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VAT (value added tax) reduced from 20 to 15 percent

The President signed the Decree “On measures to further improve the tax policy of the Republic of Uzbekistan”. According to the Decree, from October 1 of the current year, the rate of VAT was reduced from 20 to 15 percent. Also, the current procedure for suspension by tax authorities of operations on taxpayer accounts with commercial banks is canceled.
In addition to that, in the process of preparing the draft State Budget for 2020, it is provided for:
  • decrease in the rate of a single social payment from 25 to 12 percent for state enterprises, legal entities with a state share in the authorized capital (authorized capital) in the amount of 50 percent or more;
  • Establishment of a base rate of corporate income tax at a rate of 15 percent with the preservation of the tax rate on income paid in the form of dividends;
  • cancellation of the simplified procedure for calculating and paying value added tax.
From October 1, 2019, the amount of the single tax payment previously credited to the off-budget Pension Fund under the Ministry of Finance is credited to the budgets of the Republic of Karakalpakstan, local budgets of regions and Tashkent city.
 
Source: Legal Info (https://t.me/leginf)