Tashkent, Uzbekistan (UzDaily.com) - The Law "On Amendments and Additions to the Tax Code of the Republic of Uzbekistan" was signed by the President of Uzbekistan on 29 December 2021. The Law introduced a special rental tax for the extraction of minerals.

Payers of the special rental tax for the extraction of minerals are legal entities engaged in the extraction of precious, non-ferrous and radioactive metals, rare and rare earth elements and their separation from man-made mineral products, the extraction of hydrocarbons.

The rate of this tax is set at 25 percent of the tax base.

Foreign investors who are payers of this tax can keep tax records in US dollars.

Accounting for tax benefits is carried out through information systems and with the issuance of a special identification code.

New tax rates are set for tobacco and alcohol products.

At the same time, the following rates are set for cigarettes with a filter, without a filter, cigarettes, cigarillos (cigaritas), bidis, kreteks:

when importing - 360,000 soums / 1,000 pieces + 10 percent (previously it was 400,000 soums / 1,000 pieces + 10 percent);

in production - from 1 January 2022: 185,000 soums / 1,000 pieces + 10 percent, from 1 June 2022: 203,500 soums / 1,000 pieces + 10 percent (earlier from 1 October 2021: 185,000 soums / 1,000 pieces + 10 percent).

For vodka, cognac and other alcoholic beverages: 

when importing for 45,000 soums / 1 liter (previously for 50,000 soums / 1 liter);

in production (for 1 dal of finished products) from 1 January 2022 - 125,100 soums, from 1 June 2022 - 138,000 soums (earlier from 1 October 2021 - 125,100 soums).

Excise taxes on mobile services and sugar were left unchanged (15 and 20 percent, respectively).

The tax benefits establish that the following are not subject to taxation:

taxpayer’s income and wages allocated for educational loans received from banks for training in vocational and higher educational institutions;

rental income for students;

the amount of wages and other income of the taxpayer, up to 8 times the amount of basic estimated value, which will be used to pay:

membership fees to international organizations;

payments to non-state educational institutions for retraining and advanced training.

The tax on property of legal entities has been reduced from 2% to 1.5%, on objects, the construction of which is not completed within the standard time frame, from 4% to 3%.

Property owned by orphans and children left without parental care is exempt from taxation.

In the period from 1 September 2021 to 31 December 2021, catering establishments are exempt from paying land tax on legal entities and property tax of legal entities.

For individual entrepreneurs operating in regions of the republic (with the exception of the city of Tashkent), the established social tax rate is applied at the rate of 50 percent of basic estimated value from 1 January 2022 to 1 January  2023.