Business Expenses

TAXES AND DUES

taxes and dues

According to the Tax Code of Uzbekistan, the businesses can operate in general taxation scheme or simplified taxation scheme. General taxation scheme envisages 10 general taxes and local taxes including corporate tax, value added tax, property tax, social infrastructure development tax, water tax, land tax, and several mandatory dues to the social funds.

Taxation in the simplified scheme is offered primarily to the small businesses and sole entrepreneurs, as this scheme is distinct in thesimplicity of estimating and paying taxes, and single tax substitutes many different taxes and dues mandated by the general taxationscheme.

General taxation scheme as of January 1, 2012

General State Taxes and Other Dues

Taxable Base

Tax rate

Corporate profit tax

Difference between gross revenue and deductible expenses, taking into account the incentives and other deductibles.

9%

Individual income tax

Gross revenue net of exemptions

See, p. 8

Value Added Tax

Taxable sales of goods (works, services), excluding sales exempt from VAT outside the Republic of Uzbekistan.

20%

 

Physical volume of excisable goods taxed at the fixed rates, and/or

 

 

Value of sold excisable goods taxed at ad valorem rate in percentage,

 

Excise tax

excluding excise tax and VAT and/or

Cost of works for manufacturing excisable goods and cost of goods made on commission.

See, p. 18

Taxes and special payments for subsurface

Cost of mined finished product, computed using average weighted sale price

See, p. 16

users

in the reporting period.

Water use tax (companies of the sectors,

Volume of water used, per a cubic meter:

 

excluding power plants, utilities and

Ground sources

35.8 UZS

agricultural businesses).

Underground sources

45.5 UZS

Mandatory contributions to social funds:

 

 

Unified social payment

Amount of income disbursed

25%

Contributions of individuals to extra-

5.5%

budgetary Pension Fund

 

 

Mandatory payments to the National Road Fund

Net revenue of legal entities

1-2.5%

Mandatory contributions to the National Road Fund

Collections to the

National Road
Fund

Engine capacity of purchased and (or) temporary imported vehicles;

 

Entry and transit of vehicles of foreign countries

5-50%

Mandatory payments to exta-budgetary Pension Fund

Established taxation objects

1.6%

 

General State Taxes and Other Dues

Taxable Base

Tax rate

Mandatory contributions to extra-budgetary Fund of School Education

From the established taxation objects

0.5%

Stamp duty

For legally significant acts and (or) issuing of documents by authorized institutions and (or) officers

See, p. 39

Customs duties

Payers, procedures of assessment, payment, refund and collection of customs payments and the respective incentives are regulated by the customs legislation.

See, p. 22

Local taxes and other mandatory payments

Taxable base

Maximum rate

Property tax

Average annual residual value of fixed and intangible assets; Average annual cost of work in progress and uninstalled equipment; Average annual value of non-resident property.

3.5%*

Land tax

Total area of a land plot net of non-taxable land

According to the Annex 19 to the Resolution PP-1675 of the President of Uzbekistan dated 30.12.2011

Landscaping and social infrastructure development tax

Profit of a legal entity after corporate profit tax

8% of net profits

Individual consumption tax: Petrol, diesel fuel, per a liter Natural gas for vehicles, 1 kg

Physical volume of petrol, diesel fuel and natural gas sold to individuals for their motor vehicles.

200 UZS 200 UZS

Fees of retail trade of the following goods: Alcohol products, for one month of trade Jewelry and precious gems, for one month of trade

Determined by the local government and may not exceed the maximum rates established by the legislation Determined by the local government and may not exceed the maximum rates established by the legislation

5 MMW 3.5 MMW

Simplified tax treatment is applied to the eligible taxpayers and envisages use of special rules for assessment and payment of unifiedtax payment, unified land tax and fixed tax for selected types of business activities.

Simplified Taxation as of January 1, 2012

Tax

Taxable base

Tax Rate

Unified tax payment

Gross revenue

See, p. 17

Unified land tax

Value of taxable land plots established in accordance with the legislation

6% of normative value*


*) As for land plots occupied by public premises and courtyards, the assessment is based on the 2.0 ratio.

