Tashkent, Uzbekistan (UzDaily.com) -- The State Tax Committee continues to publish clarifications regarding the application of benefits indicated by Presidentialdecree No. UP-6029 "On additional measures to support the population, business entities, catering, trade and services to reduce the negative impact of the coronavirus pandemic" from 20 July 2020.

In particular, the Decree states that:

- individuals are exempted from paying tax on income received from the provision of real estate for rent;

- the procedure for applying, for tax purposes, the minimum rental rates for individuals who lease property (premises and motor vehicles).

How to apply the exemption for the cancellation of personal income tax and why are the minimum rental rates canceled?

According to the Decree of the President from 20 July 2020 No.UP-6029, from 1 July 2020 to  31December 2020, individuals are exempt from tax on income of individuals on income received from the provision of real estate for rent.

In accordance with the document, in the period from 1 July 2020 to 31 December 2020, with the help of the STC software product, the automatic accrual of personal income tax on income received from the presentation of property for rent will be suspended.

There is no need to visit the tax authorities for this.

If a legal entity leases property from an individual, then the personal income tax at the source of payment for the specified period will not be withheld, and in the tax reporting on personal income tax, the tax amount must be filled in in the section - benefits.

The procedure for applying the minimum rental rates for tax purposes to individuals who lease property (buildings and vehicles) has been suspended.

Now the contract between the landlord and the tenant is concluded on the basis of a voluntary agreement that determines the amount of rent.

The obligation to conclude lease agreements based on minimum rental rates is canceled until 31 December 2020.

Landlords, taking into account the provided tax benefits, were recommended to revise the amount of rent in order to reduce the amount of rent for 2020.

In this case, lease agreements can be revised in order to reduce the rent in real estate lease agreements concluded between an individual and an individual, as well as between an individual and a legal entity.

In the event that a legal entity rents property (buildings and vehicles) from an individual, on the basis of Article 388 of the Tax Code, tax agents keep records of income received from them by individuals in the tax period, applied by individuals at the source of payment of tax benefits, calculated and withheld tax in tax accounting registers.

Renewed lease agreements can be registered electronically through your personal account or by visiting the STI in accordance with the quarantine requirements. On the basis of the reissued agreements, the surplus fee calculated from the income tax can, upon his application, be returned to the bank account of an individual or sent to pay the land tax and property tax charged for the current year.