Tashkent, Uzbekistan (UzDaily.com) - VAT in 2021

1.1. The procedure for calculating and paying tax is preserved, as well as a tax rate of 15%.

1.2. The range of enterprises paying VAT, regardless of the amount of revenue, is expanding due to:

stationary outlets for the retail sale of alcoholic beverages, including beer;

markets and shopping malls.

1.3. For taxpayers whose sales turnover of goods (services) does not exceed one billion soums per month, the tax period is set as a quarter.

1.4. Changes have been made to the procedure for applying privileges in the provision of services for the carriage of passengers by urban passenger transport and public passenger motor transport (with the exception of taxis, including route taxis).

The privilege is applied by carriers if the local government authorities have established a single tariff and transportation is carried out at this tariff

The procedure for applying benefits at the expense of funds from international financial institutions and foreign government financial organizations has been clarified.

Now, the turnover for the sale and import of goods (services) acquired through loans from international financial institutions and international loans from government organizations will be exempted, if their release is provided for by law.

Based on this, amendments have been made to Articles 243 and 246 of the Tax Code.

Excise tax in 2021

The procedure for calculating and paying excise tax is preserved.

Excise tax rates are established by the Tax Code (Articles 2891-2893). At the same time, when calculating the excise tax upon import, prior to the approval of the relevant decision of the Cabinet of Ministers, the TN VED codes are applied, operating in accordance with the presidential decree No. PP-3818.

In the absence of a commodity item in Articles 2891-2893, respectively, the excise tax on the missing commodity items is not charged.

The excise tax on 73 items was canceled, including on electrical products (refrigerators, air conditioners, washing machines), tractors and semi-trailers, food products (margarine, confectionery and other products), etc.

When using imported (imported) excisable goods sold to the end consumer (gasoline, diesel fuel, liquefied and compressed gas) for their own needs, taxpayers are the persons who import these goods for their own needs.

Natural wines (with the exception of bottled) sold by producers are not subject to taxation in tasting zones (places) organized along tourist routes.

Income tax in 2021

The procedure for calculating and paying income tax, as well as tax rates in effect in 2020, is preserved.

Starting from 1 January 2021, property received or acquired (created) at the expense of funds received in accordance with paragraphs 8, 9, 14, 15 and 17 of Article 304 of the Tax Code, as well as received or acquired (created) at the expense of funds released as a result of tax and customs benefits granted, are not recognized as depreciable assets and are not subject to depreciation.

The cost of the depreciable asset is expensed through depreciation charges calculated from the original cost without taking into account their revaluation.

The cost of depreciable assets, taking into account the previously carried out revaluation, held by the taxpayer according to the accounting data as of 1 January 2021, is the historical cost for tax purposes.

Starting from 1 January 2021, when a taxpayer performs a revaluation of depreciable assets in subsequent reporting (tax) periods, the result of such revaluation for tax purposes is not taken into account when calculating depreciation charges.

The calculation of advance payments by tax authorities on the basis of the previous reporting period is retained.

At the same time, the taxpayer has the right to submit to the tax authorities a certificate of the amount of advance payments by the 10th day of the first month of the next quarter, based on the expected amount of profit in the current quarter. Previously, this norm was provided for in the presidential decree No. UP-5978.

Personal income tax in 2021

The procedure for calculating and paying tax on personal income is preserved, as well as a tax rate of 12%.

For taxpayers paying tax in a fixed amount, the following is provided:

tax rates for this category of taxpayers are established by the Tax Code. At the same time, the size of the tax rates in effect in 2020 is preserved;

certain norms related to the application of these tax rates, which were provided for in the law on the budget for 2020, are transferred to the Tax Code;

Income of individuals from renting out property is taxed at a tax rate of 12%. The minimum rental rates for individuals leasing property for tax purposes are here;

the Kengashes of people's deputies of districts and cities retain the right to establish decreasing or increasing coefficients from 0.7 to 1.3 to the amounts of tax in fixed amounts for individual entrepreneurs, depending on the specifics of the place of business of an individual entrepreneur, as well as the seasonality of the activities carried out.

