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Income tax rate for legal entities reduced to 8%

02.01.2014 1003

02.01.2014  "UzReport"

     Presidential Resolution "On key macroeconomic indicators and parameters forecast of the State budget of the Republic of Uzbekistan for 2014" has approved the tax rate on corporate income for 2014.
     According to the document, in 2014 the income tax rate for legal entities has been reduced from 9% to 8%.
     For commercial banks income tax rate in 2014 will remain at 15%.
     For legal entities making income from auctions, mass entertainment activities through involving legal entities and individuals (including non-residents), licensed to practice concert activity, the income tax rate will also remain unchanged at 35%.
     In accordance with the document on exporting enterprises extend tax exemption on profits. Thus, if exports share of goods, works and services of own production sold for hard currency, ranging from 15 % to 30% of total sales, then the tax rate is reduced by 30 %, and if 30 % or more, the rate shall be reduced by half (50%).
     At the same time, the tax exemption does not apply to companies that export commodities, a list of which has been approved by decree of the President of the Republic of Uzbekistan dated October 10, 1997 № UP-1871.
     For service businesses the order is preserved, according to which income tax rate is reduced by 5% for the volume of services paid with bank cards.

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