Tashkent, Uzbekistan (UzDaily.com) -- On 5 May 2022, the Law of the Republic of Uzbekistan “On amendments and additions to the Tax Code of the Republic of Uzbekistan” No. ZRU-767 was adopted.

This Law introduced the following additions and changes to the Tax Code of the Republic of Uzbekistan:

1. According to the addition made to Article 75 of the Tax Code, legal entities that have a tax benefit in the form of a complete exemption from paying property tax and land tax from legal entities will pay 1% of the accrued amount of these taxes.

The introduction of this addendum will allow the cadastral and tax authorities to keep records of taxpayers who have been granted benefits in the form of a complete exemption from property and land taxes, as well as some legal entities for which cadastral documents have not been issued.

2. According to the amendment made to paragraph 7 of Article 317 of the Tax Code, funds donated to the Public Foundation for the Support of Children are deductible when determining the tax base for income tax.

3. According to the amendments made to articles 337 and 467 of the Tax Code, from July 1, 2022, taxpayers engaged in electronic trade in goods (works, services) were given the opportunity to pay income tax (7.5% instead of 15%) and tax on turnover (2% instead of 4%) at rates reduced by 50 percent of the established tax rate.

Earlier this benefit was provided only to taxpayers included in the National Register of Electronic Commerce Entities.

4. According to the amendment made in Article 380 of the Tax Code, for people with disabilities from childhood, as well as people with disabilities of groups I and II, the amount of non-taxable personal income tax increased from 1.41-fold (from 1 million 159 thousand soums) to 3 times the minimum wage (up to 2 million 466 thousand soums) for each month in which these incomes are received.

This benefit also applies to relationships that arose from March 1, 2022.

5. According to the amendment made in Article 428 of the second part of the Tax Code, the grace period for exemption from taxation of land plots on which new orchards, vineyards, and mulberry trees are planted has been increased from 3 to 5 years.

6. According to the amendment made in Article 483 of the Tax Code, the first paragraph of the third part and the ninth part, changes were made to the validity period of some temporary benefits, including:

Until December 31, 2022, the VAT exemption period for the import of vegetable oil, sunflower and flax seeds, and soybeans, as well as turnover for the production and (or) sale of vegetable oil (except cottonseed oil) is extended.

This benefit also applies to relationships that arose from May 1, 2022.

At the same time, until December 31, 2022, the exemption from VAT on the sale of meat (beef, lamb), these live animals and their products of slaughter, potatoes, as well as their import into the territory of Uzbekistan, continues.

This benefit also applies to relationships that arose from May 1, 2022.

7. Article 483 of the Tax Code was supplemented by the sixteenth part, according to which:

For the period from January 1, 202,2 to January 1, 2031, business entities in the areas of local industry, agriculture, and services in the Muynak region of the Republic of Karakalpakstan:

- pay income tax, turnover tax, social ta,x and personal income tax at tax rates of 1 percent;

- pay tax on property of legal entities, land tax on legal entities, and tax on the use of water resources at tax rates of 1 percent of the amount accrued for these taxes.

8. Article 483 of the Tax Code was supplemented by the seventeenth and eighteenth parts, in accordance with them:

Business entities exporting dyed fabric, dyed fabric, and finished garments and knitwear, from February 1, 2022, to January 1, 2025, pay social tax.

The relief provided by part seventeen of this article applies to taxpayers whose a rate of 1% revenue from the export of dyed linen, dyed fabric, and finished garments and knitwear is at least 80 percent of the revenue from the sale of all goods and services.