Monday, 01, June, 2020

President Shavkat Mirziyoyev signed the Next Measures to Support Households and Business during Coronavirus Pandemic Decree.

According to the document, from June 1 to September 1, 2020 small businesses, as well as markets and shopping malls, cinemas, restaurants, public transport, businesses that provide passenger carriage services, let premises, including for banquets, and sports and fitness facilities shall be waived from paying property tax and land tax.

Small business will be provided with additional state support in the form of write-offs of:

  • property tax and land tax payable for April and May, for which interest-free deferral (installment plan) was provided in accordance with Presidential Decrees of March 19, No. UP-5969 and of April 3, No. UP-5978;
  • penalties and fines for land tax and property tax as of May 15, accumulated as of January 1.

Earlier, businesses were entitled for a deferral to pay VAT when importing goods (works, services) for up to 120 days. Micro-firms and small enterprises engaged in foreign economic activity for at least one year before the day of application to the customs authorities shall be entitled to apply a deferral of payment of customs duty and excise tax levied on the import of goods, except for consumer goods, until July 1, with further payment of deferred amounts in equal installments over 120 days.

From May 1 to July 1, for microfirms and small enterprises, save for excisable goods producers, state enterprises, legal entities with a state share in the authorized capital of 50 percent or more, the social tax rate shall be reduced from 12% to 1% .

The decree suspends the collection of debts on taxes, penalties and accrued fines for violation of tax laws by micro-firms and small enterprises as of May 15.

The tax authorities were instructed to revoke collection orders for debiting and transferring funds from their bank accounts as of May 15.

Taxpayers will be able to withdraw payment order for performance of tax obligations that were not performed as of May 15.

The experiment to provide loans for construction and reconstruction of housing from the funds of the Ministry of Finance shall be extended to Tashkent.

Starting from June 1, the number of beneficiaries of families with children under the age of 14 will increase by 10%, as well as child allowance until they reach the age of 2 years and financial assistance.

The decree instructed to provide additional support for compensation for repayment of interest payments:

  • for investment loans issued in national currency with an interest rate not exceeding 1.75 times the basic rate of the Central Bank in the first year of the loan agreement;

The business ombudsman was instructed to monitor the due performance of the said reliefs and state support measures during the coronavirus pandemic, with proposals for the application of liability for violation of the law.

The Ministry of Finance should provide subsidies from the Anti-Crisis Fund to the budget of Karakalpakstan, local budgets of provinces, the city of Tashkent, districts and cities, as well as to the extrabudgetary Pension Fund (if necessary) in connection with shortfalls due to tax reliefs and an increase in the number of recipients of social benefits.

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