Business Expenses

NAVOI FREE INDUSTRIAL AND ECONOMIC ZONE

The Free Industrial Economic Zone "Navoi" was created in 2008 at a venue of 564 hectares of land next to Navoi, which is one of theindustrialized cities of Uzbekistan. FIEZ "Navoi" offers foreign investors a wide range of opportunities and profound competitive advantages in establishing industrial complexes with full cycle of production in all branches of economy. The priority is given to establishinga broad spectrum of industries in terms of manufacturing the high-tech products competitive in the global markets through introduction of modern highly productive equipment and technology, technological series and modules, as well as innovative technologiesin the following branches and spheres:

         production of electro-technical goods and telecommunication equipment;

         production of products of machinery, instrument making and component parts;

         production of medicinal agents and medical equipment;

         processing and packaging of foodstuff;

         production of plastic and polymeric goods.

Throughout the functioning period of the FIEZ "Navoi" a special legal regime is introduced which foresees a whole range of benefitsand preferences[1].

SPECIAL TAX REGIME

The enterprises in FIEZ "Navoi" are exempt from payment of land tax, property tax, income tax, betterment and development of socialinfrastructure tax, single tax payment (for small enterprises), as well as obligatory payments to the Republican Road Fund and theRepublican School Education Fund.

The said tax preferences shall be allocated in the following volumes of direct investments:

         from 3 million euro to 10 million euro - for a period of 7 years;

         from 10 million euro to 30 million euro - for a period of 10 years. In the following 5 years the income tax and single tax payment rates shall be fixed in the amount of 50 percent lower than the rates in force;

         over 30 million euro - for a period of 15 years. In the following 10 years the income tax and single tax payment rates shall befixed in the amount of 50 percent lower than the rates in force.

The acts of tax legislation of the Republic of Uzbekistan that worsen the situation of a taxpayer shall not be applied with regard toeconomic entities registered in the FIEZ "Navoi", excluding the acts that regulate the taxation of excisable goods.

SPECIAL CUSTOMS REGIME

The enterprises registered in the FIEZ "Navoi" shall be released from customs payments for imported equipment, as well as raw, materials and component parts for production of goods for exports for the entire period of operation of the free industrial economic zone.

The equipment, raw, materials and component parts for production of goods for export imported into the territory of FIEZ "Navoi" bypartakers of the free industrial economic zone irrespective of the country of origin shall be cleared based on the customs regime of thefree industrial economic zone. Meanwhile, the customs payments shall not be applied to the commodities imported for productionneeds (excluding customs clearance duties) and the measures of economic policy.

SPECIAL CURRENCY REGIME

The economic entities registered in the FIEZ "Navoi" shall be allowed in the limits of its territory to undertake settlements and payments in foreign currency in line with agreements and contracts concluded between them, as well as pay in free convertible currencythe supplies of commodities, works and services on the part of economic resident subjects of the Republic of Uzbekistan.

VISA REGIME

The participants of economic activity and members of their families, foreign nationals and non-residents employed in the limits of theFIEZ "Navoi" shall enjoy the simplified regime of entry, exit, stay and employment.

The issuance and extension of validity terms of visa documents, temporary registration in the Republic of Uzbekistan, as well as permission to employ foreign workforce and work permit to the participants of the FIEZ "Navoi" shall be undertaken with levying no stateduties and other payments.

The entry visas to foreign nationals employed in the territory of the FIEZ "Navoi" shall be issued based on written request of the Directorate of the FIEZ "Navoi" to be filed to the Ministry of Foreign Affairs of the Republic of Uzbekistan and to be considered duringan established order, but no more than two business days since the date of application. If another order of issuance of visas, the morefavorable than is foreseen by this Statute, is established by the Republic of Uzbekistan for nationals of certain states, then the morefavorable regime shall be applied to such nationals.


[1]It can be learnt in detail about special tax and customs regime from the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan of April 23, 2009 120. And about simplified regime of entry, departure, stay and employment of non-residents and stateless persons in the territory of FIEZ "Navoi" can be learnt from the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan of April 9, 2009 104.

MFERITMEDEF InternationalInternational Business CenterGov.uzPress ServiceOliy MajlisUzASARIO