Uzbekistan - is, first of all, political stability, confidence in the future and consistent reforms in all spheres of a social and political life. This is the country where representatives of more than hundred ethnic groups and dozen religions live in peace and harmony.

Uzbekistan - is a leading industrial country in Central Asia where the volume of economy for the last six years has grown by 45 percent, industrial production – 1.6 times, agricultural production – 1.5 times, the foreign trade turnover – 1.7 times, gold and currency reserves – 3.7 times, growth rate of GDP for last four years is kept at a level of 7 percent, and inflation rate for the last six years has reduced from 26% to 2,9%.

This is the transport infrastructure, of 6,5 thousands km of railways, over 43,5 thd. km. of highways and developed air communication network which connects the most remote regions and uninhabited areas of the country to major centers, providing access to international transport systems and basic natural mineral and raw materials resources in the country. The Uzbekistan Airways company performs regular direct flights to more than 40 cities all over the world and has 43 representative offices in 24 countries.

This is the country where is annually generated up to 48bln.kW/h of electric power and more than 10 mln. Gcal of thermal power that fully meet the economic and population demand of the country and moreover allow to export a part of the extractive energy resources.

Uzbekistan - is a 10 percent rate of corporate income tax; tax incentives and privileges, given for the foreign investors, including tax exemption on property, income and the customs duties.

Uzbekistan is crossroads of Central Asia that creates favorable environment to develop regional cooperation and participate in regional and transnational projects of developing transport corridors. It is a free trade zone with the CIS countries.

Uzbekistan - is one of the leading countries of the world on reserves of copper, silver, gold, lead, zinc, tungsten, natural gas and other minerals. This is a country which in advance has ensured its energetic security.

Uzbekistan - is a highly skilled specialists, 100% literacy of the population during 4 generations, where every fourth has the high or secondary vocational education.

Uzbekistan - is an excellent climate, a natural landscape, hospitality, multiculture, an infrastructure for tourism and recreations (hotels, airports of international class).


The government policy on attraction of foreign investments is major tool of structural reforms in priority sectors of the economy of Uzbekistan.
For the past years, foreign capital in the economy of Uzbekistan has tended to rise. If in 1993, the foreign investments comprised only 0.8% from the total capital investment, after 2003, this indicator was over 20.0%.
For years of Independence, Uzbekistan created favorable investment climate, broad spectrum of legal guarantees and preferences for foreign investors, which can be characterized firstly, by the political and economical stability preserved in the country. Besides, there was worked out integral system of measures on encouragement of activity of enterprises with foreign investments including:

  • general measures comprising preferences for projects, entered into the Government Investment Program of the Republic of Uzbekistan;
  • encouragement of engagement of foreign investors in privatization process;
  • encouragement of the technical re-equipment and the production of consumer goods.

The favorable investment climate is based on several legislative documents - On guarantees and measures on protection of the rights of foreign investors, the Law of the Republic of Uzbekistan On Foreign Investments, the Decree of the President On additional advantages and preferences offered to enterprises with foreign investments, On additional measures on encouragement of export of products of enterprises with foreign investments, the resolution Cabinet of Ministers of the Republic of Uzbekistan On additional measures on strengthening protection of direct foreign investment and others.
The Law On guarantees and measures of protection of foreign investors' rights also provides for the protection of foreign investments for the following 10 years after the investment is made, from the amendments in legislation, which deteriorate the investment conditions.
A foreign investor is entitled to engage in investment activity in Uzbekistan through:

  • Equity participation in companies, banks, trusts, cartels, associations, and other enterprises established together with Uzbek resident legal entities and individuals. In practice, this provision may only be applied to joint ventures that involve Uzbek legal entities;
  • Establishment of an enterprise with 100% foreign capital;
  • Making portfolio investment through the acquisition of bonds, shares, share certificates, and other securities issued by the Uzbek companies or the Government;
  • Total or partial acquisition of rights for land plots, rights for real estate including land utilization rights, concession rights effecting the utilization of subsoil resources, etc.

The tax privileges provided for foreign investors are as follows:

  • Starting from the 1st of July 2005, enterprises with foreign investments created in the most densely populated regions (Republic of Karakalpakistan and Djizak, Qashkadarya, Syrdarya, Surhandadya, Khorazm, Navoi, Andijan, Namangan and Fergana provinces) will be exempted from profit tax, property tax, tax on development of social infrastructure and territory, ecological tax, obligatory tax deduction for the Republican city-roads fond. It is determined that these tax privileges shall be presented in case of the volume of private and direct foreign investments:
  • from US$ 300 thousand to US$ 3 million - for 3 years;
  • over US$ 3 million to US$ 10 million - for 5 years;
  • over US$ 10 million - for 7 years.

