Individuals’ penalties on property and land taxes to be waived
New Decree Announced to Stimulate Entrepreneurship and Relieve Tax Debts
In an effort to promote a thriving entrepreneurial environment, prevent excessive spending by the population in fulfilling tax obligations, and create additional job opportunities, a new presidential decree has been adopted. The decree, titled “On measures to further stimulate the formation of an active entrepreneurial environment, prevent excessive spending by the population in the fulfillment of tax obligations, and create additional jobs,” introduces several measures to relieve tax debts and penalties.
Effective from June 1, 2023, the following debts and penalties will be written off:
– Penalties accrued for unpaid property tax and land tax debts (excluding non-residential real estate) collected from individuals.
– Debts of individual entrepreneurs who have not been operating in the last 6 months on a fixed tax and social tax, as well as the amount of penalties and fines accrued on them.
– Penalties imposed for overdue receivables of economic entities on foreign trade operations.
Furthermore, all judicial and enforcement proceedings associated with the recovery of these tax debts, penalties, and fines will be terminated.
The decree also includes measures to ease tax regulations for specific groups. Until June 1, 2024, individuals using land plots without proper documents will have the calculation of their tax suspended. However, these individuals will be subject to a three times higher land tax rate during this period.
Additionally, farmers will have the opportunity to repay their water tax debt in equal installments within 12 months without any interest, starting from June 1, 2023.
For entrepreneurs specializing in greenhouse farming and owning a land area of more than 25 hectares, a procedure for the return of income tax will be implemented from July 1, 2023, to July 1, 2024. Under this procedure, income tax paid by these entrepreneurs will be returned based on the wages of their employees, subject to the following conditions:
– Employment of at least 1 employee per month for every 5 hectares of land.
– Monthly income from wages for each employee should be at least 1-fold minimum wage, which amounts to 980 thousand soums.
It is worth noting that business entities specialized in greenhouse activities should generate at least 60% of their total income at the end of the current reporting (tax) period from their greenhouse operations.
This new decree aims to support entrepreneurs and relieve their financial burdens, ultimately fostering a more vibrant entrepreneurial ecosystem and encouraging economic growth.
