New measures to improve the investment climate in Uzbekistan

During the Third Tashkent International Investment Forum held on May 2-3, 2024, the President of the Republic of Uzbekistan Shavkat Mirziyoyev announced a number of measures mainly aimed at enhancing the investment climate in the country, in particular:

• Aligning of the Law “On Investments” to international standards. It is expected that the legislation will be developed in accordance with the provisions, rules and standards of the World Trade Organization.
• 3 years exemption for foreign investors from taxes on dividends. According to the current tax legislation non-resident legal entities are required to pay 5% corporate income tax on dividends and non-resident individuals are not subject to tax until the end of 2028. The new exemption could potentially extend these exemptions.
• The International Commercial Court will become a part of Uzbekistan’s juridical system. This new court will begin functioning in the near future.
• Implementing new approaches to managing and facilitating the industrial zones. More conditions that are favorable for the investors will be created in order to facilitate high-tech projects; the management of industrial zones will expand the practice of attracting private operators, including experienced foreign companies; duration of special economic zones will be eliminated.
• Significant extension of a maximum land lease period. It is expected that the maximum land lease period for foreign investors will be doubled from 25 years to 49 years.

It should be noted that the implementation of the aforementioned measures is expected to involve amendments to the legislation of the Republic of Uzbekistan and the adoption of corresponding regulatory acts in the near future. It is expected that specific conditions, criteria, and other details of the changes announced by the President will be introduced shortly.

HOW CAN BEONE HELP YOU?

We will be happy to assist you with:

• The analysis of the applicability of the new regulatory provisions to your business
• Adapting the existing structure, current and planned operations based on legislative changes
• Preparing inquiries to governing bodies regarding the implementation of new legislative provisions that may require clarification
• Supporting your activities in Uzbekistan and providing professional assistance on any other matters