Starting January 1, 2025, Uzbekistan will reduce the profit tax rate for restaurants and cafes by 50%, a measure that will be in place until January 1, 2028. This tax relief, aimed at supporting the public catering sector, was formalized through a presidential decree signed on August 30, 2024.
This initiative is part of broader economic reforms discussed during the president’s open dialogue with entrepreneurs, which took place on August 20 in Nukus. The meeting focused on creating additional support mechanisms for businesses, with a special emphasis on fostering entrepreneurship in the country.
In addition to the tax reduction for restaurants and cafes, the decree introduces several other important changes. When it comes to the reimbursement of value-added tax (VAT) on export transactions, taxpayers will no longer be required to submit customs-stamped documents to tax authorities. Instead, the electronic exchange of information between customs and tax authorities will be sufficient to confirm the export of goods.
The decree also addresses the repatriation period for assets in contracts involving the import of equipment or components. If the contract specifies a delivery period exceeding 180 days, this period will now be recognized as the asset repatriation period for the transaction.
Moreover, the decree outlines steps to enhance support for small and medium-sized enterprises (SMEs). Starting November 1, 2024, all commercial banks and microfinance organizations will participate in government programs aimed at supporting SMEs. The refinancing of unsecured microloans, up to UZS 100mn ($7,920), allocated to small businesses under the comprehensive "Ongoing support for small business" program, will be allowed. The maximum microloan amount may also be increased to UZS 300mn ($23,761).
Additionally, measures will be introduced to ease prepayments for electricity and natural gas for entrepreneurs. Contractual limits on electricity and natural gas consumption will be raised, and while exceeding these limits will incur additional fees, these fees will be mitigated through newly adopted measures.
These initiatives are part of Uzbekistan’s ongoing efforts to create a more favorable business environment and stimulate economic growth by supporting entrepreneurship across the country.
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