Ministry of Finance and State Tax Committee: how best to establish a constructive dialogue with entrepreneurs?
Tashkent, Uzbekistan (UzDaily.com) -- In connection with incoming requests and proposals from professional organizations and entrepreneurs, voiced at meetings with government agencies and in the media, as well as raising their awareness of the measures taken on the issues they raise and involving them in further improvement of tax administration software products, the Ministry of Finance and the State Tax Committee report the following.
I. On the use of new automated information systems.
1. Software product "E-aktiv".
a) The involvement of business entities in the use of the program in 2022 will be carried out in stages. So, from 1 April 2022, the requirement for the mandatory use of the E-aktiv program will apply only to 4 categories of goods (cement, glass, wood and cotton).
Based on the results of using the program for the pilot 4 categories of goods, the list of goods from the State Tax Committee will gradually expand.
At the same time, the implementation of the program for all categories of goods is planned to be completed in the fourth quarter of 2023.
b) Together with representatives of taxpayers and experts, sectoral working groups will be created to complete the catalog of goods and services, determine their basic conventional units in the simplest and most accessible form by the end of 2022.
For non-use of the E-aktiv software product (with the exception of goods included in the category of pilot goods), as well as the indication of an identification code for products and services that does not correspond to the actually delivered product (service), liability measures will not be applied to taxpayers until 1 September 2022.
2. Automated system risk analysis of VAT payers.
a) in addition to the previously presented three-month period (from October to December 2021), until 1 January 2023, the application of the following signs (circumstances) of the tax risk of taxpayers is suspended:
- the identity of the head or the person performing the functions of financial management is not confirmed in the UNST;
- lack of own, rented or gratuitously used real estate;
- coincidence of the taxpayer’s address with the address of the nominal location (less than 18 square meters);
- existence of facts of untimely submission of tax reporting within the last 12 months;
- there are no employees or there are less than 4 employees.
These criteria will not be suspended for large taxpayers and those newly registered as VAT payers;
b) together with representatives of taxpayers and experts, working groups will be created to improve the signs (circumstances) of tax risk and provide practical assistance to taxpayers in their prevention.
II. For property tax.
In accordance with the Tax Code, from 1 January 2022, property tax is calculated taking into account the minimum cost per 1 square meters (as a tax base) established in absolute terms.
1. At the same time, recommendations were given to the territorial financial and tax authorities on submitting proposals to the Jokargy Kenes of the Republic of Karakalpakstan and the Kengashi of people’s deputies of the regions on the wider use of reducing coefficients.
2. In the Ministry of Finance, with the participation of representatives of the State Tax Committee, the Cadastre Agency, a meeting was held with professional associations of appraisers, at which the appraisers voiced the issues of independent valuation raised by taxpayers. As a result of the meeting, the following additional measures were taken:
a) the results of an independent assessment carried out by the taxpayer in 2020-2021 will be accepted to determine the tax base.
At the same time, taxpayers are granted the right to evaluate a separate building or structures that are part of a single property complex;
The Tax Code gives taxpayers the right to engage independent appraisers to assess the actual value of real estate objects if the actual cost of 1 square meter of an object is below the established minimum value. In such cases, the results of an independent assessment will be recognized as a tax base.
b) the procedure for determining the tax base is retained by analogy with the procedure for 2021 (the minimum cost of 1 sq.m does not apply) for water towers, reservoirs, sheds, gazebos, concrete platforms and walls (curbs) and other similar objects.
As we interact with appraisers, the list of real estate objects that are not subject to the minimum value will be supplemented.
III. Dialogue with the business community
To continue the dialogue with the business community on the measures taken and new software products, the Ministry of Finance and the State Tax Committee, together with professional organizations, will hold regular meetings with business entities, as well as discuss proposals and questions from entrepreneurs, including those received via telegram channels to the tax authorities.
The Public Council under the State Tax Committee will continue to work more actively and the issues considered at it, as well as their results, will be communicated to the public through the media.
The Ministry of Finance and the State Tax Committee reached an agreement to organize regular meetings with members of the Chamber of Commerce and Industry, the Chamber of Tax Consultants, the Chamber of Auditors of Uzbekistan and the National Association of Accountants and Auditors of Uzbekistan. The purpose of these meetings is open interaction and dialogue with business, the professional community and experts on issues of interest to them in the field of tax legislation.
Establishing a constructive dialogue will make it possible to identify issues that require more detailed explanation, as well as to develop proposals for further improvement of tax legislation.
Work will also continue to highlight innovations in tax legislation, as well as to clarify topical issues that arise in practice for taxpayers in the media and official telegram channels and pages on social networks.
Other interested persons are also invited to open dialogue.