-deductible expenses provided for in Article 147 of the Tax Code.

The following costs of legal entities that were previously non-deductible expenses, starting from January 1, 2018, are deductible expenses in determining the taxable base for corporate income tax:

price difference (losses) for goods produced by subsidiary farms and transferred for public catering needs of the taxpayer;

deductions to non-state pension funds;

deductions for the maintenance of the body of economic management;

one-time benefits for retired labor veterans;

expenses for training personnel in professions that are not in demand in the activities of the taxpayer;

costs for health and recreation activities not related to the production process;

expenses for accomplishment of works on improvement of cities and settlements;

expenses on payment of cost of services of confidential managing directors;

fee for completely worn-out equipment in service.

6. The addendum and the amendment to Article 146 of the Tax Code clarify that the individual expenses specified in clauses 1 to 3 of part one of this article may also be deducted in the current reporting period at the time of their occurrence, if this is provided for by the accounting policy of the legal entity. Such expenses include:

expenses for the development of new industries, workshops, units, as well as the production of new types of serial and mass production and technological processes;

complex testing (idle) of all types of equipment and technical installations in order to check the quality of their installation;

costs associated with the recruitment of labor and the training of personnel to work at a newly established enterprise.

7. Excluded norms from Articles 156, 179, 356 of the Tax Code provide for the abolition from April 1, 2018 of privileges, respectively for income tax, personal income tax and single tax payment for legal entities and individuals on income in the form of dividends directed to the authorized fund of the legal entity from which they are received.

8. The amendment made to Article 208 of the Tax Code provides for the abolition of the benefits for the value-added tax in respect of certain types of goods, works and services.

9. In accordance with the introduced amendment to Article 211 of the Tax Code, the exemption from the value-added tax on timber and timber imported by individuals in the framework of entrepreneurial activities was abolished. At the same time, this privilege is reserved for legal entities.

10. With a view to reducing the procedures for reviewing by the bodies of the State Tax Service and the Ministry of Finance of documents on the return of the amount of excess of value added tax generated from turnover taxed at zero rate, as well as granting to taxpayers the right to submit applications and necessary documents in electronic form through a personal taxpayer’s office, amended article 228 of the Tax Code.

11. The added addition to Article 261 of the Tax Code provides for a reduction in the tax base for the use of water resources on the volume of water drained back by thermal power plants and thermal power plants.

12. Amendments made to Articles 265, 266, 267, 268, 269 and 271 of the Tax Code provide for the exclusion of movable property from the object of taxation on the property tax of legal entities, while the objects of taxation are immovable property, including those received under a financial lease agreement leasing), objects of unfinished construction and equipment that was not put into operation within the prescribed period. Also for non-residents of the Republic of Uzbekistan carrying out and not carrying out activities in the Republic of Uzbekistan through a permanent establishment, the object of taxation is immovable property that is owned in the territory of the Republic of Uzbekistan.

13. In order to establish the taxation of the property of individuals based on the cadastral value of the property, the relevant amendments were made to Articles 176, 274 and 277 of the Tax Code.

14. Amendments to Articles 285 and 286 of the Tax Code provide for changing the deadlines for submitting settlements and paying land taxes for legal entities. At the same time, payment of land tax from legal entities will be made before the 10th day of each month in the amount of one twelfth of the annual amount of land tax with the establishment of a deadline for submitting the calculation before January 10 of the current tax period.

15. In order to establish an order that provides for the occurrence of land tax obligations from the moment of allotment of land plots to individuals (starting from the next month after the allocation of the land plot), article 290 of the Tax Code introduces a corresponding amendment related to the abolition of benefits to individuals for land plots, granted them for individual housing construction, previously submitted for a period of 2 years from the month following the month of submission of the land plot.

16. The supplement to Article 291 of the Tax Code was introduced in accordance with paragraph 3 of the Program of Measures for the Further Development of Farmers, Dehkan Farms and Household Landowners, the Organization of the Effective Use of Their Sown Plots, approved by the Resolution of the President of the Republic of Uzbekistan No. PP-3318 dated October 10, 2017 , according to which when individuals do not sow crops or landscaped lands on an individual plot of land provided for ind individual housing construction and the improvement of the residential building, the land tax is paid in the order established by the legislation in triplicate.

17. In order to implement the norms established in the Decree of the President of the Republic of Uzbekistan of November 17, 2017 No. UP-5242 “On measures for the further development of handicraft and comprehensive support of artisans”, Article 311 of the Tax Code is supplemented with the rules providing for the introduction of the procedure for payment of insurance premiums:

subjects of artisan activity – members of the association “Hunarmand”, registered and operating in rural areas, in the first two years of their activity at a rate of 50 percent of the minimum monthly wage;

pupils of “Usta-Shogird” schools in the period of their work until the age of 25 – at least 2.5 times the minimum wage per year. The payment of the established amount of insurance contributions is counted for the year when calculating the length of service.

At the same time it is stipulated that the subjects of artisan activity – the members of the “Hunarmand” association, who receive pensions and old-age benefits, are exempted from paying insurance contributions to the extra-budgetary Pension Fund under the Ministry of Finance of the Republic of Uzbekistan.

18. The addendum to Article 349 of the Tax Code provides for the introduction of obligations to pay land tax for single tax payers who own land plots on the basis of ownership, possession, use or lease with an area exceeding the established maximum size.

19. In order to establish a single object of taxation for a single tax payment for procurement enterprises, as provided for wholesale enterprises, whose turnover from the sale of goods is turnover, Article 355 of the Tax Code is amended accordingly.

20. The amendments made to Articles 372 and 375 of the Tax Code provide for the fixing of the deadline for the payment of a fixed tax by legal entities and individual entrepreneurs no later than the 10th day of the month. In this regard, the deadline for the submission of legal entities for the calculation of this tax was also changed.

21. In accordance with paragraph 7 of the Decree of the President of the Republic of Uzbekistan of 1 December 2017 No. UP-5270 “On Measures for Cardinal Improvement of the State Support System for Persons with Disabilities”, article 3741 of the Tax Code was introduced providing for the payment of a fixed tax by an individual entrepreneur for employees, being invalids of I and II groups, in the amount of 15 percent of the minimum wage.

