Tashkent, Uzbekistan (UzDaily.com) -- A training on taxation for microfinance institutions (MFIs) of Uzbekistan, was held on 27 March. The training was organized by the joint project of the Central Bank of the Republic of Uzbekistan and the United Nations Development Programme Support to Microfinance Sector Development, GTZ Assistance to Microfinance Sector Development in Central Asia project and National Association of Microfinance Organizations and Credit Unions (NAMOCU).

The recent tax system reform, which was backed by the development and adoption of the new revision of Tax Code supported by UNDP, has brought about substantial changes in the individual and corporate taxation. Specific changes have been occurring in terms of Value Added Tax (VAT), tax privileges, land and property tax, as well as compulsory tax deductions. In addition, various initiatives have been undertaken to avoid misinterpretation and promote accurate understanding of the norms and provisions of the new revision of Tax Code.

In order to ensure an accurate compliance of MFIs with the requirements of tax legislation, it is crucial to conduct timely awareness building initiatives, as well as to familiarize the microfinance professionals with the latest changes and new developments in the area of taxation. Realizing this, the UNDP, GTZ and NAMOCU have initiated the particular training, aimed at providing responses to the concern of MFIs related to taxation.

Particularly, the training familiarized the participants with the latest MFI related changes and additions in the Tax Code, the peculiarities of taxation of MFIs, the changes in tax filing, tax privileges granted to MFIs for their microfinance activity, as well as the format of financial reporting submitted to the revenue service. Besides, the trainers have paid a particular attention to the order of tax checks of MFIs, financial sanctions for violation of tax legislation, and the specifics of off-site control.

The representatives of MFIs also received valuable information on the changes in terms of tax on development of social infrastructure, land, water resources usage, compulsory tax deductions, and corporate income tax. The training was held in an dynamic and interactive manner, and the trainers focused on case studies and discussions on the actual issues related to taxation of MFIs. The organizers are confident that the acquired knowledge and skills will assist the management and staff of MFIs in accurate and timely compliance with the norms and provisions of tax legislation, at a minimum cost.