September 9, 2014
Preferences for enterprises with foreign investments. 2
Exhibitions for textile industry executives. 3
Session of the Executive Council of the UN World Tourism Organization (UNWTO)3
investments
Preferences for enterprises with foreign investments
A complete system of tax privileges and preferences is created in Uzbekistan, with a view to encouraging domestic enterprises to manufacture more export-oriented goods. In particular, the export by producers of their own excise-liable output is not subject to the imposition of excise tax, with the exception of several product groups specified by the Cabinet of Ministers of the Republic of Uzbekistan. For enterprises-exporters (barring the sale of raw materials), the rates of profit tax and property tax are reduced depending on the portion of goods (works, services) of their own production they export for freely convertible currency. For example, if the share of their exports ranges from 15 per cent to 30 per cent, the rates are reduced by 30 per cent, and by 50 per cent – if this share is above 30 per cent. The same rates apply to unified tax payment intended for micro-firms and small enterprises.
An additional impetus has been given to the development of the textile sector’s export potential by a provision, according to which enterprises that sell 80 per cent (and over) of their output, including semi-finished products (such as yarn, fabrics, knitted linen and cotton-spinning waste products) for freely convertible currency, are exempt from property tax. This provision remains in effect till 1st January 2016. In addition, export customs duties were abolished for all product categories (works, services), as well as for export licensing.
In August 2011, new rates of duties were established for customs registration of exported goods. Actually, these rates were halved, on the average.
Much attention in the country is paid to enterprises with foreign investments, which transact export-import operations. In particular, Par. 9 of the 10th January 2012 Presidential Decree No УПП-4434 grants a series of privileges and preferences to them. Enterprises with foreign investments carry out their export-import operations independently, on condition that the Republic’s legislation is strictly observed. At the same time, the export by such enterprises of their own output is subject neither to licensing no to quotation. Moreover, enterprises with foreign investments have the right to import goods for their own production needs without any licence, in keeping with Uzbek law.
The Tax Code of the Republic of Uzbekistan and the Presidential Decree, “On additional measures to stimulate the attraction of foreign direct private investments” as of 11th April 2005 specify a procedure for applying tax breaks and privileges concerning the obligatory deductions to the Republican Road Fund for enterprises attracting foreign direct private investments.
Pursuant to the Tax Code of the Republic of Uzbekistan, enterprises, which operate in industries included in an approved list and attract foreign direct private investments, are granted exemption from tax on profit earned by legal entities, property tax, tax charged for the improvement of social infrastructure, unified tax payment and obligatory deductions to the Republican Road Fund, starting the date of their official registration. At such enterprises, the share of receipts from their production activity in industries included in the approved list should be no less than 60 per cent in the period under review.
The tax privileges are granted to such enterprises:
For 3 years – with the volume of foreign direct private investments ranging from US $300,000 to US $3 million inclusive;
For 5 years – with the volume of foreign direct private investments standing at up to US $10 million inclusive;
For 7 years – with the volume of foreign direct private investments exceeding US $10 million.
The privileges in question are applicable on condition that enterprises are based in all towns and rural populated areas nationwide, with the exception of the city of Tashkent and Tashkent province. Another condition is that foreign investors inject their direct private investments against no guarantee from the Republic of Uzbekistan. Moreover, the share of foreign investors in an enterprise’s charter capital should be in the form of freely convertible currency or new modern technological equipment, as well as on condition that no less than 50 per cent of the profit earned thanks to the indicated privileges during the entire period of their provision will be re-invested in the development of a given enterprise.
The right to use these privileges is granted only to enterprises that succeed in forming their charter capital (funds) within the term fixed by the legislation of the Republic of Uzbekistan. At the same time, the enterprise is entitled to apply the privileges during the period specified for the formation of its charter capital. If the foreign investor’s share in its charter capital falls below 33 per cent, with the volume of direct private investments remaining intact, when the enterprise enjoys the privileges, the latter remain valid.
(Source: «Business partner.uz» newspaper)
BUSINESS CLIMATE
Exhibitions for textile industry executives
Two exhibitions – ‘Textile Machinery and Engineering CAITME’ and ‘Textile Expo Uzbekistan’ – are due September 10 – 12 in the Uzexpocenter as a major specialized event for textile professionals.
The exhibitions are traditionally organized by the international exhibition company ITE Uzbekistan with support from the Ministry of Foreign Economic Relations, Investments and Trade of the Republic of Uzbekistan and the State Joint Stock Company O’zbekyengilsanoat.