 

Single Tax Rate, as of January 1, 2012 *

 

Taxpayers

Tax rate, % of taxable base

Companies of all sectors included in paras. 2-7 B-F

6**

B

Companies engaged in manufacturing

5

C

Companies where development and implementation of computer software accounts for at least of 80% of the total sales of goods (works, services).

5

D

Agricultural companies, excluding agricultural producers subject to unified land tax.

6

E

Companies engaged in organization of mass entertaining shows through attraction of legal entities and individuals (including non-residents), having license for tour and concert activity.

30

Procurement and logistics organizations, brokerage offices (excluding those listed in para 7), as well as companies rendering mediatory services under commission agreement, contracts of agency and other agreements for intermediary services.

33***

F

Companies involved in brokerage activities at the stock market

13***

G

Companies, which rent out retail space (on the condition that their rental income accounts for more than 60% of their income) for sales of food and non-food items

30

H

Companies engaged in organizing lotteries

33

I

Public catering companies

10

J

Retail trade companies (excluding those listed in para H) located in:

 

 

Cities with population of 100 thousand and more

4

 

Other towns and villages

2

 

Remote and mountainous districts1

K

Wholesale trade companies (excluding those listed in para H)*

5

L

Wholesale and retail pharmaceutical organizations located in:

 

Cities with population of 100 thousand and more

3

 

Other towns and villages

2

 

Remote and mountainous districts

1

*) The companies paying single tax must comply the procedures, according to which, the single tax is paid at the set rates but no less than triple of the land tax estimated by the land they occupy.

**) Leasing companies - interest income on leasing .***) As interest to the remuneration (gross revenue) Source: Resolution PP-1675 of the President of Uzbekistan dated 30.12.2011

 

Mining tax as of January 1, 2012

Object of Taxation

Rate, % of taxable base

Object of taxation

Rate, % of taxable base

. Extraction of Main and accompanying minerals

Energy resources

 

Mining commodities:

 

Natural gas

30.0

fluorspar concentrate

21,2

Gas of underground opening

2.6

Graphite

8,0

Unstable gas condensate

20.0

Grey kaolin, secondary, raw

7,9

Oil

20.0

Quartz, feldspar

6,5

Coal

4.0

Glass inputs

3,0

Ferrous and rare metals:

 

Bentonite clays

4,8

Refined copper

8.1

Talc and talc stone

4,0

Molybdenum industrial product

4.0

Talc-magnesite

4,0

Lead concentrate

4.0

Mineral paints

5,7

Zink

4.0

wollastonite

4,0

Tungsten concentrate

10.4

Asbestos

4,0

Precious metals:

 

Basalt for production of mineral fiber

4,0

Gold

5.0

Barite concentrate

4,0

Silver

8.0

Non-ore building materials:

 

Raw precious, semi-precious stones

24.0

cement

3,5

Ferrous metals:

 

Blocks from natural facing stone

3,5

Iron

4.0

Marble aggregate

3,8

Mining and chemical resources:

 

Gypsum stone. gypsum

5,3

Rock salt

3.5

Claydite

3,5

Potassium salt

3.5

Inputs for bricks and tiles

3,5

Sodium sulphate

3.5

Gypsum and anhydrite

4,0

Phosphorite (to graphite)

5.0

Crushed stone

3,8

Carbonates (limestone, dolomite)

3.5

Building sand

4,0

Glauconite

3.5

Sand and gravel mixture

4,0

Mineral pigments

4.8

sandstone

3,5

Non-ore inputs for metallurgy:

 

Cockleshell

3,5

Fireproof clays

4.0

shales

3,5

Limestone and dolomite

4.0

Other widespread minerals (marls, argelites, amvrites, etc.)

