IT Park residents status of 52 IT companies were revoked

The number of IT companies that are IT Park residents is continuously growing. Still, there are IT Park residents who, for various reasons, lose this status and, accordingly, lose their right to tax benefits. Following the Resolution of the Cabinet of Ministers of July 15, 2019 No. 589, in respect of legal entities that violated the requirements of the Regulation, tax authorities apply measures to cancel benefits, with the restoration of obligations to pay them to the State Budget of the Republic of Uzbekistan in the prescribed manner.

As of October 16, 2020, the number of IT Park residents is 416. Of these, 52 IT companies will be deprived of their Resident status for failure to fulfil the obligations stipulated by the Agreement, namely, due to failure to provide an audit report and conduct activities in violation of the requirements of the Regulations.

Thus, under the Resolution of the Cabinet of Ministers, IT Park residents are obliged to conduct a mandatory audit once a year.

It should be noted that the responsibilities of IT Park Residents include:

-carry out exclusively types of activities in the field of information technology;

-provide the IT Park Direction with information on its activities quarterly;

-conduct an annual audit of financial and economic activities

-and send one copy of the audit report to the Direction;

-fulfilment of obligations arising from the Agreement on the conditions of action of the IT Park Resident with the Direction.

Failure to fulfil contractual obligations leads to the deprivation of the status of  IT Park resident.

So, according to the order of the Direction, 52 IT-companies were deprived of the status of IT Park resident, and information about them was sent to the tax authorities to take measures to cancel the benefits. Similarly, the tax authorities received information about 63 IT companies that were included in the Unified Register of IT Park residents, but for various reasons are no longer active residents.

It should be noted that according to the law, being in the status of an IT Park resident even for one day entails the company's obligation to conduct an audit and provide an opinion on the use or not use of benefits.