Tax from individuals who are in labor relations with an individual entrepreneur is calculated and withheld by tax agents - individual entrepreneurs - at the source of payment, when income is paid to the taxpayer.

Social tax in 2021

The procedure for calculating and paying social tax, as well as tax rates in effect in 2020 for legal entities in the amount of 12% and for budgetary organizations - 25%, are preserved.

For the following category of individuals, there are:

payment of tax in the amount of at least one size of the base calculated value per year for calculating the length of service is made:

a) on a voluntary basis:

self-employed citizens;

citizens of Uzbekistan working abroad for hire on the basis of an employment contract, as well as in trading houses, representative offices (including without the formation of a legal entity), organizations created (opened) in foreign states by state bodies and other organizations of the Republic of Uzbekistan.

b) without fail:

pupils of the school "Usta - shogird" - during the period of their work until reaching twenty-five years;

dehkan farms, as well as individuals employed in the dehkan farm, on a personal land plot with an area of at least 4 acres, or engaged in raising cattle or poultry at least 50 heads in this area. In this case, the head of the dekhkan farm pays the tax on a mandatory basis, and other members and the indicated individuals - on a voluntary basis;

the tax payment deadline for this category of individuals is set before December 1 of the reporting year. In this case, the amount of tax is calculated based on the size of the basic calculated value established on the day of payment.

For other individuals, the procedure for calculating and paying tax remains in effect in 2020.

Turnover tax in 2021

The procedure for calculating and paying value added tax is preserved.

The list of persons who are not subject to turnover tax is supplemented, taking into account the introduction of VAT payment without fail for a certain category of payers. The following persons are not entitled to apply value added tax:

stationary outlets for the retail sale of alcoholic beverages, including beer;

markets and shopping malls.

The tax rate for persons engaged in real estate activities is reduced from 25 to 13%.

For the rest of the category of taxpayers, the tax rates in effect in 2020 remain the same.

Property tax in 2021

The procedure for calculating and paying property tax for legal entities and individuals is preserved, as well as the base tax rate for legal entities at the rate of 2%.

The gradual increase of the reduced tax rate for legal entities to the base one continues by increasing the reduced tax rate established for the objects provided for in part four of Article 415 of the Tax Code from 0.2 to 0.4%.

A reduced tax rate for legal entities was introduced from 1 January 2020 in respect of objects for which tax incentives were previously granted. For individuals, the tax rates in effect in 2020 are indexed by 1.15 times.

This is due to the fact that for individuals the size of the cadastral value of objects of taxation (tax base), determined by the bodies carrying out state registration of rights to real estate in 2018, is preserved.

At the same time, in 2021 for individuals, the amount of tax calculated on the basis of the cadastral value determined in 2018 cannot exceed the amount of tax accrued for 2020 by more than 30%.

The tax exemption is canceled in part of the sanatorium-resort facilities located in the tourist areas.

At the same time, the Jokargy Kenes of the Republic of Karakalpakstan and the Kengashes of people's deputies of the regions have the right to establish a reduced tax rate or exemption from property tax in respect of land plots occupied by individual sanatorium-resort facilities located in tourist zones

Included in the object of taxation for the property tax of individuals is a parking lot, inextricably linked with an apartment building (taxed at a tax rate of 0.23% to the tax base).

This norm is of a clarifying nature, due to the fact that in practice a cadastral document is drawn up for a parking space located in the underground floors of apartment buildings, with the determination of the cadastral value on it.

For example, the cadastral value of a parking space is set at 12 million soums. A tax rate of 0.23% is applied to it - the amount of the annual tax on property of individuals for 1 parking space will be 27.6 thousand soums.

Now garages owned by individuals are subject to land and property taxes.

