The President signed a decree regarding the process of attracting investments in start-ups and other projects; Uzbekistan to attract a loan from ADB for construction of agro-logistics centers; The President signed a decree on the simplification and improvement of customs control; Exporters of Uzbekistan can get tax breaks; Insurance companies collect premiums worth 1.18 trillion soums; The President signed a decree on the legalization of prospecting.
The President signed a decree regarding the process of attracting investments in start-ups and other projects
President Shavkat Mirziyoyev signed a decree “On additional measures to improve the mechanisms for financing projects in the field of entrepreneurship and investment.”
Management and investment companies can be created in any form. Legal entities with a state share in the authorized capital cannot be founders of such companies.
The activities of management and investment companies are not subject to licensing. Relationships between all parties are governed solely by agreement. Investment companies are given the right to issue loans, including interest-free loans with or without collateral.
Uzbekistan to attract a loan from ADB for construction of agro-logistics centers
A draft decree of the President of Uzbekistan “On measures to implement the project “Development of the infrastructure of the value chain in the fruit-growing sector” with the participation of the Asian Development Bank” was published.
According to the document, the ADB can provide Uzbekistan with funds in the amount of US$197 million for implementation of this project. The total project cost is US$244.75 million.
The project envisages the construction of agro-logistic centers for processing, sorting, packing, storing and supplying consumers with fresh and processed fruits and vegetables. The project is being implemented in Andijan, Samarkand and Tashkent regions of the Republic of Uzbekistan.
The President signed a decree on the simplification and improvement of customs control
The document notes that there is a number of systemic problems that impede the formation of a favorable investment climate in the country and the development of entrepreneurial activity.
In this regard, it is planned to organize customs terminals, which will be built on the terms of public-private partnership, «single window» services, an Automated Risk Management System, “front offices” and the institute of authorized economic operators and mandatory video surveillance.
From December 1, 2018, «yellow» and «red» corridors are introduced, and from March 1, 2019 – «green» and «blue» corridors.
Exporters of Uzbekistan can get tax breaks
A draft resolution of the President of Uzbekistan “On measures to further stimulate the export potential of domestic producers” has been published for discussion. The document was developed in order to expand the country’s export potential, provide state support to exporting enterprises, and stimulate an increase in the production of competitive export products.
It proposes to provide tax breaks to legal entities with a share of exports in the total revenue from the sale of goods (works, services) more than 15 percent from 1 January 2019, including through a commissioner (attorney).
In particular, it is proposed to reduce the taxable base for income tax of legal entities in terms of profit attributable to the volume of sales of goods (works, services) for export, and the single tax payment, in terms of sales of goods (works, services) for export. Tax incentives do not apply to the export of commodities, as well as international transportation and transportation services through pipelines and gas pipelines.
Insurance companies collect premiums worth 1.18 trillion soums
According to the Ministry of Finance of Uzbekistan, the volume of insurance payments of companies amounted to 296.3 billion soums in the first nine months of 2018, which is 50% higher compared to the same period in 2017.
The total authorized capital of companies grew by 68% in the reporting period and amounted to 500.9 billion soums.
Investments of insurance companies in January-September 2018 exceeded 1.87 trillion soums, which is 29% higher compared to the same period of 2017. Insurers sent 957.1 billion soums to deposits (+ 47%) and securities – 672.7 billion soums (+ 8%).
The President signed a decree on the legalization of prospecting
The document states that in certain regions of the country there is an increase in social tensions and a worsening of the criminal situation, including the ongoing unauthorized mining of precious metals.
In order to create conditions for the development of prospecting as a type of business for the extraction of precious metals, ensuring employment, effective exploration of mineral resources, and increasing the production of gold and jewelry, mining of precious metals based on entrepreneurial risk is introduced from March 1, 2019.
The miners are exempt from paying all types of taxes and other obligatory payments (exception for the unified social payment) in terms of the activity of prospecting for the extraction of precious metals.