The light industry of Uzbekistan ranks among the national economy’s fastest growing sectors. Privileges and preferences for enterprises have allowed them to boost manufacturing of both semi-finished goods including cotton yarn, fabrics and knitted fabric, and a wide range of ready garments meeting international standards, and potently promoted in foreign markets. In the coming years, the industry’s capacity is expected to grow, since enterprises are planning to triple the production output to 6.9 trillion soums in five years. Thus the high interest manifest by the world’s leading manufacturers of textile machinery and investors in the Uzbek market is fairly reasonable. They say they are willing to invest in the establishment of promising ventures. (Currency rates of CB from 09.09.2014 1$= 2355.69 soums)
Since their inception, exhibitions CAITME and Textile Expo Uzbekistan have turned into important beacons for attracting investment and new technologies to the local light industry. They stimulate business cooperation among related experts; they attract the foremost producers and consumers of equipment, technologies and materials. The unique concept allows bringing together consumers, producers and trading companies that represent all areas of the textile industry. Every year the visitors can spot a wide range of textile machinery in action, as along with a diversity of raw materials and accessories, fabrics and finished goods.
This year’s exhibition will undoubtedly help each specialist to find a textile component they need, ranging from equipment and technological provision of the production process to finished textile articles, facilitating the interlinking and complementarity of exhibition sections. The rich program of the textile forum will help to strengthen business ties and further promote the effective development of the light industry in Uzbekistan.
(Source: «Uzbekistan Today» newspaper)
Session of the Executive Council of the UN World Tourism Organization (UNWTO)
Secretary General of the UN World Tourism Organization: In a short period Uzbekistan has become a leading countrySource
On the eve of the greatest and dearest holiday – Independence Day – Secretary General of the UN World Tourism Organization (UNWTO) Taleb Rifai, gave an interview to the Information Agency “Jahon” in which he shared his views on the progress of our country’s success over the years of sovereignty and assessed the current state and prospects of cooperation of the international structure with Uzbekistan.
– Mr. Secretary-General, how do you evaluate attention paid to the development of the tourism sector in Uzbekistan?
– During my travels in Uzbekistan, I witnessed huge attention paid by the Government of the country and personally by President Islam Karimov to preservation and revitalization of cultural, historical and spiritual wealth of the Uzbek people.
I would like to underline the successful implementation of government programs in Uzbekistan to preserve and promote sights included in the UNESCO World Heritage List.
In Uzbekistan, there is great potential for further development of the tourism sector, especially taking into account that the country is located along the Great Silk Road. I am convinced that the rich culture and unique historical monuments such beautiful cities as Samarkand, Bukhara, Khiva and Tashkent, which are included in World Heritage List, will always attract tourists from all over the world.
In turn UNWTO is ready to continue to support the programs and measures aimed at further development of tourism in Uzbekistan.
– Your opinion on the state and prospects of cooperation between Uzbekistan and the UNWTO?
– Uzbekistan is a member of UNWTO since 1993. I am truly grateful and satisfied with very active participation of your country in our organization.
I want to express our gratitude to our Uzbek colleagues for their support of the joint program of the UNWTO and UNESCO’s “Strategy for the development of tourism corridors heritage of the Silk Road”, which, in our opinion, is designed to make a positive contribution to the development of the tourism sector in Uzbekistan. The program, which includes countries such as China, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan, is aimed at addressing issues of sustainable development, the promotion of local communities, conservation and management of cultural and historical heritage.
– During the 98th session of the UNWTO in Santyago de Compostela it was decided to hold the next session of the Executive Committee of the organization in the ancient Uzbek city of Samarkand. Please tell us about the expectations of the UNWTO from this event?
– We are very pleased that the city of Samarkand was unanimously approved as the venue for the 99th session of the Executive Committee of the UNWTO. It is symbolic that this event coincides with the 20th anniversary of the adoption of the Samarkand Declaration “On the revival of the Silk Road”, which calls for the revival of the legendary route of the rich cultural and tourist exchanges.
I am convinced that conducting of the 99th session of the UNWTO in this city and the celebration of the 20th anniversary of Samarkand Declaration “On the revival of the Great Silk Road” will serve to further increase awareness of the international community about Uzbekistan, its international role as the most important country in the center of the Great Silk Road with the growing tourism sector.
I and my colleagues from all member countries of the UNWTO look forward to conduct two events in Samarkand, which will allow all of us to get in touch again with the unique and wonderful historical, cultural and spiritual heritage of Uzbekistan and to witness its success in the period of independent development.
– Soon the people of Uzbekistan celebrates 23 years of independence. Your wishes to the people of Uzbekistan?
– During the years of independence Uzbekistan has made great strides. Your beautiful country and hospitable Uzbek people left me with a great impression.
Today, we see that the high rate of economic development, maintaining social and political stability make Uzbekistan attractive country for tourists from around the world.
On behalf of the World Tourism Organization, a specialized agency of the UN, and on my own behalf, I wish leadership of Uzbekistan and the Uzbek people best wishes on the occasion of 23 anniversary of national independence.
Over a relatively short period of Uzbekistan has become a leading country, offering the world a unique cultural heritage, which has a place in human history.
(Source: IA «Jahon»)
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