End of Tax Exemptions for Export-Oriented Firms in Industrial Zones
Recently, changes have been made to export benefits in Uzbekistan, aligning them with the regulations of the World Trade Organization (WTO). Previously, companies in small industrial zones enjoyed a four-year tax exemption if they exported at least 30% of their goods. However, with the recent decree signed by President Shavkat Mirziyoyev on December 27, these incentives have been modified.
One significant change is that profits from foreign sales will now be fully taxed, eliminating the previous tax exemptions for companies in small industrial zones in Tashkent. Additionally, the rule extending the period of tax benefits for exporters has been abolished, meaning that companies will no longer receive additional tax breaks for exporting a certain percentage of their products.
Moreover, exemptions for importing equipment in silk production are now conditional on companies using the saved funds to purchase additional equipment within two years of importing the qualifying equipment. These changes come as Uzbekistan moves closer to finalizing its accession to the WTO, with bilateral negotiations already completed with 15 countries by 2024.
Despite these adjustments, President Mirziyoyev assured entrepreneurs during a meeting on December 20 that the government will continue to support businesses and create favorable conditions for their operations. As Uzbekistan nears its entry into the WTO, the aim is to ensure that the country’s trade policies are in line with international standards while still promoting economic growth and development.
