Updates on VAT, land tax, and incentives announced
The President of Uzbekistan recently signed a decree introducing amendments and additions to certain presidential decrees, aiming to enhance tax regulations and exemptions for businesses in the country.
Under the new decree, business entities operating in districts classified as the fifth category will now pay property tax for legal entities and land tax at a reduced rate of 50% of the calculated amount. However, major taxpayers, permanent establishments, budget organizations, state-owned enterprises, and legal entities with significant government ownership are exempt from this tax reduction.
Starting from January 1, 2025, the exemption from land tax for lands used to establish orchards, vineyards, and mulberry plantations will no longer apply. Instead, the tax rate for these lands will be reduced by 50%.
Additionally, as of July 1, 2025, the value-added tax (VAT) exemption for passenger transportation services provided at unified tariffs will be removed.
Furthermore, until January 1, 2028, those involved in establishing new orchards will not have to pay VAT and customs duties on imported fruit seedlings, rootstocks, scions, mother materials, and equipment from abroad.
These changes in tax regulations are expected to promote economic growth and provide clarity on tax obligations for businesses in Uzbekistan.
