Political and Economic stability
First of all, Uzbekistan is political stability, confidence in tomorrow and consistency of reforms in all fields of public and political life. It's the state, where representatives of more than a hundred ethnic groups and dozens of religions live in peace and concord.
Uzbekistan managed to achieve and ensure:
- macroeconomic stability, the balance of the domestic and external sectors of the economy, the growth of currency savings;
- framework for maintaining steady high rates of annual economic growth by 8% at average, predominantly, thanks to internal factors;
-to reduce aggregate tax burden by almost 3 times.
- Favorable investment climate and tax policy
In Uzbekistan, a broad system of legal guarantees and benefits for foreign investors has been created, an integrated system of measures to stimulate the activities of enterprises with foreign investment has been developed.
Newly created microfirms and small enterprises in the sphere of industry (except for automobile gas filling compressor stations) located in the Yangiarik and Kushkupir districts of the Khorezm region are exempt from the payment of a single tax up to January 1, 2027. In other areas of the Khorezm region - until January 1, 2022.
From April 1, 2017 to January 1, 2022, legal entities of the Khorezm region specializing in the production of pharmaceutical products and drugs, electrical products, and finishing building materials are exempt from property tax, land tax, tax on improvement and development of social infrastructure, as well as mandatory transfers to public funds.
Unprecedented tax privileges are created for enterprises carrying out production activities in the territory of the recently established Free Economic Zone in the Khazarasp region initiated by the President of the Republic of Uzbekistan and registered as its participants, including exemption from virtually all taxes and customs duties levied on the territory of the republic:
- Land tax;
- income tax;
- property tax on legal entities;
- tax on improvement and development of social infrastructure;
- Single tax payment for micro-firms and small enterprises;
- Mandatory deductions to the Republican Road Fund and the off-budget Fund for the Development of the Material and Technical Base of Educational and Medical Institutions under the Ministry of Finance of the Republic of Uzbekistan
Privileges are granted for a period of 3 to 10 years, depending on the volume of investments made, including the equivalent:
from 300 thousand US dollars to 3 million US dollars - for a period of 3 years;
from 3 million US dollars to 5 million US dollars - for a period of 5 years;
from 5 million US dollars to 10 million US dollars - for a period of 7 years;
from 10 million US dollars and above - for a period of 10 years, with the application for the next 5 years of the income tax rate and a single tax payment of 50 percent below the current rates.
- Rich mineral and raw materials base and energy independence
Uzbekistan is one of the leading countries in the world by reserves of gold, uranium, copper, silver, lead, zinc, tungsten, rare metals, natural gas, coal and other minerals.
This is a country that has ensured its energy security for years.
Access to a wide range of raw materials maximizes the cost of production by significantly reducing the cost of transportation of raw materials and materials, provides an opportunity for in-depth processing with the production of products with high added value and a level of localization of more than 50%.
In Uzbekistan, more than 1,644 fields and perspective manifestations of mineral deposits have been identified, the country's total mineral and raw material potential is about 11 trillion US $.
An important factor is the relatively cheap cost of electricity and gas. Electricity produced in Uzbekistan is 4 times lower than the average price where it is paid by industrial consumers in developed countries.
Perspective directions of the Khorezm region:
Organization of production in the field of deep processing, storage and packaging of fruit and vegetable and agricultural products, textile, carpet, shoe and leather goods, environmentally safe chemical, pharmaceutical, food, electrical engineering, machine building and automobile production, construction materials and other industries;