22. According to the addendum to the Law of the Republic of Uzbekistan “On State Power in the Fields”, the powers of the oblast, district, city are given the right to introduce decreasing and increasing coefficients to the established rates for certain taxes determined by law, taking into account the specifics of the regions and the place of implementation activities.

B. Changes and amendments to the Laws of the Republic of Uzbekistan “On Bankruptcy”, “On the State Tax Service”, “On Electronic Commerce”, as well as in the Civil and Tax Codes in accordance with the Law of the Republic of Uzbekistan of December 30, 2017 No. ZRU- 455 “On introducing changes and amendments to some legislative acts of the Republic of Uzbekistan in connection with the improvement of tax administration”.
 

In accordance with the Law of the Republic of Uzbekistan No. ZRU-455 “On Amendments and Additions to Certain Legislative Acts of the Republic of Uzbekistan in Connection with the Improvement of Tax Administration” dated December 30, 2017, amendments and additions were made to 27 articles of the Law of the Republic of Uzbekistan “On Bankruptcy”, Article 26 of the Civil Code of the Republic of Uzbekistan, Article 6 of the Law of the Republic of Uzbekistan “On State Tax Service”, on 2 articles of the Law of the Republic of Uzbekistan “On Electronic Commerce” and on 23 articles of Taxes th code.

In particular,

1. Supplements to Articles 22, 67 of the Tax Code and a new Chapter 121 “Tax Monitoring” establish the introduction of tax monitoring, which provides for an extended information exchange between tax authorities and bona fide taxpayers, providing them with comprehensive assistance in resolving current tax issues.

According to the amended Article 761 of the Tax Code, tax monitoring can be carried out against a taxpayer whose sales of goods (works, services) as of January 1 of the current year are more than seventy thousand times the minimum wage.

Tax monitoring is carried out at the request of the taxpayer to participate in the tax monitoring for the next year, with the application being submitted by the taxpayer to the state tax service at the taxpayer’s place of tax registration no later than July 1 of this year in written form, including in electronic form.

Article 762 of the Tax Code establishes that in the course of tax monitoring the body of the state tax service has the right to demand from the taxpayer the necessary documents, information, explanations related to the correctness of the calculation, the completeness and timeliness of payment of taxes and other mandatory payments, which must be submitted within ten days from the day the taxpayer receives the relevant demand.

Article 763 of the Tax Code supplemented with the procedure for sending a reasonable opinion to the taxpayer by the state tax service, as well as granting the right to taxpayers to send to the state tax service authorities a request for a reasoned opinion with their views.

A justified opinion of the body of the state tax service is understood as a document reflecting the opinion of the body of the state tax service on compliance with tax legislation, the correctness of the calculation, completeness and timeliness of payment of taxes and other obligatory payments by the taxpayer.

It also establishes the procedure for conducting a process of joint discussion and drawing up a mutual agreement in the event that the taxpayer submits objections to the bodies of the State Tax Service on the reasonable opinion of the tax authorities.

Article 765. The Tax Code provides for cases in which tax monitoring is prematurely terminated.

2. In accordance with the amendments introduced in Articles 70 and 91 of the Tax Code, it is established that for the tax period for which tax monitoring is carried out, desk control and planned inspections of financial and economic activities are not carried out, except for cases of early termination of tax monitoring.

3. In order to implement the judicial procedure for collecting the amounts of taxes and other mandatory payments identified by the results of desk control, in the event that the taxpayer fails to submit justifications for the discrepancy or updated tax reports, an appropriate addition is added to Article 70 of the Tax Code.

4. In order to introduce the procedure for the application of tax holidays for economic entities that are bona fide taxpayers facing temporary financial difficulties, amendments are made to Articles 54, 55 and 354 of the Tax Code.

The deferment and (or) payment by installments of payment of taxes and other mandatory payments is provided in the form of:

tax holidays, at the expense of changing the term of execution of the tax obligation, in which the taxpayer is given the opportunity within a certain period to reduce the tax payments due from him with subsequent payment;

transfer of the due date for a later period with a one-time or a step-by-step payment of tax debt.

Tax holidays are provided:

conscientious taxpayers who are facing temporary financial difficulties – for a period of up to twenty four months from the date of the relevant decision to grant tax holidays;

payers of a single tax payment, with the exception of those specified in paragraph 2 of part one of Article 350 of the Tax Code, for the payment of a single tax payment for a period of up to one year from the date of their state registration.

At the same time, bona fide taxpayers are taxpayers who, during the past two years, have fulfilled their tax obligations in full and on time.

5. Amendments and additions to Article 26 of the Civil Code, Article 62 of the Tax Code and Articles 1, 3, 5, 8, 11, 17, 18, 28, 36, 37, 38, 39, 128, 145, 147, 150, 174, 175, 176, 177, 178, 179, 180, 181, 183, 184 and 188 of the Law of the Republic of Uzbekistan “On Bankruptcy” are aimed at establishing bankruptcy proceedings against debtors – individuals who have lost the status of an individual entrepreneur, unable to satisfy creditors’ claims on monetary obligations and (or) fulfill obligations on obligatory payments arising from previous business activity .

6. With a view to introducing mechanisms for exercising tax control in the sphere of trade and rendering services on the Internet, appropriate amendments were made to Article 84 of the Tax Code and Article 11 of the Law of the Republic of Uzbekistan “On Electronic Commerce”, and this Law was supplemented with a new Article 111 ” Calculations in the field of electronic commerce. “

7. The new amended Article 222 of the Tax Code and the addition to Article 45 of this Code are aimed at establishing criteria for classifying business entities as “large taxpayers”.

Large taxpayers are legal entities of a particular category that are subject to tax administration on the basis of the criteria established by the State Tax Committee of the Republic of Uzbekistan. Criteria for large taxpayers do not give taxpayers the right to choose or change the taxation order.

Legal entities referred to large taxpayers shall be notified of this in writing, including through the personal office of the taxpayer, within five days from the date of adoption of the relevant decision by the state tax departments of the Republic of Karakalpakstan, oblasts and the city of Tashkent at the place of registration.

