The social tax rate will be reduced to 1% for some entrepreneurs

The draft law of the Republic of Uzbekistan «On amendments and additions to some legislative acts of the Republic of Uzbekistan » has been submitted for discussion.

The draft prepared by the Ministry of Finance introduces amendments and additions to the Customs and Tax Codes.

As a result of the adoption of the proposed draft law:

• income from the provision of fee-paying sports sections, training courses and other educational services organized by students in the territory of higher education institutions, shall not be included in the total income of natural persons;
• the income tax rate for non-resident natural persons on the revenues from sources in the Republic of Uzbekistan will be set at 12 percent;
• imports of medical equipment and its spare parts, consumables for medical purposes will be exempted from value added tax;
• in order to increase women’s employment, a social tax rate of 1 percent will be established for enterprises in the register of labor-intensive rural areas;
• preferences on customs payments will only be granted in accordance with the customs code and other laws, and some tax and customs exemptions will be abolished.

According to the project, from 1 May 2022, tax and customs exemptions will not be applied to goods (services) purchased at the expense of funds (loans, credits) of international financial institutions and foreign government financial institutions financed or refinanced through commercial banks of the Republic of Uzbekistan.