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Venture funds granted unprecedented benefits in Uzbekistan

23 January 2018 13:15 (UTC+04:00)
Venture funds granted unprecedented benefits in Uzbekistan

By Kamila Aliyeva

Uzbek President Shavkat Mirziyoyev exempted venture funds from all types of taxes and mandatory payments, except for a single social payment, until January 1, 2023.

This measure is stipulated by the state program on the implementation of the Action Strategy in the Year of Support of Active Business, Innovative Ideas and Technologies, signed by Mirziyoyev on January 22.

In addition, high-tech start-up projects, research institutions, innovation centers, design bureaus and organizations for the transfer of new technologies to domestic entrepreneurship are exempt from all types of taxes and mandatory payments.

It should be noted that today in the Uzbek legislation there are practically no norms regulating the development of this direction.

Therefore, the head of state also instructed to develop legal bases for the creation and development of venture funds and venture financing, mechanisms that stimulate the introduction of innovations and new technologies into the economy.

In general, the document provides for the development and liberalization of the economy through a gradual transition to a new model of innovative development based on advanced ideas, smart technologies and know-how.

Previously, it was announced that the entire tax system of Uzbekistan will be revised until July 1, 2018.

The decree of the Uzbek head of state provides for the introduction of a number of new measures aimed at stimulating entrepreneurial activity in terms of fiscal policy from January 1, 2018.

In particular, the concept of tax holidays, which are provided to conscientious taxpayers faced with temporary financial difficulties for a period of up to twenty four months from the date of the relevant decision, appeared in the country's legislation for the first time.

In addition, Uzbekistan introduces a modern form of control - tax monitoring, which provides for an extensive information exchange between tax authorities and conscientious taxpayers with the provision of comprehensive assistance in solving current tax issues.

Earlier, President of Uzbekistan Shavkat Mirziyoyev signed a decree “On measures to radically improve tax administration, increase tax collection and other compulsory payments.”

The document outlined the main areas of reforming the system of bodies of the state tax service – wide introduction of modern ICT, strengthening responsibility of officials for the timely provision of reliable information related to tax matters, developing efficient mechanisms for the prevention of tax offenses and increase of taxpayers’ legal culture.

These measures will be implemented with the aim to expand the tax base by restoring the activities of non-functioning enterprises and improving financial state of low-margin enterprises.

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Kamila Aliyeva is AzerNews’ staff journalist, follow her on Twitter: @Kami_Aliyeva

Follow us on Twitter @AzerNewsAz

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