Some of the most notable legal developments in Uzbekistan in July 2022 were amendments to the Tax and Customs Codes, a new Law “On the Supply of Drinking Water and Wastewater Disposal”, and new rules for the expert examination of project and public procurement documents. The President also approved the Agreement on the Reciprocal Promotion and Protection of Investments between Uzbekistan and Belarus of 1 August 2019.
On 27 July 2022, the President signed a Law introducing amendments to the Tax and Customs Codes. The Law, among others, provides for the following changes:
(a) reduction of the rate of excise tax for mobile communication services from 15% to 10%;
(b) reduction of tax on personal income of individuals – non-residents received under employment and other civil contracts from 20% to 12% (except for dividends, interest, and freight income);
(c) exemption of antenna-mast constructions in rural areas and lands on which they are located from property tax and land tax respectively;
(d) from 1 April 2020 to 31 December 2024:
Changes in respect of special economic zones have been introduced into the Tax Code. It has, among others, been provided that a term for which participants of a special economic zone are exempted from income tax depends on the amount of their investments:
The exemption starts to apply from the date a relevant production (service provision) facility located within a zone is commissioned.
A Law “On the Supply of Drinking Water and Wastewater Disposal” has been adopted. It enters into force on 24 October 2022 and, among others, provides for the following:
The Law does not apply to the production and sale of packaged drinking water with the use of a trademark and a service mark.
Presidential Resolution No.PP-332 introduces Regulations that update existing procedures for the following:
(i) the development, comprehensive state expert examination, and assessment of pre-project documentation for specific investment and infrastructure projects (Annex 1 to the Resolution);
(ii) the comprehensive state expert examination of procurement documentation for tenders and terms of reference for specific public procurement procedures (Annex 2);
(iii) the comprehensive state expert examination and registration of specific purchase contracts, as concluded by state purchasers or at the expense of the state external debt (Annex 3).
The abovementioned expert examination is conducted by the Center for the Comprehensive Expert Examination of Import Contracts and Projects under the Ministry of Economic Development. Procedures provided in Regulation (i) generally apply to investment and infrastructure projects falling under one of the following categories:
The President has issued a Decree on approval of the Agreement on the Reciprocal Promotion and Protection of Investments between Uzbekistan and Belarus of 1 August 2019. The Agreement aims to create robust investment environment for investors from the contracting states and sets a regime under which each state undertakes to treat investors from the other state no less favorably than local investors.
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Kosta Legal Law Firm