On additional measures to develop the service sector
In order to develop the service sector based on special approaches based on the specifics of the regions, provide business entities with financial resources and infrastructure, as well as introduce a favorable tax regime for them, the president signed a resolution “On additional measures to develop the service sector”
In particular, from April 1, 2022 to January 1, 2025 for business entities in the field of retail trade and catering, hotel services (accommodation), passenger and freight transportation, repair and maintenance of vehicles, computer services, repair of household appliances, agro - and veterinary services, as well as services provided in entertainment centers, the social tax rate is set at 1%.
This tax benefit is applied by business entities if, based on the results of the current reporting (tax) period, their income from the provision of services by type of activity is at least 60% of their total income.
If facts of concealment of the number of employees by business entities are revealed, this tax benefit is terminated with the application of financial sanctions established by law.
From January 1, 2022 to January 1, 2027 for shopping malls with an area of more than 5 thousand square meters. m and hotels (accommodation facilities) (including the land plots occupied by them), entrepreneurs are granted the rights to:
• to reduce the rates of land tax from legal entities and property tax of legal entities by 90%. At the same time, for facilities newly built before January 1, 2027 (including the land plots occupied by them), this benefit is applied for a period of 5 years from the month of their commissioning;
• when calculating income tax, to attribute the cost of buildings to deductible expenses in the form of depreciation within two years.
From April 1, 2022 to January 1, 2025, for business entities registered in the established tourist zones of districts and cities, and providing catering services, hotel (accommodation), retail, entertainment, tour operator and travel agency services in these territories, the following are established:
• turnover tax rate – 1%;
• tax on property of legal entities and land tax on legal entities for objects located in the specified territories and the land plot occupied by them - in the amount of 1% of the amount accrued for these types of taxes.
From January 1, 2022, a 10% excise tax rate on mobile services is set for mobile operators.
From April 1, 2022, legal entities are exempt from property tax and legal entities of antenna-mast metal structures located in rural areas, including structures installed on them and being an integral part of them, as well as land plots occupied by them from land tax.
From February 1, 2022 to January 1, 2025, technological equipment, materials, software and spare parts imported by telecommunications operators and providers that are not produced in Uzbekistan are exempted from customs duties, according to lists formed in the prescribed manner, as part of projects for the implementation of telecommunications infrastructure.
Also, responsible persons were instructed to allocate 500 billion soums allocated under programs for 2022 to finance projects in the provision of services to projects for the creation and repair of:
• family guest houses (up to 50 million soums);
• hostels (up to 1 billion soums);
• complexes of yurt camps (up to 300 million soums);
• car campings (up to 3 billion soums);
• complexes of eco-houses (up to 300 million soums);
• container towns (up to 600 million soums);
• camping camps (up to 60 million soums).
At the same time, commercial banks are allowed to allocate loans in the amount of up to 2 billion soums for one project at a rate of 14% to finance new projects in the service sector (with the exception of projects to develop the financial sector and replenish working capital in the service sector) from the repaid part of previously allocated loans in accordance with PP-4752 "On Measures to Support the Services Sector" based on the timing of the attracted resources.