1. LEGAL HEADLINES IN NOVEMBER 2022
- Starting from 5 November 2022, entry into force of the Law “On Tax Consulting Activities”, which sets forth a regulatory framework for the activities of individual tax consultants, as well as tax consultancy companies (See ZRU-787 dated 4 August 2022);
- Starting from 10 November 2022, entry into force of the Law “On State Civil Service”, which defines the status, rights, and obligations of public officials, powers of state authorities, as well as mechanisms for preventing corruption and conflicts of interest (See ZRU-788 dated 8 August 2022);
- Starting from 1 November 2022, when calculating income tax, exporting companies will apply a zero rate to income from the export of goods (services), regardless of their share in total income (previously – if the share of exports in total income is less than 15% when calculating income tax, this part of the proceeds would be taxed at a rate of 15%). (See UP-228 dated 30 September 2022);
- Starting from 1 November 2022, digital labeling became mandatory for 10 types of household appliances and medicines, which include water heating boilers, air conditioners, juicers, blenders, mixers, coffee grinders, meat grinders, all types of lamps, medicines in primary (inner) packaging, and agro-products (medicines in large packaging) (See PKM-148 dated 2 April 2022);
- Starting from 1 November 2022, preliminary registration of all types of state inspections and their results, as well as information about preventive measures of the state authorities, are required to be registered in the unified state control system. Any unregistered inspections are considered illegal (See PP-374 dated 13 September 2022);
- Starting from 1 November 2022, apartment management companies are required to be registered in the relevant state registry. In absence of such registration, such companies are no longer allowed to render their services (See PP-346 dated 4 August 2022).
2. REAL ESTATE REGISTRATION LAW
Newly adopted Law “On state registration of the real estate” No. ZRU-803 dated 28 November 2022 (enters into force provides for the detailed procedure for registration of the following types of real estate:
- Land plots;
- buildings, structures, including construction in progress;
- perennial plantations;
- enterprise as a property complex.
Registration of real estate is deemed as the state’s recognition of the emergence, transfer, restriction, and termination of owners' rights to real estate. The Cadastral Agency at the State Tax Committee of Uzbekistan is defined as the authorized authority responsible for handling registrations of real estate.
The following documents are considered as confirming the ownership rights:
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Documents issued from 1 August 2021
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Documents issued within the period of
1 July 1998 – 1 August 2021
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For registration of the rights for permanent use of land plots – decisions of relevant regional/city khokims (mayors) on alienation of land plots for the state or public needs for permanent use, on the provision for general use (for non-commercial purposes) to the owners of premises of apartment buildings on the right of permanent use of a land plot, on where the apartment building is located, as well as the land plot adjacent to the apartment building;
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For state registration of the right to lifelong inheritable possession of a land plot – decisions of competent municipalities on alienation of land plots, a notarized certificate of the right to inheritance, a state warrant (order) issued by the relevant regional/city khokims (mayors) on the basis of the acquisition of the right to auction;
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For state registration of the right to permanent possession, permanent and fixed-term (temporary) use of land plots – decisions of competent local municipalities on alienation of land plots to legal entities and individuals, a protocol on the results of auction;
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For registration of the ownership rights over land plots – a state warrant (order) issued by the relevant state authorities;
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For registration of the ownership rights over land plots – a state warrant (order) issued by the relevant state authorities;
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For registration of leasing rights over land plots – lease agreement;
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For registration of leasing rights over land plots – lease agreement.
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3. FORCE-MAJEURE CERTIFICATE
Under the newly adopted Resolution of the Cabinet of Ministers of Uzbekistan No. 625 dated 28 October 2022, the new set of rules for obtaining the force majeure certificate are approved.
The relevant state authority for issuance of such certificates for force majeure events in cross-border and international contracts is the Ministry of Investments and Foreign Trade of the Republic of Uzbekistan.
Under the new set of rules, the filing shall be accompanied by the following documents:
- Copies of contracts, their addendums and appendices;
- Documents confirming the quantum of performed obligations under contracts (bank transfers, receipts and/or other documents).
The filing will be reviewed within 13 business days from the date of receipt of the filing.
4. STEP-BY-STEP LABELING OF WATER AND NON-ALCOHOL PRODUCTS
Under the newly adopted Resolution of the Cabinet of Ministers of Uzbekistan No. 631 dated 1 November 2022, labeling of bottled water and non-alcohol (soft) drinks will be implemented on a step-by-step basis in 2023-2024.
Once effective, both local producers and importers will be required to label their products as follows:
- The first group (carbonated or non-carbonated water, drinks, as well as non-carbonated water, drinks, as well as non-fermented sweetened fruit and vegetable juices, except for grape) – from 1 July 2023;
- The second group (water and beverages in metal containers) – from 1 August 2024.
After the start of each phase, the sellers are given six months to sell off the remaining non-labeled drinks. Beverage companies will be required to sign contracts for the supply of necessary equipment at least three months before the respective phase starts. Additionally, beverage companies will be required to implement aggregated codes for consignments of goods, and importers will be required to indicate the aggregated code in the cargo declaration starting from July 2023.
5. CRYPTO-STORE – NEW RULES
Under the newly adopted Order of the Head of the National Agency of perspective projects No. 3395 dated 31 October 2022, activities of crypto stores will be regulated under the new set of rules.
Crypto store – is one of the types of duly licensed service providers in the field of crypto-assets turnover, which carries out operations for the purchase and/or sale of crypto-assets by providing customers with access to the electronic platform and/or to the trading facility.
Crypto stores are not allowed to carry out operations with minors and persons included in the list of persons involved or suspected of participating in terrorist activities or the proliferation of weapons of mass destruction, in accordance with the legislation on combating the legalization of proceeds from crime, the financing of terrorism and the financing of the proliferation of weapons of mass destruction.
6. CORPORATE LAW
Under the newly adopted Presidential Resolution No. PP-415 dated 8 November 2022, starting from 1 December 2022, the following requirements are no longer effective:
- Creation of internal audit service in LLC (except for state-owned LLCs and credit institutions) and state-owned JSCs;
- Registration of the foundation agreement of the shareholders on the establishment of LLC;
- notarization of a power of attorney issued to representatives of an LLC that is a legal entity to participate in a general meeting;
- Setting the reserve fund size when it is created in LLC at least 15% of the authorized fund.
Starting from 1 April 2023:
- non-monetary contributions to the charter fund of an LLC worth more than 10,000 BRC are evaluated by an appraisal organization and cannot exceed the appraised value;
- in the event of a merger, accession and change in the organizational and legal form, the rights and obligations of the enterprise are transferred to the reorganized legal entity, regardless of the indication of this in the deed of transfer.
