Along with customs and tax benefits established for all enterprises of the Republic of Uzbekistan, there are a number of benefits provided to enterprises of the following sectors of the economy, attracting direct private foreign investment:
Products of the radio electronic industry and production of components for computers.
Building materials industry:
Industrial production of poultry meat and eggs.
Meat and dairy industry:
Chemical and pharmaceutical industry:
These enterprises are exempt from paying income tax (profit), property tax, social infrastructure development and landscaping tax, environmental tax, single tax for micro and small enterprises, as well as mandatory contributions to the Republican Road Fund.
The specified tax benefits are provided with the volume of direct private foreign investment:
from 300 thousand USD to 3 million USD – for a period of 3 years;
over 3 million USD to 10 million USD – for a period of 5 years;
over 10 million USD – for a period of 7 years.
At the same time, these tax benefits apply under the following conditions:
the location of these enterprises in the labor-surplus regions – the Republic of Karakalpakstan, Jizzakh, Kashkadarya, Syrdarya, Surkhandarya, Khorezm regions, as well as in rural areas of Navoi, Andijan, Namangan and Fergana regions;
implementation of foreign direct investment by foreign investors without provision of a guarantee of the Republic of Uzbekistan;
the share of foreign participants in the authorized capital of the enterprise must be at least 50 percent;
introducing private foreign direct investment after the state registration of these enterprises;
foreign investment in the form of freely convertible currencies or new modern technological equipment;
direction of income received as a result of provision of these benefits during the period of their use, to reinvest with the aim of further development of the enterprise.
In addition, from July 1, 2003 to January 1, 2009, industrial enterprises with foreign investments of the SJSC “Uzbekyengilsanoat” (now “Uztuqimachiliksanoat” Association, specializing in production of ready-made clothes (garments, knitwear and leather products), hosiery and footwear, are exempt from paying to the budget of all taxes and fees, except for the value added tax.
— In some cases, on the basis of concluded investment contracts, foreign investors may be provided with additional guarantees and rights protection measures when investing in:
— priority sectors ensuring sustainable economic growth, progressive structural changes in the country’s economy;
— in priority projects that ensure strengthening and expansion of the export potential of the republic, its integration into the world economic relations;
— in projects in the sphere of small and medium-sized businesses, implementation of which is aimed at processing raw materials, production of consumer goods and services, providing employment to the population.
Additional guarantees and protection measures for foreign investors may include the provision of guarantees by the Government of the Republic of Uzbekistan, assistance in financing investment projects, creation of a special tax and payment regime, implementation of state monitoring of project implementation and other measures in accordance with legislation.