FREE ECONOMIC ZONES
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For the purposes of formation of favorable conditions for attracting foreign and local investments for creation of modern high-tech productions, providing for the production of competitive products with high added value, as well as for complex and effective use of production and resource potential of the country’ s regions, 7 Free Economic Zones( FEZ) have been established by the Decrees of the President of the Republic of Uzbekistan, such as“ Navoi”( Navoi region),“ Angren”( Tashkent region),“ Jizzakh”( Jizzakh region),“ Urgut”( Samarkand region),“ Gijduvan”( Bukhara region),“ Qoqand”( Ferghana region) and“ Hazarasp”( Khorezm region).
The period of functioning of Free Economic Zones makes up 30 years with the possibility of subsequent extension. The participants of the FEZ will be exempt from paying a number of taxes, customs duties and mandatory payments for imported equipment and raw materials for production needs.
Special tax regime. Enterprises in Free economic zones are exempted from land tax, property tax, profit tax, tax on improvement and development of social infrastructure, single tax payment( for small businesses),
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as well as obligatory deductions to nonbudget funds. The above-mentioned privileges are granted for the period of 3- 10 years depending on the amount of investments made, including those equivalent to:- from 300 thousand US Dollars to 3 million US Dollars – for 3 years;- from 3 million US Dollars to 5 million US Dollars – for 5 years;- from 5 million US Dollars to 10 million US Dollars – for 7 years;- over 10 million US Dollars – for 10 years, while profit and uniform tax rates for the next five years are established at 50 percent below the current rates.
In respect of business entities registered in Free economic zones the acts of tax legislation of the Republic of Uzbekistan, worsening the situation of the taxpayer do not apply, with the exception of acts regulating the taxation of excisable goods.
Special custom s regim e. Enterprises registered in Free economic zones are exempted from customs payments for imported equipment as well as raw materials, materials and component products for production of products for export for the entire period of free industrial economic zone functioning.
Uzbekistan profile | January- 2017