8. Amendments to Articles 57, 58, 155 of the Tax Code provide for the establishment of the procedure for the return of excessively paid taxes and other mandatory payments within 15 working days from the date of the taxpayer’s appeal to the authorized bodies.

Also, changes to Article 6 of the Law of the Republic of Uzbekistan “On the State Tax Service” and Article 56 of the Tax Code provide for the clarification of the term – within three working days from the date of submission of a written application by the taxpayer, the duty of the state tax service to submit financial statements to the financial authorities on the offset, and also notify the taxpayer of an independent offset of the excessively paid tax amount.

9. An addition was made to Article 67 of the Tax Code and the Code was supplemented with a new Article 711 “Monitoring the Compliance of the Reported and Actual Number of Employees of Business Entities”.

Monitoring of the compliance of the reporting and actual number of employees of economic entities is carried out to determine the compliance of the reporting and actual number of employees in order to clarify the taxable base of economic entities.

Monitoring compliance of the reporting and actual number of employees of economic entities is carried out by officials of the state tax service with a visit to the objects and territories used by the taxpayer with the participation of officials or representatives of the taxpayer by recounting the number of employees and processing the certificate.

The basis for monitoring the compliance of the reporting and actual number of employees of economic entities is:

the presence of discrepancies or inconsistencies in the tax reporting based on the results of desk control conducted by the state tax service, giving the possibility of assumptions about the underreporting of the wage fund, as well as the number of employees represented by taxpayers in the state tax service;

treatment of individuals and legal entities;

the existence of a deviation between the number of employees indicated in the information of ministries and departments and the reports submitted to the bodies of the state tax service.

Information on the monitoring performed for the compliance of the reporting and actual number of employees of economic entities is not included in the register of inspections.

Claiming from the taxpayer other information or explanations or interfering in financial and economic activities in another form by employees monitoring the compliance of the reporting and actual number of employees of economic entities is not allowed.

Based on the results of monitoring the compliance of the reporting and actual number of employees of economic entities on the day of its implementation, a responsible employee of the State Tax Service is compiled a certificate. The inquiry is made with the participation of an official or a representative of a taxpayer who was directly involved in the monitoring process, one copy of which is transmitted to them.

The results of monitoring are used exclusively in the implementation of the compliance of the reporting and actual number of employees of economic entities, as well as determining the taxable base.

The procedure for monitoring the compliance of the reporting and actual number of employees of economic entities after approval by the Cabinet of Ministers of the Republic of Uzbekistan will be brought to the taxpayers in accordance with the established procedure.

10. Pursuant to the Resolution of the President of the Republic of Uzbekistan No. PP-2796 of February 23, 2017 “On measures to further stimulate the use of production facilities by entrepreneurs,” the addition to Article 348 of the Tax Code establishes that legal entities owning construction-in-process objects and unused production facilities , applying a simplified taxation procedure, transfer to the payment of generally established taxes from the next month after the issuance of an authorization of the authority competent to issue a conclusion on the non-realization of the investment project.

B. Amendments and additions to the Tax Code of the Republic of Uzbekistan in accordance with the Law of the Republic of Uzbekistan of January 3, 2018 No. ZRU-456 “On Amendments and Additions to Certain Legislative Acts of the Republic of Uzbekistan in Connection with the Improvement of Activities of Certain State Bodies, and adoption of additional measures to ensure the protection of the rights and freedoms of citizens. “

In accordance with the Law of the Republic of Uzbekistan of January 3, 2018, No. ZRU-456 “On introducing changes and amendments to certain legislative acts of the Republic of Uzbekistan in connection with the improvement of the activities of certain state bodies, as well as the adoption of additional measures to ensure the protection of the rights and freedoms of citizens” amendments and additions were made to 11 articles of the Tax Code.

 

In particular,

1. The introduced amendments to Articles 84, 271, 283, 349 of the Tax Code stipulate that for objects not completed by construction within the regulatory deadline established in the design estimates, and in the absence of the established standard construction period, within twenty-four months from the beginning of construction on land plots allocated for carrying out entrepreneurial activities, property tax and land tax is calculated on the basis of the taxable base at a threefold rate of the established rate for warping information Territorial Inspection of State Architectural and Construction Supervision of the State Committee of the Republic of Uzbekistan for Architecture and Construction, except as required by law.

At the same time, this procedure also applies to business entities that have not fulfilled within twelve months the obligations to organize the production of goods and services at the completed facility, as well as to owners who purchased the facilities specified in this part. The procedure for calculating the timing of the beginning and completion of construction of objects is determined by law.

Also, the above procedure for the payment of property tax and land tax at a three-fold rate of the established rate applies to legal entities that apply a simplified taxation procedure for objects and land areas identified by territorial inspectorates of the State Architecture and Construction Supervision of the State Committee of the Republic of Uzbekistan for Architecture and Construction.

2. The additions made to Articles 130, 204, 355 of the Tax Code are aimed at establishing the procedure according to which, when exporting goods of own production for foreign currency at prices below cost, on the basis of a decision of the special authorized body to consider issues of exports of goods actually developing the world market prices, including below cost, for tax purposes, the proceeds from the sale of goods under corporate income tax, single tax payment, as well as tax the basis for the value-added tax is determined on the basis of the actual price of the sale of goods.

3. Pursuant to paragraph 75 of the State Program for the Implementation of the Strategy for the Five Priority Areas of Development of the Republic of Uzbekistan in 2017-2021 in the Year of Dialogue with the People and of Human Interests, approved by the Decree of the President of the Republic of Uzbekistan No. UP-4947 of February 7, 2017, Article 338 of the Tax Code introduces an addition providing for the establishment by the Cabinet of Ministers of the Republic of Uzbekistan of a different procedure for calculating the state fee for the certification of contracts of alienation of certain categories of immovable property property in the city of Tashkent and the Tashkent region.

