Marketplace Sellers to Face 10% Tax Rate Increase in 2022
The president of Uzbekistan has recently approved amendments to the Tax Code and related legislative acts, outlining significant changes to tax rates and benefits for entrepreneurs as part of the main directions of tax and budget policy for 2025.
One of the key changes is the increase in the corporate income tax rate for taxpayers engaged in electronic trade of goods, works, or services from 7.5% to 10%.
Starting from January 1, several taxes will be abolished, including VAT exemptions on the sale of unused non-agricultural land plots, the double-rate land tax calculation for agricultural land in urban areas, and the excise tax on mobile communication services.
New tax exemptions and reductions have also been introduced. For example, taxpayers whose income from publishing and printing activities constitutes at least 90% of their total income will be exempt from corporate income tax for this type of activity until 2029. Entrepreneurs hiring low-income family members or students for professional training will pay a reduced social tax rate. Young individuals establishing mobile trading units along roads will be exempt from income taxes on profits from goods sold during their first six months of operation.
Residents of the Technology Park for Software Products and Information Technology will be exempt from all taxes (except VAT) until 2040. Furthermore, private educational institutions, foreign teachers, and specialists working in these institutions will benefit from various tax exemptions until 2030.
Additionally, tax benefits previously granted to support income from the export of goods and services will be abolished, and accompanying goods documents stamped to confirm customs border crossing will no longer be required.
Revised tax rates for land tax, water usage tax, and subsoil usage tax have also been implemented. A zero corporate income tax rate will apply to income generated from the sale of electricity to the general grid using renewable energy sources for a certain period.
It was also mentioned that excise rates on certain products and fixed annual turnover tax rates would undergo changes.
Overall, these amendments aim to create a more favorable environment for entrepreneurs and promote specific economic activities while ensuring compliance with tax regulations in Uzbekistan.
