乌兹别克营商指南-英-36页_23mb

Introduction and Overview

The guide provides practical guidance for foreign investors on legal and tax aspects of starting and operating a business in Uzbekistan, aiming to help avoid common pitfalls. Uzbekistan offers opportunities in key sectors with a dynamic economy. Key areas covered include legal presence options, tax rules, employment regulations, banking, currency, and entry requirements. Users should seek comprehensive professional advice before engaging in significant transactions.

Legal Presence Options

Foreign investors can establish a presence through several legal forms:

• Joint Stock Companies (JSCs): Separate legal entity with shareholders not personally liable; minimum charter capital varies by activity.
• Limited Liability Companies (LLCs): Separate legal entity with participants not liable beyond their contributions; no minimum capital, but some activities may require licensing.
• Representative Offices (ROs): Not a legal entity; must be accredited with specific limits on activities to avoid penalties.
• Branches: No specific regulations for registration, but authorities often refuse recognition for foreign companies.

Establishing entities requires registration with authorities, including the One-Stop Shop, with timelines typically 2 business days for complete documentation.

Time, Entry, and Visa Requirements

• Time Zone: Uzbekistan is 5 hours ahead of GMT; specific time differences are listed.
• Entry Requirements: Foreign nationals generally need visas, except for citizens from certain countries (e.g., USA, EU members) and crew members; visa processing varies.
• Visa Types: Business, investment (for foreign investment shareholders), and work visas are available, with investment visas valid for 3 years and possible extension; work permits require employer confirmation.

Tax Overview:

• Personal Income Tax (PIT): Flat rate of 12% for residents on worldwide income; 12% for non-residents on Uzbek source income, except dividends (5%) and interest (20%). Deductions and exemptions apply, such as for real property or foreign dividends during a transition period.
• Corporate Income Tax (CIT): Standard rate of 15%; higher for banks and specific sectors (20%). Investment deductions and loss carryforwards available; digital economy companies taxed at 7.5%. Revenue tax is an alternative for low-turnover entities at 4%.
• Value Added Tax (VAT): Standard rate 12%; zero-rated for exports, international transport, and utility services.
• Other Taxes: Social tax (12% or 25% for state-funded organizations), property tax based on cadastral value, excise tax on specific goods like oil and alcohol, and transfer pricing rules for controlled transactions.

Other Regulatory Areas

• Employment Regulations: New labor code effective April 30, 2023, emphasizes employee rights; work permits and confirmations required, with exceptions for accredited ROs and specific treaties.
• Banking Regulations: All banking operations must be licensed by the Central Bank; foreign institutions can operate under specific conditions.
• Currency Regulations: Transactions within Uzbekistan must use soum; cross-border transactions can use any currency, subject to registration.

EY Services and Contact Information

EY offers services in assurance, tax, law, strategy, and transactions for business operations and compliance in Uzbekistan. Contacts include:

• Tax Services: Dilovar Mavlo nov (Tel: +998781406482, +998907883675, Email: Dilovar.Mavlo@uz.eY.com)
• Law Services: Dinara Tanaseva (Tel: +77272585960, Email: Dinara.S.Tanaseva@kz.eY.com)
• Other Services: Contact details for various service lines and the EY office in Tashkent.

Additional Documents

• Double Tax Treaties: List with withholding tax rates available.
• Preferential Tax Regimes: Countries eligible for special tax regimes under specific decree.

Users should consult EY or similar advisors for comprehensive guidance tailored to their business activities. Note: This summary is based on the document as of January 2023 and is for general guidance only.