Entrepreneurs will be divided into 3 categories and tax will be determined accordingly – president

In Uzbekistan, business entities will be divided into categories according to their turnover, and tax will be determined accordingly.  This was stated today, 22 August, by President Shavkat Mirziyoyev of Uzbekistan at a meeting with entrepreneurs.

The head of state announced initiatives in 5 areas to support the business representatives.

The first direction is to divide enterprises into categories and define a special approach to support them.

In this case, enterprises will be divided into categories according to their annual turnover.  These are:

• up to 1 billion soms - micro business;
• up to 10 billion soms - small business;
• Up to 100 billion soms - for the medium business category.

On this basis, a single 4 percent tax rate will be introduced for micro-enterprises from 1 January 2023 to replace the existing 4-25 percent sales tax rate.

At the same time, the existing 1 and 2 interest rates for entrepreneurs in remote areas and special categories will be maintained, or if they voluntarily pay 20-30 million som per year, they will be exempt from the obligation to keep accounting and submit it to the tax authorities.

The second category, that is, enterprises with a turnover of more than 1 billion som, which have passed to the general regime of payment of taxes, pay 2 times less than the income tax within one year.

“These opportunities will create a relief for 370,000 entrepreneurs and give them a big incentive”, - Shavkat Mirziyoyev says.