Sunday, 16, June, 2024

Uzbekistan will not review tax reliefs for foreign oil and gas companies provided under production sharing agreements (PSAs), the deputy chairman of the State Tax Committee, Fazliddin Umarov said.

As reported earlier, the new version of the Tax Code shall, as of April 1, 2020, lift tax reliefs, which are said to hamper to the normal competitive environment.

"However, the reliefs, which were granted before January 1, 2020, will be valid until their expiration. From January 1, 2020 in Uzbekistan, privileges are provided exclusively as per the Tax Code," said Fazliddin Umarov.

According to the State Tax Committee, the new version of the Tax Code introduced a new principle for providing reliefs.

In particular, according to Article 75, tax reliefs for certain taxes (excluding VAT, excise tax and subsoil use tax) can be granted by decisions of the head of state, only in the form of a reduction in the established tax rate, but not more than by 50% and for a period no more than three years.

To support enterprises experiencing financial difficulties, a norm has been introduced that allows canceling the deadlines for paying taxes or providing an opportunity to pay tax by installments.

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