So, according to the additions made to the Cabinet of Ministers resolution No. 533 of November 3, 1994 “On State Duty Rates” for the certification of real estate purchase and sale contracts in new buildings in Tashkent and the Tashkent region:

for individuals who permanently reside in the Republic of Uzbekistan and who have a permanent residence permit in other regions of the republic who purchase real estate with a cost of at least 2,500 minimum wages, the state duty rate is set at a rate of 5 percent of the contract amount;

for foreign citizens and stateless persons who arrived in the city of Tashkent and the Tashkent region from other states and who obtained a residence permit in the Republic of Uzbekistan that purchases real estate with a value of not less than 600 million soums, the rate of state duty is set at a rate of 10 percent of amount of the contract.
 
At the same time, for the certification of purchase and sale contracts, exchange and gift of real estate acquired with payment of the state fee in the above amounts, within three years from the date of its acquisition, the state duty is charged at 400 times the minimum wage.

D. Changes in tax legislation provided for by Decree No. PP-3454 of the President of the Republic of Uzbekistan dated December 29, 2017 “On the forecast of the main macroeconomic indicators and parameters of the State Budget of the Republic of Uzbekistan for 2018”.

I. For corporate income tax

1. In connection with the merger of the profit tax and the tax on the improvement and development of the social infrastructure from January 1, 2018, unified corporate profit tax rates have been established, which are approved in accordance with Appendix No. 7 to the Decree of the President of the Republic of Uzbekistan of December 29, 2017 No. PP-3454.

The basic tax rate for legal entities is set at 14 percent, against the current 15.5 percent in 2017 (income tax – 7.5 percent and the tax on improvement and development of social infrastructure – 8 percent).

For commercial banks, a rate of 22 percent is set against 23 percent in force in 2017 (income tax is 15 percent and the tax on improvement and development of social infrastructure is 8 percent).

At the same time, legal entities that have temporary benefits in the form of a full exemption from corporate income tax or a tax on the improvement and development of social infrastructure, pay corporate income tax at a rate reduced by half before the expiry of the benefits.

2. For legal entities that provide mobile communication services (cellular companies), the income tax rates are set depending on the level of profitability:

up to 20 percent – the tax rate is set at 14 percent;

over 20 percent – the tax rate is set at 50 percent of the amount of profit, exceeding the 20-percent level of profitability.

Profitability is defined as the ratio of profit before the payment of profit tax to the sum of the production cost of goods sold (goods, works and services). The procedure for calculating and paying income tax by legal entities that provide mobile communication services (cellular companies) is determined by the Ministry of Finance and the State Tax Committee of the Republic of Uzbekistan.

3. The tax rate on income paid in the form of dividends and interests to residents of the Republic of Uzbekistan is kept at a rate of 10 percent.

II. With respect to personal income tax

 

The third and fourth scales of rates of the tax to incomes of physical persons
from January 1, 2018 reduced by 0.5 percentage points and personal income tax rates were approved in accordance with Appendix No. 8 to the Resolution of the President of the Republic of Uzbekistan No. PP-3454 dated December 29, 2017, in the following amounts:

Taxable income

Tax rate

up to a single minimum wage

0 percent of the amount of income

from one (+ 1 soum) to five times the minimum wage

7.5 percent of the amount exceeding the one-time minimum wage

from five (+ 1 soum) to tenfold the minimum wage

tax from five times + 16.5 percent from the amount exceeding five times the minimum wage

from tenfold (+ 1 soum) of the minimum wage and above

tax from ten-fold +22.5 percent from the amount exceeding ten times the minimum wage

The scale of taxation by groups of taxable incomes is determined on the basis of the minimum wage set at the beginning of the year – as of January 1, 2018 (172,240 soums), and is not revised during the year with a change in the minimum wage.

With a view to calculating the amount of personal income tax, the minimum wage is taken into account on an accrual basis from the beginning of the year (the minimum wage for each month of the corresponding period from the beginning of the year).

From January 1, 2018, the amount of personal income tax calculated on the basis of the established rates payable to the budget is reduced by the amount of mandatory monthly contributions transferred to individual accumulative pension accounts of citizens, calculated at a rate of 2 percent of income subject to taxation on incomes of individuals, minus income, taxed at a “0” rate (one minimum wage).

For the purposes of taxation of individual incomes of individuals taxed at the minimum rate in accordance with the legislation, the minimum rate is accepted at a rate of 7.5 percent.

III. On a single tax payment

1. The rates of a single tax payment for micro-firms and small enterprises (except for trade and public catering establishments) are approved in accordance with Appendix No. 9-1, for trade and public catering enterprises, including micro-firms and small enterprises – in accordance with Appendix No. 9-2 and for certain categories enterprises – in accordance with Appendix No. 9-3 to the Resolution of the President of the Republic of Uzbekistan dated 29 December 2017 No. PP-3454.

The single tax payment rate for microfirms and small enterprises of all sectors of the economy, except as provided in paragraphs
2-7 of Appendix No. 9-1, in the amount of 5 percent.

2. The single tax payment rate for legal entities providing customs clearance services (customs brokers) is kept at a rate of 5 percent.

3. For microfirms and small enterprises receiving revenues from the organization of mass entertainment events by attracting legal entities and individuals (including non-residents) licensed to perform concert-entertainment activities, as well as for pawnshops, the single tax payment rate is maintained at the level of 2017 in the amount of 30 percent to the taxable base.

4. For microfirms and small enterprises:

brokerage offices (with the exception of brokers operating on the securities market), as well as enterprises providing intermediary services under a commission agreement, instructions and other contracts for mediation services, the single tax payment rate is maintained at a rate of 33 percent to the taxable base;

carrying out brokerage activity on the securities market, the single tax payment rate is kept at a rate of 13 percent to the taxable base.

At the same time, for micro-firms and small enterprises specified in this paragraph, the taxable base is defined as the amount of remuneration (gross income).

5. For legal entities that specialize in leasing stationary outlets (rental income is more than 60%) for the sale of food and non-food products, the single tax payment rate is maintained at the level of 2017 at a rate of 30 percent to the taxable base.

6. Starting from January 1, 2018, the activity of procuring organizations is equated to wholesale trade and the taxation procedure provided for wholesale trade enterprises applies to them.

