Tax Incentives Proposed to Take Effect Even Before Amendments to the Tax Code
The new draft law also limits penalties to the amount of tax debt and provides for the automatic lifting of restrictions on bank accounts
The Legislative Chamber of the Oliy Majlis adopted in the first reading on 27 October a draft law on the application of tax incentives for businesses. The document was presented by Akhadbek Khaydarov, Deputy Minister of Economy and Finance.
The amendments will allow entrepreneurs to use incentives immediately after the president’s decisions are adopted, even if the changes to the Tax Code have not yet been made. However, such changes must be formalised within the period of the incentives’ validity.
The draft law establishes incentives for the pharmaceutical industry, sericulture and textile manufacturing, private preschool education, large-scale real estate projects, social services, landscaping, and socially significant charity. Reduced tax rates are provided for certain enterprises in Karakalpakstan and regions classified under the fifth category of economic development.
A separate amendment addresses companies transitioning from turnover tax to the general taxation system with VAT and profit tax. The initiative aims to shorten the period between the decision to grant an incentive and its formalisation in the Tax Code.
