Uzbek President Islam Karimov signed a resolution abolishing the tax on income received by companies on long-term bank deposits and securities of banks until 2011.

Uzbekistan has introduced several tax breaks aimed at expanding the resource base and increasing the capitalization of the country’s banks.

Income from dividends on shares of banks purchased after January 1, 2007 will be tax exempt for three years.

Income received by shareholders on the value of additional shares or an increase in part value of shares if retained earnings of prior years are used to increase charter capital is also tax exempt under a resolution passed in October 2006.

Interest income on bank deposits received by individuals has been tax exempt since 2004 and dividend income on shares of banks has been tax exempt since 2005 to 2010.

Uzbekistan has 28 banks, three of which are state banks and five with foreign capital.