At the same time, for procurement organizations engaged in the purchase, sorting, storage and packing of agricultural products, the single tax payment rate is set at 4 percent to the taxable base, against the established in 2017 at 33 percent.

 

7. For catering establishments, the single tax rate is retained at a rate of 10 percent to the taxable base, and for specialized public catering establishments serving general education schools, boarding schools, specialized secondary, vocational and higher education institutions in the amount of 8 percent to the taxable base.

8. For retailers (except for wholesale trade enterprises, as well as wholesale and retail trade and wholesale and retail pharmacy organizations) located in:

cities with a population of 100 thousand or more people – the rate of a single tax payment is kept at a rate of 4 percent;

other settlements – the rate of a single tax payment is kept at a rate of 2 percent;

remote and mountainous areas – the rate of a single tax payment is kept at a rate of 1 percent.

9. For retailers, regardless of the location of the goods turnover from the sale of alcohol products, tobacco products, gasoline, diesel fuel and liquefied gas, the single tax payment rate is maintained at the level of 2017 at a rate of 4 percent.

10. Since January 1, 2018, the right has been granted to non-profit organizations to pay a single tax payment in the manner provided for microfirms and small businesses in terms of the incomes they received from entrepreneurial activities, regardless of the number of employees.

11. For retailers engaged in wholesale as well as wholesale and retail trade (excluding wholesale and retail pharmacy organizations), the single tax payment rate is maintained at the level of 2017 at a rate of 5 percent.

12. The single tax payment rate is established for wholesale and retail pharmacy organizations located in:

cities with a population of 100 thousand and more people – at a rate of 3 percent;

other settlements – at a rate of 2 percent;

remote and mountainous areas – at a rate of 1 percent.

13. The assignment of settlements to hard-to-reach and mountainous areas is determined in accordance with the Instruction on the procedure for assigning settlements to hard-to-reach and mountainous areas (registered by the Ministry of Justice for No. 1868 of November 11, 2008).

14. The order has been preserved according to which if retailers have several outlets that are not independent legal entities and located in different settlements for which different rates of a single tax payment are established, then they must keep separate records of turnover for each trading point and pay a single tax payment at the rates set for these settlements.

15. The procedure has been preserved in accordance with which for all payers of a single tax payment (with the exception of retail trade enterprises) the established single base for calculating the minimum amount of a single tax payment is calculated on the basis of a threefold amount of land tax calculated on the basis of the area of ​​the land plot occupied by them except for cases stipulated by law.

At the same time, for retail trade enterprises, the procedure for calculating the minimum amount of a single tax payment remains on the basis of the fixed fixed tax payable by individual entrepreneurs carrying out a similar type of activity.

16. Starting from January 1, 2018, for payers of a single tax payment having land plots with a total area of ​​more than 1 hectare, an obligation was introduced to pay land tax from the whole area, while abolishing the procedure for calculating and paying a single tax payment for them, taking into account the minimum amount of a single tax payment .

The procedure for the calculation and payment of land tax by payers of a single tax payment after registration by the Ministry of Justice will be brought to the taxpayers in accordance with the established procedure.

17. For legal entities that carry out activity on the organization of lotteries (within the framework of this type of activity), the single tax payment rate is kept at a rate of 33 percent to the taxable base.

IV. For a fixed tax

1. The fixed tax rates for certain types of entrepreneurial activity from legal entities and individual entrepreneurs, fixed tax rates for individual entrepreneurs, are approved in accordance with Appendices Nos. 10 and 11 to the Resolution of the President of the Republic of Uzbekistan No. PP-3454 of December 29, 2017.

2. From January 1, 2018, a graduation rate for fixed tax from individual entrepreneurs was introduced for: the city of Tashkent; Nukus and cities of regional centers; other cities; other settlements.

3. Fixed tax rates for legal entities providing temporary storage of vehicles (except for temporary storage of vehicles in car parks of dehkan (food) markets) are established in the following amounts, for:

Tashkent city – 0.1 MWW per month for 1 m2;

Nukus and cities of regional centers – 0.06 MWW per month per 1 m2;

other cities – 0.05 MWW per month for 1 m2;

other settlements – 0,04 MWW per month for 1 m2.

Fixed tax rates for legal entities and individuals for children’s gaming machines are set in the following amounts, for:

Tashkent city – 3.0 MWW per month for 1 equipped place;

Nukus and cities of regional centers – 2.0 MWR per month for 1 equipped place;

other cities – 1.5 MWW per month for 1 equipped place;

other settlements – 1.0 MWW per month for 1 equipped place.

4. The fixed tax rates for individual entrepreneurs in 2018 are set in the following amounts:

 

Kind of activity

The rate of the fixed tax (in the multiple sizes to the minimum salary) in a month

city of Tashkent

Nukus, city-regional centers

Other cities

other settlements

1.

Retail:

       
 

food and non-food products

7,0

5,0

3,0

2,5

 

agricultural products in dehkan markets *

3,5

2,5

2,0

1,5

 

newspapers, magazines and books

3,5

2,0

1,5

0,5

2.

Domestic services

2,5

1,5

1,0

0,5

3.

Production and marketing of own products, incl. production and sale of national sweets and bakery products, as well as the production and sale of individual types of piece dishes without the organization of seats in the home or places specially designated by the decision of state authorities in the field

2,0

1,5

1,0

0,5

4.

Other activities

2,0

1,5

1,0

0,5

6

Services for the transport of goods by road:

 
 

for trucks with carrying capacity up to 3 tons

1,5

 

for trucks with a carrying capacity of up to 8 tons

2,0

 

for trucks with carrying capacity up to 12 tons

3,0

 

for trucks with a carrying capacity of more than 12 tons

3,5

5. The procedure has been retained in accordance with which fixed tax rates for all categories of fixed tax payers are determined on the basis of the minimum wage set at the beginning of the year as of January 1, 2018 (172,240 soums) and are not revised during the year when the size of the minimum wages.

6. Individuals who are invalids of Groups I and II, irrespective of the type of activity and place of their implementation, pay a fixed tax at a rate of 50 percent of the minimum monthly wage.

