TASHKENT (TCA) — Starting from 1 January 2016, foreign managers of Uzbekistan’s joint stock companies have been exempted from the income tax for private individuals, Novosti Uzbekistana news portal reported.
Uzbek joint stock companies that employ foreign managers have also been exempted from the single social payment on their salaries.
Such amendments to the Tax Code were made on 29 December 2015.
The government says such measures will make Uzbek joint stock companies more open and attractive to foreign investors.
It was earlier reported that joint-stock companies in Uzbekistan must have at least 15 percent of foreign shareholding in their charter capitals starting from July 1, 2016.
According to the Uzbek Presidential Resolution of December 21, 2015, failure to comply with the requirement within the time-frame allowed may result for a nonconforming company in its mandatory restructuring to a different legal form, and its withdrawal from the registry of joint-stock companies with subsequent loss of associated tax advantages and incentives. The exceptions to this rule are the joint-stock companies engaged in the production and primary conversion of strategic raw materials, natural monopolies, and suppliers of socially-oriented goods and services listed in relevant resolutions of the Cabinet of Ministers of Uzbekistan.
Through January 1, 2020, foreign investors benefit from the Resolution in terms of their exemption from income tax on dividends derived from their shareholding in local joint-stock companies.