101 companies have been stripped of their coveted IT Park resident status due to failure to meet their obligations. These companies once hailed as pioneers in Uzbekistan's burgeoning tech industry, have faced the consequence of non-compliance with regulations set forth by the Cabinet of Ministers Resolution No. 589, issued on July 15, 2019.
The IT Park resident status, which offers numerous benefits including tax incentives and a conducive environment for tech innovation, comes with a set of responsibilities outlined in the Agreement on the Terms of IT Park Resident Activity. However, since the dawn of 2024, a significant number of resident companies have faltered in fulfilling these obligations.
Among the key responsibilities incumbent upon IT Park residents are:
- Exclusive Operations: Residents are required to conduct their operations strictly in accordance with the business plan submitted to the authorities, aligning with the specified types of activities listed in the regulations.
- Reporting: Quarterly reports detailing the activities of the resident companies must be submitted to IT Park, ensuring transparency and accountability in their operations.
- Financial Compliance: An annual audit of financial and economic activities is mandatory for all residents, with the audit report to be furnished to IT Park for scrutiny.
- Adherence to Agreement Terms: Fulfilling all obligations outlined in the Agreement on the Terms of IT Park Resident Activity is paramount for maintaining resident status.
Failure to adhere to these obligations has resulted in the loss of resident status for the affected companies. Consequently, they will no longer benefit from the tax advantages provided by the IT Park initiative. Moreover, these companies will be subject to reinstated obligations for payment to the State Budget of the Republic of Uzbekistan in accordance with the prescribed regulations.
This move underscores the Uzbek government's commitment to upholding regulatory standards and fostering a culture of compliance within the burgeoning tech sector. While the revocation of resident status may serve as a setback for the affected companies, it sends a clear message about the importance of adherence to regulatory frameworks in Uzbekistan's rapidly evolving digital landscape.
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