Free Economic Zones as an Important Factor for Attracting Investments and Development of the County’s Regions

Free Economic Zones as an Important Factor for Attracting Investments and Development of the County’s Regions

There are 14 free economic zones (FEZ) set up and operating in 10 regions of Uzbekistan today.
If initially the tax and legal regime of the first three economic zones had differed and they were “free industrial economic zones” , then, following the provisions of the Decree № УП-4853 of the President of the Republic of Uzbekistan dated October 26, 2016 “On additional measures on activating and expanding the activities of free economic zones” these zones were renamed into “Navoi”, “Angren” and Jizzakh: free economic zones respectively, and a single legal regime was established for them, while their tax and customs breaks and privileges were unified. Same privileges with the same terms and conditions have been awarded also to subsequently established free economic zones.
Thus, the legal regulation of free economic zones’ activities went along the road of their unification with certain specific features for each FEZ.

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Non-public Education Gets Government Support

Non-public Education Gets Government Support

Two normative acts, passed already at the beginning of the academic year in the field of non-public education services, turned into an important event for investors which carry out their activities in this sphere. Thus, the Resolution of the President of the Republic of Uzbekistan №ПП-3276 “On Measures on Further Development of Activities on Rendering Non-Public Educational Services” dated September 14, 2017 outlined the most important changes and priviliges in this area.

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Liberalization of foreign exchange policy has started in Uzbekistan.

Liberalization of foreign exchange policy has started in Uzbekistan.

The President of the Republic of Uzbekistan signed the Decree No. УП-5177 “On Priority Measures on the liberalization of foreign exchange policy” on the 2nd of September, 2017.
The main objective of this document is elimination of excessive administrative interference into foreign exchange regulation, as well as the system of benefits and preferences for individual branches of economy and economic entities in carrying out their foreign economic activities, which to date has predetermined the creation of unequal conditions for conducting business among the entities of entrepreneurship and the emergence of a parallel foreign exchange and exchange rate markets.

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Direct private foreign investment: benefits and preferences

Direct private foreign investment: benefits and preferences

An amendment was introduced into the List of branches of economy, which extended the benefits provided for direct foreign investments in compliance with the Decree No. УП–5094 signed by the President of the Republic of Uzbekistan on June 23, 2017.

A number of changes have been introduced into this Decree since 2005. The current version the document stipulates that enterprises attracting direct private foreign investments and specializing in the production of goods (rendering services) in the sectors of the economy identified in the List are exempt from paying corporate income tax, property tax, tax on the development of social infrastructure, a single tax payment for micro-firms and small enterprises, as well as effecting mandatory deductions into the Republican Road Fund. Those specified tax privileges are provided for under the following volumes of direct private foreign investments:

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The development of renewable energy: plans and prospects

The development of renewable energy: plans and prospects

By the Resolution of the President of the Republic of Uzbekistan № PP-3012 dated on 26.05.2017 was approved a Program of Measures for the Further Development of Renewable Energy, Improving Energy Efficiency in the Economy and Social Spheres for 2017-2021.

The development of renewable energy production in Uzbekistan (solar, wind and biogas, hydropower of small natural and artificial watercourses) and increasing energy efficiency is a matter of long-standing concern for the society. The fact that Uzbekistan should seriously focus on the development of solar energy was mentioned at the meeting of the Asian Solar Energy Forum in November 2013. As the calculations show, taking into account the high advancing rates of development of the manufacturing industry, the electricity needs of the country in 2030 will be increased by about 2 times against the current year and will amount to over 105 billion kWh. Therefore, one of the main objectives of reforming the economy of the republic is to increase the efficiency of using fuel and energy resources, as well as implementing a set of measures for the active use of renewable energy sources.

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