Tashkent, Uzbekistan (UzDaily.com) -- From 1 November 2022, profits from the sale of goods (services) for export are subject to taxation at a tax rate of 0%, regardless of the share of export income in total income. 

At the same time, a tax rate of 0% is not applied on profits received from the provision of services to non-residents of the Republic of Uzbekistan operating in Uzbekistan through permanent establishments from 1 January 2023. This was reported by the press service of the State Tax Committee.

The right to reduce the income tax rate by 50% is granted for the following categories of taxpayers:

a) to taxpayers of turnover tax who switched to paying income tax for the first time after 1 September 2022 - within one tax period following the year in which the taxpayer switched to paying tax, provided that in the tax period in which the reduced tax rate, the total income of the taxpayer did not exceed 10 billion soums.

At the same time, these taxpayers have the right to determine the tax base in a simplified manner in the amount of 25% of total income.

b) taxpayers whose total income during the current tax period for the first time exceeded 10 billion soums after 1 September 2022 - during the current tax period and the subsequent tax period, provided that in the tax periods in which the reduced tax rate is applied, the total income did not exceed 100 billion soums.

The reduced tax rate does not apply to taxpayers of tax for the use of subsoil and excise tax, as well as in the event of liquidation of the taxpayer, and (or) detection of facts of division (splitting) of income from the sale of goods (services) of the taxpayer between two or more business entities for the application of a reduced tax rates.

Taking into account the fact that stripping works carried out at mineral deposits are carried out for the future, they are transferred to a separate group of depreciation assets. It is provided that these expenses are deducted from the taxpayer’s total income in the form of depreciation deductions by applying the depreciation rate for this depreciable asset, but not more than 33% of the amount of accumulated expenses per year.

  From 2022, the net profit remaining at the disposal of a non-resident operating through a permanent establishment, after payment of tax, was treated as dividends and was subject to taxation at a tax rate of 10%.

Clarifications have been made providing that a non-resident operating through a permanent establishment is entitled to apply the reduced tax rate provided for by the international treaty of the Republic of Uzbekistan on income in the form of dividends. If the international treaties of the Republic of Uzbekistan on taxation of income in the form of dividends provide for several reduced tax rates, the smallest of them is applied.

From 1 January 2023, under a foreign trade contract for the purchase (sale) of equipment that envisages installation and (or) commissioning services and other similar services by a non-resident, if the cost of the services provided is not indicated separately, then the taxable income of a non-resident is determined based on the market value of such services (previously - 20% of the cost of equipment).

Changes have been made to the deadline for submitting to the tax authorities a certificate on the amount of advance tax payments. In particular, from 1 January 2023, the taxpayer has the right to submit this certificate by the 15th day (previously 10th day) of the first month of the next quarter, based on the expected amount of profit in the current quarter.