This rule will not apply:

on individuals who decided to arrange a place for their cars in the courtyard of their residential building;

for individuals who use the services of legal entities for the storage of vehicles (paid parking lots). In this case, the taxpayer is a legal entity.

Water use tax in 2021

The procedure for calculating and paying tax for the use of water resources is preserved.

Tax rates are set by the Tax Code, taking into account their indexation by 15%, and for certain sectors of the economy - by 30%.

At the same time, tax rates remain at the level of 2020 for public utilities, and in terms of the volume of water used for irrigating agricultural land and breeding (growing) fish, including dekhkan farms, a single tax rate is set at 40 soums per 1 cubic meter.

For power plants, the tax rate is aligned with the tax rate for utilities.

Water resources used from collector and drainage networks are not subject to taxation.

The procedure for determining the tax base for persons using water resources in agriculture has been changed, including in fish farming, providing that the authorized body in the field of water use and water consumption provides annually information on the expected volume of water resources used by them:

not later than 10 December of the current tax period - to legal entities using water resources in agriculture, including fish farming, to determine the tax base;

no later than 20 vof the year following the reporting year - to the tax authorities at the place of water use or water consumption to calculate the tax for dekhkan farms.

Fish farms engaged in fish farming in artificial reservoirs, the tax base is determined based on the difference in the volume of water taken from natural and artificial water bodies and back discharged into these water bodies, with the exception of the one discharged into the collector and drainage network.

In the absence of means of accounting for water resources and the impossibility of determining the actual volume of water resources used in agriculture, including in fish farming, the tax base is determined according to the standards for the consumption of water resources approved by the authorized body in the field of water use and water consumption.

If there are water metering devices, the tax rate established for the volume of water used for irrigating agricultural land and for breeding (growing) fish, including dekhkan farms, is applied taking into account a reduction factor of 0.7 to the volume of water used, determined on the basis of water measuring devices.

Taxpayers who use water to cool special units (turbines) in the production process determine the tax base based on the difference in the volumes of water taken from natural water bodies to cool turbines and discharged back into a natural water body. This norm is applied in the presence of reliable water metering or a permit for special water use.

A procedure has been introduced according to which taxpayers engaged in several types of activities for which various objects of taxation and (or) tax rates have been established are required to keep separate records for such types of activities and pay tax at the appropriate tax rates.

For example: the main activity of the taxpayer is trade, but he also has a car wash. In this case, the taxpayer keeps separate records for these types of activities and calculates the tax:

by the volume of water used for trading activities at a tax rate of 182 soums per 1 cubic meter. (surface sources of water resources) and 221 soums per 1 cubic meter (underground sources of water resources);

by the volume of water used for washing vehicles at a tax rate of 1,990 soums per 1 cubic meter.

Subsoil use tax in 2021

The procedure for calculating and paying tax for the use of subsoil is preserved.

A uniform tax rate of 5% is established, but not less than 7,500 sum / cubic meter, for the following types of minerals:

building sand,

Sand and gravel,

sandstones,

building crushed stone (carbonate rocks),

crushed stone (granites, porphyrites and shale rocks)

For the SE "Navoi Mining and Metallurgical Plant" and JSC "Almalyk Mining and Metallurgical Plant" tax rates on gold, silver, palladium and copper are set at 15%.

For other types of minerals, the tax rates in effect in 2020 remain the same.

Other taxes in 2021

The fee for jewelry made of gold sold in retail trade is kept in the amount of 1,000 (one thousand) soums per gram.

Canceled from 1 January 2021 for all business entities, regardless of ownership, an annual mandatory revaluation of fixed assets.

The period for applying a zero rate of customs duty has been extended when importing 20 types of goods into the country (excluding white and other sugar).

Land tax in 2021

The procedure for calculating and paying the land tax from legal entities and individuals, as well as the tax rate established for agricultural land in the amount of 0.95% to the standard value of agricultural land, is preserved.