What Benefits and Preferences Are Provided to Businesses Operating on the Territory of Free Economic Zones?
Benefits and preferences provided to enterprises operating on the territory of free economic zones in accordance with the Decree of the President of the Republic of Uzbekistan dated October 26, 2016 No. DP-4853:
- exemption from land tax, income tax, property tax for legal entities, tax on the improvement and development of social infrastructure, a single tax payment for micro and small enterprises, as well as from mandatory contributions to the Republican Road Fund, off-budget Fund for the Development of Logistical Base of Educational and Medical Institutions under the Ministry of Finance of the Republic of Uzbekistan;
- exemption from customs payments (except for customs clearance fees) for equipment, raw materials, materials and components imported for their own production needs, with the targeted use of the released funds for the creation of new ones, as well as modernization, reconstruction, technical and technological re-equipment, expansion of existing production facilities, construction of industrial buildings, purchase of raw materials and materials necessary for their own production needs, without the right to return the negative amount of value added tax arising from the export of products;
- exemption from customs duties (excluding customs clearance fees) for imported building materials that are not produced in the country and have a positive conclusion based on the results of a comprehensive examination of the list of goods of the State Unitary Enterprise ‘Center for Comprehensive Expertise of Projects and Import Contracts’ under the Ministry of Economic Development and Poverty Reduction of the Republic of Uzbekistan.
The following benefits and preferences are given from 3 to 10 years, depending on the amount of investment in the FEZ:
- investments in the amount of USD 300 thousand to USD 3 million - for a period of 3 years;
- investments in the amount of USD 3 million to USD 5 million - for a period of 5 years;
- investments in the amount of USD 5 million to USD 10 million - for a period of 7 years;
- investments in the amount of USD 10 million and more - for a period of 10 years with the application of income tax and single tax rates 50% lower than the current rates for the last 5 years;
- enterprises participating in the FEZ are exempted from paying customs duties (except for customs clearance fees) on raw materials, materials and components imported for the production of export-oriented products during the period of functioning of free economic zones;
- the government ensures guaranteed connection of the participants of free economic zones to engineering and communication networks, their timely connection to production sites.