Banks entitled to tax exemptions for corporate income
The joint Resolution of the Ministry of Finance of the Republic of Uzbekistan, of the Management of the Central Bank of the Republic of Uzbekistan, and of the State Tax Committee, has established the Statute on the manners for the implementation of corporate income tax exemptions by commercial banks, in accordance with the share of long-term investment funds in the bank’s credit portfolio.
Accordance to the document, Uzbek commercial banks will be paying corporate income taxes until January 1, 2020, by differentiated rates. The corporate income tax rate will vary, depending on the percentage of long-term investment funds in credit portfolio.
In particular, if the amount of long-term investment funds in credit portfolio comprises:
- 35-40%, the rate shall be 80% of the fixed one.
- 40-50%, the rate shall be 75% of the fixed one.
- more than 50%, the rate shall be 70% of the fixed one.
In order to implement tax exemption possibility, commercial banks have to present the Calculation of the corporate income tax and the Calculation of the tax for accomplishment and development of social infrastructure as of the end of the reporting period, as well as the reference to the share of long-term investment funds in the credit portfolio. The latter should not be presented by the banks that do not implement tax exemption.