V. For Value Added Tax

The rate of value added tax remains at the rate of 20 percent.

VI. Under the excise tax

Excise tax rates on excisable goods produced in the Republic of Uzbekistan and excise tax on excisable goods imported to the territory of the Republic of Uzbekistan are approved in accordance with Appendices Nos. 12-1 and 12-2 to the Resolution of the President of the Republic of Uzbekistan No. PP- 3454.

VII. On the tax for the use of water resources

1. The tax rates for the use of water resources are approved in accordance with Appendix No. 13 to the Resolution of the President of the Republic of Uzbekistan No. PP-3454 of December 29, 2017.

2. For legal entities of all economic sectors (with the exception of those specified in paragraphs 2-4 of Appendix No. 13 to the Decree of the President of the Republic of Uzbekistan dated December 29, 2017 No. PP-3454) and for dehkan farms (legal entities and individuals), as well as for physical persons persons using water resources in the course of carrying out entrepreneurial activity the rate is set by surface water resources in the amount of 98.2 UZS per 1 cubic meter. meter and according to underground sources of water resources in the amount of 124.8 soums per 1 cubic meter. meter.

For organizations producing soft drinks, the tax rate for the use of water resources by surface and groundwater sources of water by the volume of water used for the production of soft drinks is set at 15,870 UZS per 1 cubic meter. meter, and for other purposes by surface water sources in the amount of 98.2 soums per 1 cubic meter. meter and according to underground sources of water resources in the amount of 124.8 soums per 1 cubic meter. meter.
 
 

At the same time, these enterprises pay a tax for the use of water resources regardless of the taxation system (generally established taxation or simplified procedure).

VIII. For taxes and special payments for subsoil users

a) on the tax for the use of subsoil.

The tax rates for the use of subsoil resources are approved in accordance with Appendix No. 14 to the Resolution of the President of the Republic of Uzbekistan No. PP-3454 of December 29, 2017.

Tax rates for subsoil use are kept at the level of rates in effect in 2017.

b) on bonuses.

The rates of the subscription bonus are approved in accordance with Appendix No. 15 – 1, the rates of the commercial discovery bonus are approved in accordance with Appendix No. 15-2 to the Resolution of the President of the Republic of Uzbekistan No. PP-3454 of December 29, 2017.

In 2018, the following are preserved:

minimum rates of the subscription bonus in the amount of 100 to 10 000 times the size of the minimum wage for the right to prospect and search for minerals;

the bonus rate of commercial detection in the amount of 0.1% to the taxable base;

c) for excess profits tax.

The excess profit tax rates are approved in accordance with Appendix No. 16 to the Resolution of the President of the Republic of Uzbekistan No. PP-3454 of December 29, 2017 and are kept at the level of rates in effect in 2017.

Since January 1, 2018, the estimated prices of the taxable base of the excess profit tax on copper for cathode, natural gas, polyethylene granules, cement and clinker have been indexed.

It was established that the amount of the taxable base (excluding value-added tax and excise tax) for the calculation of the excess profit tax on copper for cathode and natural gas in the period September-December 2017 is calculated in accordance with the norms established by the Decree of the President of the Republic of Uzbekistan of December 14, 2017 No. UP-5284 “On introducing changes and additions to some acts of the President of the Republic of Uzbekistan”.

IX. Under the property tax

1. The tax rate on property of legal entities is approved in accordance with Appendix No. 17 to the Resolution of the President of the Republic of Uzbekistan No. PP-3454 of December 29, 2017.

The base rate of property tax is maintained at the level of 2017 at a rate of 5 percent.

For equipment not installed in the regulatory period and construction objects not completed in the regulatory period, the property tax is paid at a double rate, unless otherwise provided by law.

2. Personal property tax rates for individuals are approved in accordance with Appendix No. 18 to the Resolution of the President of the Republic of Uzbekistan No. PP-3454 of December 29, 2017.

3. From January 1, 2018, property tax rates for individuals are set to the cadastral value of the property (in 2017, to the inventory value of the property):

for residential buildings and apartments, dacha buildings (with the exception of a total area of ​​more than 200 m2), other buildings, premises and facilities – at a rate of 0.2 percent (in 2017 – 1.7%);

for residential buildings and apartments located in cities with a total area of:

– over 200 m2 to 500 m2 – at a rate of 0.25 percent (in 2017 – 2.1%);

– over 500 m2 – at a rate of 0.35 percent (in 2017 – 2.9 percent);

for residential houses and apartments, country houses located in other settlements with a total area of ​​over 200 m2 – at a rate of 0.25 percent (in 2017 – 2.1%).

At the same time, the procedure for determining the cadastral value of immovable property of individuals for tax purposes after approval by the Cabinet of Ministers will be brought to the taxpayers in accordance with the established procedure.

 

4. From 1 January 2018:

in order to calculate the tax on the property of individuals, the cadastral value of the property is determined on the basis of cadastral documents, but not lower than 42,000.0 thousand UZS;

conditional value of property (in the absence of cadastral value, determined by the bodies for assessing the property of individuals to collect tax) in. Tashkent and Nukus, as well as in regional centers in the amount of 210 000.0 thousand soums, and in other cities and rural areas – in the amount of 90 000.0 thousand soums;

in order to prevent a sharp increase in the tax burden after switching to property taxation based on the cadastral value it is provided that the amount of the tax on the property of individuals calculated on the basis of the cadastral value can not exceed the amount of the tax accrued for 2017 by more than 1.2 times ;

the right of the Council of Ministers of the Republic of Karakalpakstan, the khokimiats of the regions and the city of Tashkent, districts and cities, in agreement with the respective Kengashs of People’s Deputies, taking into account the peculiarities of the regions and the place of carrying out activities, introduce decreasing and increasing coefficients from 0.7 to 1.3 to the established rates for tax on property of individuals and land tax from individuals.

On newly erected dwelling houses that are not registered in the established order in the bodies that carry out state registration of property rights, property tax from individuals is levied on the basis of the double value of the conditional value of the property.

In order to apply the benefits for property tax for a particular category of individuals provided for by law, the non-taxable area is set at 60 square meters of the total area.

