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    Uzbekistan

    Social tax for homeowners: A new way to calculate pension, Uzbekistan

    Social tax for homeowners: A new way to calculate pension, Uzbekistan

    In Uzbekistan, there have been recent changes to the legislation regarding personal household plots of land. Individuals who own such plots now have the choice to pay a social tax in order to have their pension officially recognized. This change is part of the government's efforts to reduce informal employment. The amendments to the legislation were signed by the president on June 16, Gazeta.uz reports. 

    According to the amendments in the Tax Code, individuals who own personal household plots of land, as well as their family members engaged in activities such as animal husbandry, greenhouse farming, poultry farming, rabbit breeding, beekeeping, fish farming, gardening, lemon cultivation, and floriculture on these plots, now have the option to voluntarily pay a social tax for the calculation of their pension.

    Previously, the payment of the social tax was permitted for individuals who had a land plot of 0.04 hectares, a significant number of cattle, or 50 poultry. However, now the payment is no longer dependent on the size of the household plot or the number of domestic animals and birds. As a result, the requirements regarding the size of the land plot and the number of animals have been removed from the law concerning subsidiary farming.

    According to the document, individuals who are employed by individual entrepreneurs will be required to pay a social tax of at least 1 base calculation amount, which is $28.77, per year for the purpose of calculating their pension for one year. Currently, this amount represents 50% of the base calculation amount per month,which is $14.38 or $87.18 per year, which is six times higher. The responsibility for paying the tax lies with the individual entrepreneur with whom the individuals have entered into an employment agreement.

     

    19.06.2023, 18:30   Comments (0)   1222
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