To stimulate employment and entrepreneurial activity, Uzbekistan enacted a law providing tax exemptions and reductions for businesses that contribute to job creation, the Legal Information channel on Telegram reports. This legislation, part of the broader initiative "20,000 entrepreneurs - 500,000 qualified specialists," is aimed at fostering economic growth and skill development across the nation, excluding the capital city, Tashkent.
The newly signed law introduces amendments to the Tax Code. Under these amendments, entrepreneurs participating in the specified program can benefit from deferred tax payments and reduced tax rates based on the number of new jobs they create. The specifics of the law include:
- Entrepreneurs who generate 51 to 100 new jobs are eligible for tax payment deferrals of up to three months.
- For those creating 101 to 200 jobs, the deferral period extends to six months.
- A significant milestone of more than 200 new jobs qualifies for a deferral of up to 12 months.
Furthermore, the law specifies reductions in property and land tax rates for legal entities engaged in the program, effective until January 1, 2025:
- A 50% reduction in the established tax rate for entities creating 51 to 100 jobs.
- A 75% reduction for those establishing 101 to 200 jobs.
- Complete exemption from these taxes for businesses generating more than 200 jobs.
This legislation became effective immediately upon its official publication.
In line with these tax incentives, a meeting chaired by President Shavkat Mirziyoyev in early August 2023 resolved that entrepreneurs would be relieved from submitting reports on land and property taxes. This decision aligns with a regulation adopted in July by the Uzbek government, detailing the procedure for applying tax and customs benefits and preferences under the "20,000 entrepreneurs - 500,000 qualified specialists" program.
By incentivizing job creation through tax benefits, Uzbekistan is taking a proactive approach to economic development. This initiative not only aims to reduce unemployment but also encourages the growth of skilled labour within the country.
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