X. For land tax

1. The land tax rates are approved in accordance with Appendix No. 19 to the Resolution of the President of the Republic of Uzbekistan No. PP-3454 of December 29, 2017.

Land tax rates for 2018 are indexed by 1.15 times.

To the rates given in Tables 7 and 8, depending on the location of land plots, coefficients are applied: around the city of Tashkent within a radius of 20 km – 1.30, the capital of the Republic of Karakalpakstan and regional centers within a radius of 15 km – 1.20, district centers Within a radius of 10 km – 1.15 and other cities within a radius of 5 km – 1.10.

 

The distance to the land is determined from the administrative boundaries of cities and regional centers along the roads. In cases where a land plot is located near two cities, a coefficient corresponding to a higher functional purpose of the city is adopted. The application of the coefficients specified in paragraphs 1 and 2 is carried out on the basis of information provided by bodies that carry out state registration of the right to land plots provided to relevant state tax authorities.

For land plots granted to individuals for entrepreneurial activities, the tax is levied at rates approved for legal entities.

Land tax from legal entities and individuals for non-residential premises in multi-storey residential buildings is calculated based on the area of ​​non-residential premises divided by the number of floors.

2. When calculating the land tax levied on individuals, the basic rates shown in Tables 5 and 6 apply to land plots within the established standards, and for land plots in excess of the established standards, the base rate is increased by a factor of 1.5.

At the same time, In order to calculate the land tax from individuals, the following standards of land are applied:

Tashkent, Nukus and cities of regional subordination – 0.06 hectares;

other settlements (excluding dekhkan farms) – 0.1 hectares.

3. For land plots occupied by objects of unfinished construction, land tax is paid at double rates, unless otherwise provided by law.

XI. On a single land tax

The single land tax rate for agricultural producers is approved in accordance with Appendix No. 20 to the Resolution of the President of the Republic of Uzbekistan No. PP-3454 of December 29, 2017.

For agricultural producers who pay a single land tax based on the normative value of agricultural land, the single land tax rate is maintained at 0.95 percent.

At the same time, the normative value of agricultural land for each economy is determined by the Uzbek State Scientific and Project Institute “Uzdaverlyloiha” of the State Committee of the Republic of Uzbekistan for land resources, geodesy, cartography and state cadastre.

 

XII. Local taxes and fees

In accordance with Annex No. 21 to the Decree of the President of the Republic of Uzbekistan No. PP-3454 of December 29, 2017, in 2018 the marginal rates of local taxes and fees are established in the following amounts:

1. The tax rates for consumption of gasoline, diesel fuel and gas are set in the following amounts:

for consumption of gasoline – 232.5 soums per 1 liter, 308 850 sum per 1 ton;

for consumption of diesel fuel – 232.5 UZS per 1 liter, 282 500 UZS per 1 ton;

for the consumption of liquefied gas – 230 UZS per 1 liter, 436 300 UZS per 1 ton;

for consumption of compressed gas – 305 soums per 1 cubic meter. meter.

At realization of gasoline, diesel fuel and liquefied gas through gasoline stations, the tax on consumption of gasoline, diesel fuel and liquefied gas is calculated at the rate of 1 liter, and in other cases at the rate of 1 ton.

2. The rates of these rates are unified throughout the territory of the Republic of Uzbekistan. The rates of gasoline, diesel and gasoline consumption taxes on gasoline and diesel fuel produced from customer-supplied raw materials are formed within retail prices for gasoline and diesel fuel, taking into account the tax on consumption of gasoline, diesel fuel and gas. Payers, the procedure for calculating and paying taxes on the consumption of gasoline, diesel and gas by the volume of gasoline and diesel fuel produced on a give-and-in basis from imported raw materials under the commission’s contracts are determined by the Ministry of Finance and the State Tax Committee of the Republic of Uzbekistan.

3. From January 1, 2018, a graduation rate for the collection of retail trade rights for certain types of goods for: Tashkent; Nukus and cities of regional centers; other cities; other settlements.

4. Rates of collection for the right to retail trade with certain types of goods (alcohol products and products made of precious metals and precious stones) for 2018 are set in the following amounts:

alcoholic products, including sale of alcohol products by public catering enterprises – in Tashkent city – 6 MWPP per month, in Nukus and cities of regional centers – 5 MWRP per month, other cities – 4 MWRPs per month and in other settlements – 3 MWRP per month;

products from precious metals and precious stones – in Tashkent city – 4 MWRPs per month, in Nukus and cities of regional centers – 3.5 MWW per month, other cities – 3 MWRPs per month and in other settlements – 2 MWRPs in month.

5. The rate of the fee for the right to provide paid services for the temporary storage of motor vehicles is maintained at the level of 2017.

At the same time, the amount of the collection in the city of Tashkent can not be less than 5 minimum wages, in the regional centers – 3 minimum wages, in other localities – 2 minimum monthly wages.

 

6. Rates of fees are fixed per month in multiples to the minimum wage set at the beginning of the year – as of January 1, 2018 (172 240 soums), and are not revised during the year with a change in the minimum wage.

XIII. Mandatory contributions to state trust funds

1. In connection with the consolidation of mandatory contributions to the off-budget Pension Fund, the Republican Road Fund and the off-budget Fund for the Development of the Material and Technical Base of Educational and Medical Institutions in a Single Payment – mandatory contributions to state trust funds, the rate in 2018 is set at 3.2 percent.

Benefits previously granted by legislation to business entities for compulsory deductions to the non-budgetary Fund for the reconstruction, overhaul and equipping of comprehensive schools, professional colleges, academic lyceums and medical institutions under the Ministry of Finance of the Republic of Uzbekistan extend to mandatory contributions to the non-budgetary Fund for the Development of the Material and Technical Base of Educational and medical institutions under the Ministry of Finance of the Republic of Uzbekistan.

2. Enterprises that have privileges under the Republican Road Fund and (or) the Fund for the Development of the Material and Technical Base of Educational and Medical Institutions pay obligatory contributions to state trust funds at a rate of 1.5% with full enrollment in an extrabudgetary Pension Fund.

