Changes in Business Regulation in Uzbekistan. July 2022.

1. BUSINESSMEN’S PROTECTION RIGHTS IN A SINGLE ONLINE PORTAL

Following the adoption of the Resolution of the President “On the measures to implement an effective system of dialogue with business owners” No. 178 dated 27 July 2022, an electronic platform «Businessman’s virtual office» (hereinafter – the Portal) was introduced for the protection of entrepreneurs’ rights and interests which offers the following services for business holders:

• Round-the-clock reception for addressing business entities’ concerns and inquiries, and monitoring these processes;
• Identification and solution of existing problems that hinder business activities using online discussions and surveys;
• Collection of proposals from business entities to improve legislation;
• Connection to information systems to provide necessary services (including obtaining licenses and permits, credits, subsidies, compensations and guarantees, tax and customs administration).

The Portal started working on 1 August 2022.

2. E-COMMERCE

With the adoption of the Administrative Regulation “On the creation of favorable conditions for the further development of electronic commerce” approved by the Resolution of the Cabinet of Ministers No. 392 dated 20 July 2022, the procedures for operation of online trading platforms (hereinafter – E-trade platforms)[1] and Information Intermediaries[2] were reestablished in terms of contractual fulfillment issues:

• Operators of E-trade platforms now have a right to use an escrow system or third parties’ services to secure the performance of contractual obligations;
• The rules of the Information Intermediary may stipulate the need for participants of E-trade platforms to deposit money on their accounts before the conclusion of contracts (as compensation in case the parties fail to fulfill their contractual obligations);
• Any disputes arising from the performance of contractual obligations may be considered by the bodies of pre-trial dispute resolution with the operator of the E-trade platform.

3.  REAL ESTATE & RESIDENCE PERMIT

As per the Resolution of the Cabinet of Ministers No. 384 dated 13 July 2022, foreign citizens from the countries approved by the government (please see – ANNEX 1) will have a right to purchase new property under construction (except for land plots) without having to obtain a residence permit.

Furthermore, for real estate to be considered as “new property under construction”, it must fit in one of the following categories: 

• Objects, the construction of which has already begun, but not accepted for use;
• Objects for which there is a decision of the Khokim (City Mayor) on approval for use of the constructed building, structure, or residential building;
• Objects, where the ownership is based on a certificate for the use of this object with construction and installation work completed;
• Objects from the moment of acceptance for use of which no more than three years have passed.

Please note that the acquisition of such property shall not be a basis for obtaining permanent registration and residence permit.

ANNEX

4. TAX INCENTIVES                                       

In line with the President’s Decree No. 162 dated 13 July 2022, the duration terms for income tax exemptions to participants of special economic zones (SEZ) were introduced in the following way:

• for investments from USD 3 million to USD 5 million - 3 years;
• for investments from USD 5 million to USD 15 million - 5 years;
• for investments from USD 15 million or more - 10 years.

Please note that these terms are to be calculated from the date of acceptance of the object for exploitation.

5. EVALUATION & EXPERTISE OF THE INVESTMENT PROJECT’S DRAFTS

Adoption of the President’s Resolution No. 332 dated 25 July 2022 brought in the procedure and fees for examination of pre-project documentation of investment and infrastructure projects for public procurement and tenders:

Please note that such examination will be carried out with the pre-condition of 100% pre-payment.

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[1]Online trading platforms – an electronic system designed to enable its participants to perform electronic transactions and organize and conduct tenders or auctions.

[2] Information Intermediary – a legal entity that provides services related to the circulation of electronic documents and electronic messages in e-commerce (e.g., a bank, a telecom network provider, or auction organizers).

[3] BRV is a basic calculation value in Uzbekistan that is used in determining the amount of taxes, fees, and payments for public services. As of July 2022, it equals UZS 300,000 (approx. USD 28).