The key facts

  • Decree UP-243 was signed on November 10; it covers projects worth $50 million or more in New Tashkent and special zones in the regions
  • Companies are exempt from property tax and land tax for 20 years; the profit tax on leasing and selling facilities is 1% for a term of 5 to 15 years depending on the investment volume
  • Until 2040, dividends from projects reinvested in Uzbekistan are exempt from taxes; services of foreign contractors are exempt from VAT

What the decree provides for

President Shavkat Mirziyoyev on November 10 signed a decree (UP-243) on measures to support large urban development projects with a high multiplier effect in the city of New Tashkent and the regions. The document is aimed at supporting projects worth $50 million or more and removing administrative and bureaucratic barriers to their implementation, and it is also expected to increase the investment appeal and tourism potential of the regions where such projects are carried out.

The

In New Tashkent and other special zones listed in the annex to the decree, a special legal regime — a

Tax incentives for investors

Under the regime, built on the principle of

Additional preferences

General contractors and chief design organizations are exempt from VAT when paying for services purchased from foreign individuals and legal entities that do not operate in the country. In addition, until January 1, 2040, dividends received by investors under urban development projects are exempt from taxation, provided they are reinvested in the territory of Uzbekistan. It was previously reported that the Pakistani developer IMARAT Group plans to take part in projects in New Tashkent.