Issue 2
PwC Uzbekistan
Legal newsletter is a brief analysis on latest legal developments, which covers a broad range of of topics on investment climate in Uzbekistan.
Draft of Сonstitutional amendments published for discussion
By the Resolution of the Oliy Majlis, the draft Constitutional Law of Uzbekistan on Amendments to the Constitution of Uzbekistan was submitted for public discussion. Draft includes more than 200 amendments to 64 articles of the Constitution, introduces 6 new articles and 16 new norms.
Public discussion will be completed on July 4. The final draft will be put to a nation-wide referendum.
The Senate has approved a Law on the management of state property
The draft law introduces a new division of the state property as republican and municipal property, establishes management principles and ownership criteria. Moreover, the draft law determines the powers of governmental authorities towards the state property.
The draft law is currently under consideration by the President of Uzbekistan.
On June 29 the President signed a Law on the procedure for withdrawal of land for public needs with compensation
The Law applies to land plots owned by individuals and legal entities on the right of possession, use and temporary use (lease).
It provides a list of circumstances under which land may be seized for state and public needs. The decision to demolish property in the event of a dispute over compensation is prohibited.
The Law will come into force in three months - September, 2022.
A Presidential Decree provides financial support measures for businesses
Starting from July 1, 2022 State Foundation for the Support of Businesses provides compensation to cover a certain part of the interest rate on a bank loan and lease.
Also the Foundation will provide guarantees for loans in commercial banks up to 50 percent (inclusive) of loans, the total amount of which does not exceed UZS 2.5 billion.
A Presidential Decree simplified implementation of investment projects in Special Economic Zones (SEZ)
The new Decree introduces new changes in governance and removes the requirement to obtain an approval from the Centre for Comprehensive Expertise on business plans or feasibility studies for investment projects in SEZ.
Starting from July 1, 2022 the right to lease land in SEZ can be used as a pledge to obtain a loan.
Online registration for a franchise agreement
The Cabinet of Ministers adopted new regulation, which simplifies the state registration of franchise agreements through online procedure.
Starting from July 1, 2022 franchise agreements can be registered in the Center of Public Services or Single Portal for Public Services.
Draft law on registration of crypto mining was published for discussion
The National Agency of Perspective Projects has prepared a draft law introducing the registration procedure of crypto mining activity.
The draft law provides that “miner” is a legal entity subject to mandatory registration. Mining activities are not subject to licensing and taxation.
On July 9 a public discussion will be completed for further discussion at the Oliy Majlis.
—————
As part of the global PwC network, PwC Uzbekistan provides a connected expertise across legal insight, business understanding, and technological innovation to help you bring your future into focus and uncover new opportunities.
We provide a range of legal services from initial investment support, employment and immigration issues to full scope support for complex M&A and joint venture transactions in Uzbekistan and abroad. We represent the interest of private and public companies in Uzbekistan, working across all sectors of the economy.
Our lawyers work independently and also as part of integrated teams alongside colleagues from the PwC Legal global network.
Contacts:
Abdulkhamid Muminov
Managing Partner, Tax and Legal Services
Jamshid Juraev
Partner, Tax and Legal Services
Fayzulla Khusankhodjaev
Senior manager, Legal Practice Leader
fayzullokhon.khusankhodjaev@pwc.com
© 2022 PwC. All rights reserved.