New Tax Benefits for Hospitality, Catering, and Tourism Industries Introduced by Government
Starting January 1, 2025, Uzbekistan is set to implement new tax incentives to boost the catering, hospitality, and tourism sectors. The government has announced that the corporate income tax rate for catering establishments will be slashed by 50% and will remain at that level until 2028. In addition, entrepreneurs operating in this industry will be eligible for VAT reimbursement from the national budget. The amount of reimbursement will be determined by the proportion of cashless transactions conducted by the businesses. If over 60% of the turnover is attributed to cashless payments, entrepreneurs can reclaim up to 40% of the VAT paid. For businesses with a lower percentage of cashless transactions, the reimbursement will be capped at 20%.
Furthermore, tax benefits will also be extended to the hotel industry and tour operators. These businesses will have the opportunity to recover 20% of the VAT they have paid.
The implementation of these new measures aims to promote the adoption of cashless transactions, provide support to critical sectors of the economy, and alleviate the financial strain on businesses. This initiative is expected to drive growth in the catering, hospitality, and tourism sectors, fostering economic development in Uzbekistan.
