President Shavkat Mirziyoyev signed a decree today, assigning the whole territory of the Navoi province as a free economic zone (FEZ) for innovative, high-tech, export-oriented and import-substituting industries until January 1, 2030. The validity period of the FEZ may be extended.
The decision aims to create "favorable conditions for business, the development of innovative entrepreneurship and high-tech industry, as well as the creation of additional capacities for deep processing of mineral resources and the production of competitive products i."
Among the main axes of development of the Navoi province as the FEZ are the development of innovation, attraction of direct investments, creation of clusters for the production of chemical products and building materials, development of the transport and engineering infrastructure of the province, and others.
Enterprises that have received the status of the resident of the Navoi free economic zone are exempt from paying:
- land tax, income tax, corporate property tax, single tax payment for micro firms and small enterprises;
- customs payments (except for customs clearance fees) for equipment, raw materials, tools and components imported for their own production needs, with the released funds sent for creation of new ones, as well as modernization, reconstruction, technical and technological re-equipment, expansion of existing industries, construction of industrial buildings, purchase of resources and materials necessary for their own production needs, without the right to refund the negative amount of tax added cost arising from the export of products;
- customs fees (except for customs clearance fees) for construction materials not produced in Uzbekistan and imported as part of projects, as per the lists generated in the prescribed manner.
These benefits and waivers are granted for a period of 3 to 10 years, depending on the amount of investments, including the equivalent:
- from 300 thousand to 3 million dollars - for a period of 3 years;
- from 3 million dollars to 5 million dollars - for a period of 5 years;
- from 5 million to 10 million dollars - for a period of 7 years;
- from 10 million dollars and more - for a period of 10 years, with the use of the profit tax rate and the single tax payment in the amount of 50% below the current rates for the next 5 years.
According to the decree, the acts of tax legislation of the Republic of Uzbekistan that worsen the position of taxpayers shall not be applied to the residents of the Navoi free economic zone.
For founders of enterprises with foreign investments - residents of the Navoi FEZ and members of their families, from June 1, a three-year “investment visa” shall be introduced with the possibility of its extension without the need to leave the country.
Earlier, the President of Uzbekistan proposed to turn the Navoi province into a free economic zone for innovative and high-tech industries focused on exports during a trip to the in March province.