3. Rates of levies and deductions to the Republican Road Fund under the Cabinet of Ministers of the Republic of Uzbekistan are approved in accordance with Annex No. 22 to Decree No. PP-3454 of the President of the Republic of Uzbekistan of December 29, 2017.

XIV. Mandatory payments to social funds

1. The rates of unified social payment are approved in accordance with Appendix No. 23 to the Resolution of the President of the Republic of Uzbekistan No. PP-3454 of December 29, 2017.

2. The unified social payment rate in force for micro-firms and small enterprises, as well as farms at a rate of 15 percent to the taxable base, was maintained in 2017.

At the same time, for this category of enterprises, the amount of the single social payment is distributed in the following amounts:

Extrabudgetary Pension Fund

14,8%

State Employment Promotion Fund

0,1%

Council of the Federation of Trade Unions of Uzbekistan

0,1%

For the remaining payers, the single social payment rate is maintained at the level of 2017 at a rate of 25 percent. At the same time, the amount of the single social payment is distributed in the following amounts:

Extrabudgetary Pension Fund

24,8%

State Employment Promotion Fund

0,1%

Council of the Federation of Trade Unions of Uzbekistan

0,1%

3. The rate of compulsory insurance contributions of citizens to the extrabudgetary Pension Fund is maintained at the level of 2017 and is set at 8 percent.

XV. Selected issues of taxation

1. As of January 1, 2018, it is stipulated that for legal entities rendering cargo transportation services, regardless of the taxation system, the aggregate amount of taxes and mandatory contributions paid to them in state trust funds per one unit of the vehicle should not be less than the amount of a fixed tax paid by individual entrepreneurs for this type of activity. In this case it is determined that additionally calculated amount is included in the account of corporate income tax or single tax payment.

2. For legal entities, the current procedure for the taxation of income from the leasing of immovable property is retained, according to which these revenues are determined on the basis of the rent payment amount established by the agreement, but not lower than the minimum lease rates for the use of public real estate.

2. The minimum rental rates for individuals leasing property are approved in accordance with Appendix No. 25 to the Resolution of the President of the Republic of Uzbekistan No. PP-3454 dated December 29, 2017 and are established in the following amounts:

for living quarters, the rate for 1 m2 of the total area – in the city of Tashkent –
4 500 soums per month, in the city of Nukus and cities of regional centers – 3 000 soums per month and in other settlements – 1 500 soums per month;

for uninhabited premises, the rate for 1 m2 of the total area – in Tashkent city – 9 000 soums per month, in the city of Nukus and cities of regional centers – 6 000 soums per month and in other settlements – 3 000 soums per month;

for a car (a motor vehicle intended for the carriage of passengers, luggage and having no more than 8 seats for landing, not including the driver’s seat) for 1 vehicle – 330,000 soums per month;

for minibuses, buses and trucks for 1 vehicle – 645 000 soums per month.

3. The fee for the use of the subscriber number paid by legal entities providing mobile communication services (cellular companies) is set at 4,000 soums per month, with the allocation of funds in accordance with Appendix No. 26 to the Decree of the President of the Republic of Uzbekistan of December 29, 2017 No. PP- 3454.

4. The minimum amount of tax debt for foreclosure on property of taxpayers is established in accordance with Appendix No. 27 to the Decree of the President of the Republic of Uzbekistan No. PP-3454 of December 29, 2017.

The minimum amount of tax debt for foreclosure on the property of taxpayers is determined on the basis of the minimum wage set at the beginning of the year – as of January 1, 2018 (172,240 soums), and is not revised during the year with a change in the minimum wage.

XVI. On benefits

1. Until 1 January 2023, the following shall be exempt:

budgetary organizations that receive additional income from sources specified in Articles 60-63 of the Budget Code of the Republic of Uzbekistan, from all types of levied taxes, fees to the Republican Road Fund and mandatory contributions to state trust funds;

foreign higher educational institutions accredited in the Republic of Uzbekistan from payment of all types of taxes and mandatory contributions to state trust funds in the framework of their educational activities carried out in the Republic of Uzbekistan, as well as unified social payment and personal income tax in part of the remuneration fund of foreign workers.

2. Withdrawn from April 1, 2018 privileges granted:

enterprises included in the localization programs, including on projects being implemented;

on the profit tax of legal entities, property tax and single tax payment to exporting enterprises depending on the share of exports.

XVII. Changes and additions made since January 1, 2018 in some decisions of the President and the Government of the Republic of Uzbekistan Since January 1, 2018, in accordance with Appendix No. 33 to the Resolution of the President of the Republic of Uzbekistan dated December 29, 2017 No. PP-3454, some changes and additions were made to some decisions President and Government of the Republic of Uzbekistan. In particular:
 

– Paragraph 2 of paragraph 3 of the Resolution of the President of the Republic of Uzbekistan of June 7, 2017 No. PP-3042 “On expanding the powers of state authorities in the field and increasing their responsibility for the formation of local budget revenues” is stated in the following wording:

“Unused targeted social transfers at the end of the current fiscal year are subject to return to the appropriate higher budget”;

– Amendments were made to clause 4 of the State duty rates approved by the Resolution of the Cabinet of Ministers of 3 November 1994 No. 533 providing for the abolition of the special procedure for payment of the state duty for cars with a service life of not more than one year, with the setting for them of the rules foreseen for cars up to 3 years – 10% of the minimum wage for each horsepower for local production and 30% of the minimum wage for each horsepower for imported production;

– In connection with the change in the amount of mandatory monthly contributions transferred to individual accumulative pension accounts of citizens, from 1 to 2 percent of income subject to taxation on personal income, changes were made to:

a) Paragraph 2 of clause 2 of the Resolution of the Cabinet of Ministers of December 21, 2004 No. 595 “On measures to implement the Law of the Republic of Uzbekistan” On Accumulative Pensions for Citizens “;

b) item 32 of the Regulation on Innovation Center for Support of Development and Introduction of Information Technologies “Mirzo Ulugbek Innovation Center”, approved by the Resolution of the Cabinet of Ministers of August 15, 2017 No. 631.

 

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