3,5

 

 

Object of Taxation Rate, % of taxable base Object of taxation Rate, % of taxable base

Quartz and quartzite 6.5

 

Moulding sand 4,0

 

B. minerals extracted from manmade mineral elements

30% of the rate forextraction of the main

Source: Resolution PP-1675 of the President of Uzbekistan dated 30.12.2011.

Excise on excisable goods manufactured in Uzbekistan as of January 1, 2012

Commodity

Rate, percentage of the sold goods (UZS per unit) without excise and VAT

Ethyl alcohol (per 1 decilitre)

2636 soums

Wine (per 1 decilitre of finished product)

4981 soums

Brandy, vodka and other liquor products (per 1 decilitre of finished product)

21800 soums [1]

Beer (per 1 decilitre of finished product)

25876 soums

Cottonseed oil (per 1 ton): *

Food oil (except the oil used for production of Uzbekistan oil

729690 soums

Technical oil (unfit to be added to the food products with the acid figure above 0.3mg of KOH/g)

398090 soums

Cigarettes (per 1 thousand pieces):

With filter

10739 soums

Without filter

5183 soums

Jewelry

25%

Cars manufactured by General Motors Uzbekistan CJSC[2]

29%

Silver tableware

11%

Natural gas (except for natural gas sold to households) including exports ***

25%

Liquified gas sold by the producer companies (except volumes sold through Uztransgaz companies) including exports ***

26%

Petroleum products (per 1 ton)*:

gasoline Ai-80

40%, but at least 321430 soums

gasoline Ai-91, Ai-92, Ai-93

40%, but at least 353430 soums

gasoline Ai-95

40%, but at least 408890 soums

Diesel fuel

34%, but at least 273400 soums

EKO diesel fuel

34%, but at least 284250 soums

Jet kerosene

9%, but at least 50580 soums

 

Collections to the

Republican Road
Fund under the Ministry of Finance of Uzbekistan

 

Collections

Amount in USD

Entry and transit of foreign vehicles through the territory of Uzbekistan, per vehicle (except countries listed in Paragraphs B-E)

400

B

Entry and transit of truck or a bus of Tajikistan through the territory of Uzbekistan

70-130

C

Fees for entry and transit of the vehicles and buses of the KyrgyzRepublic through the territory of Uzbekistan*

300

D

Fees for entry of the trucks and buses of Kazakhstan into the territory of Uzbekistan except transit through the territory of Uzbekistan, per vehicle*

300

E

Fees for entry and transit of the vehicles of Turkmenistan through the territory of Uzbekistan

Trucks

Buses

Cars

50-150 25-100 30

*) If an international treaty of Uzbekistan sets forth diferent rules, then the provisions of the international treaty are applied. Source: Resolution PP-1675 of the President of Uzbekistan dated 30.12.2011.

mandatory contributions to the extrabudgetary Pension Fund and the Fund for Reconstruction, major Renovation, and Supplying Equipment to the Educational and Health Institutions under the ministry of Finance of Uzbekistan

 

Taxpayers

Object of taxation

Companies and institutions, which offer intermediary services for commission and based on other intermediary contracts

Commission, excluding VAT

Harvest procurement organizations

 

Sales excluding VAT

Lending and insurance companies

 

Income

Leasing companies

 

Interest income

Construction, assemblage, maintenance, design, and research institutions

Works executed in-house excluding VAT

Companies from other sectors of the economy

Sales of products (works, services) excluding VAT and excise

Source: Resolution PP-

[1]excise on cognac, vodka and other alcohol products with over 40% ethyl spirit content is USD 35,921 for 1 decaliter.

[2]Payers and procedures of excise tax on the cars manufactured by General Motors Uzbekistan, natural and liquified gas, precious metals, and gold jewelry sold in retail are set by the Ministry of Finance of Uzbekistan with approval of the State Tax Committee of Uzbekistan. Source: Resolution PP-1675of the President of Uzbekistan dated 30.12.2011.

MFERITMEDEF InternationalInternational Business CenterGov.uzPress ServiceOliy MajlisUzASARIO