Issue 6
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.
Open dialogue with the President: new regulatory amendments
On August 22, entrepreneurs had an open dialogue with the President. The following initiatives, benefits, changes and innovations were announced as a result of the dialogue:
- VAT rate will be reduced to 12%
Starting from January 1, 2023 VAT rate will be reduced from 15% to 12%,
- New classification of companies
Companies will be divided into 3 groups depending on their annual turnover: microbusinesses (with annual turnover up to UZS 1 bln ), small businesses (with annual turnover up to UZS 10 bln), and medium businesses (with annual turnover up to UZS 100 bln). New tax rates will apply depending on company type.
- Decriminalization of trade liability
The President announced complete abolishment of criminal liability for violation of trade rules.
- Release of liability for entrepreneurs
3-year moratorium on new penalties and penal measures against entrepreneurs was introduced.
- Fees for applying to the court will be reduced
State fees for entrepreneurs applying to administrative courts will be reduced by half. In addition, the state fee will be set in a specific amount instead of a percentage of claim price.
- Extension of an appellation period
The time limit for appeal of the tax authorities decision will also be changed from 1 month to 3 years.
Protection of property rights is strengthened
The President signed a Decree on inviolability of property rights.
Starting from September 2022, among other things, it will be possible to revoke property allocation decisions only through a court decision.
Additionally, the Decree contains instructions to prepare proposals for asset securitisation (conversion of assets into freely tradable securities) until October 2022.
Unified database of copyright objects
The Cabinet of Ministers has approved the introduction of a single database of copyright objects. The database will collect and store indefinitely electronic copies of literary and audiovisual works, computer programmes, including operating systems and applications, etc.
The Intellectual Property Centre of the Ministry of Justice will be responsible for maintaining the database and its replenishment.
The document will enter into force in April, 2023.
Shares of 21 state enterprises will be offered on stock exchange
The Cabinet of Ministers adopted a Resolution on initial and secondary public offering of state shares in 21 companies on national and foreign stock exchanges.
The list includes such companies as JSC Uzbekistan Airways, JSC Uzbekneftegaz, JSC UzAuto Motors, JSC UzTransGaz, JSC Dori-Darmon, and etc.
Public offering is ensured by the Ministry of Finance and State Assets Management Agency and is planned for 2022-2023.
New regulations on crypto exchanges
The National Agency of Perspective Projects (NAPP) has approved the Rules for Trading on Crypto Exchanges. Residents of Uzbekistan may register one account upon provision of identification data and carry out all kinds of trades in crypto-assets for national currency on the electronic platform of the crypto-exchange.
In addition, the NAPP established licensing procedures for crypto service providers. According to the procedure, service providers must host servers in Uzbekistan and share requested information with the Agency.
The Central Bank proposed to introduce a “regulatory sandbox” to test financial services
According to the published draft regulation, a special legal regime will be introduced for testing new financial operations, technologies and services. In particular, emerging services that are unregulated or limited by the current legislation will be tested in “sandboxes”.
Applications and results of the tests will be submitted to the Central Bank.
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.