The main conditions for the use of the mentioned tax privileges are as follows:
- The share of the foreign participants in the indicated capital budget of the enterprise must be no less then 50 percent;
- Inputting the direct private foreign investment after the governmental registration of indicated enterprise;
- Inputting the foreign investments in the form of convertible currency or in the form of modern technological equipment;
- Directing the profit gained from the results of the given privileges in the period of its use, with the goal of reinvesting for the further development of the enterprise.
·  Profit tax 7-year grace period for profit tax of legal entity from the moment of their state registration- if a foreign investment is made on the project(s) listed in the State Investment Program; 
·  Newly created enterprises, including enterprises with foreign investments (except dealing with trade, intermediary, sell, supply and storage activity), pay 25% of profit tax for the first year from the moment of state registration and 50% of profit tax for the second year from the set rate. Profit tax in the next years is paid fully according to set rate; 
·  Newly created enterprises, including enterprises with foreign investments (except dealing with trade, intermediary, sell, supply and storing up activity), organized on the territory of villages, communities, and kishlaks are exempted from taxation in the first year from the moment of state registration, pay 25% of profit tax in the second year and 50% of profit tax in the third year from the set rate. Profit tax in the posterior years is paid fully according to set rate; 50% of profit tax reduction - if company exports 30% or more of the total sales of its production (works, services); 30% of profit tax reduction - if company exports from 15% to 30% of the total sales of its production (works, services); 
·  Profits tax & single tax (for entities, using simplified system of the taxation) exemption for legal entities for period of 5 years if foreign investments are realized on projects included in the list of Localization program. Customs fees exemption for period of 5 year, (exemption from customs duty for customs formality) for imported technological equipment and it's spare parts, as well as material and components, not produced in the country and used in technological process for producing of localized product- if foreign investments are realized on project included in the list of Localization program; 
·  Grace period from taxes on property for the period of two years for newly created enterprises from the date of registration; Property tax for legal entities is exempted for period of 5 years in a part of the production capital funds, used for production of localized product - if foreign investments are realized on projects included in Localization program; 
·  Grace period from limits on salary payment fund; 
·  10% tax profit rate is set for legal entities specialized on production of children's goods; 
Specialized enterprises are enterprises producing:
- range of child products which make more than 60% of a total produced production naturally marked;
- female hygiene goods and works of art which make more than 60% of a total production;
·  According to Resolution ¹ 390 of the Cabinet of Ministers of the Republic of Uzbekistan of 13 November 2002 About stimulating measures directed to fill the market by consumer lines and perfection of relations of producers and trading organizations from 1 January 2003 till 31 December 2007; 
- enterprises, producing consumer goods, pay profit tax according to the profits received from the production of consumer goods, at the rate of 20% lower than current rate;
- enterprises, producing range of child goods, pay 7% of profit tax according to the profits received from the production of child goods;
- micro firms and small enterprises pay common tax from receipts, received from the production of consumer goods the rate of 25% lower than current rate;
- the profits of production enterprises, received at the expense of growth of physical volumes of consumer goods, are exempt from profit tax and common tax;
- enterprises, producing nonfood goods (except tobacco, jewelry, toilet and household soap and benzene) are exempt from the excise-duty provided that funds will be directed to extension of production, expansion of range and increase of competitiveness of produced consumer goods.
Tax profit rate for 2005 - 15%.
Tax profit rate for production enterprises with foreign investments with 50% or more shares in the Charter Capital is established depending on the size of a share of the foreign investor in the Charter Capital of the enterprise:
·  15% profit tax - if 50% or more of the company's paid-up charter fund is foreign capital and comprises of 1,000,000 USD or more; 
From the customs duty also exempted:

  • Property of foreign investors imported to the Republic of Uzbekistan for their personal manufacturing needs and also for personal needs of foreign investors and citizens of foreign states, in the Republic of Uzbekistan according to labor contract made with foreign investors;
  • Goods, imported by foreign legal entities, made direct investments into economy of Republic of Uzbekistan on a total sum of more than 50 mln. USD, provided that imported goods are the products of their own production;
  • Goods, works and services intended for realization of works according to Production Sharing Agreement (PSA) and imported to the Republic of Uzbekistan according to design plans and specifications by foreign investor or by other persons participating in fulfilling of works according to PSA and also investor's production exported according to PSA;
  • Technological equipment imported to the customs territory of Republic of Uzbekistan by foreign investors as their investment to charter capital of enterprise with foreign investments

Moreover, if an enterprise with foreign investment receives over 60% of its revenues from the sales of its products or services, then it will be deemed a production enterprise with foreign investment. Such enterprises are granted additional tax, customs and other preferences and concessions.
The foreign companies engaged in exploration and prospecting of entrails are provided the most favoured nation treatment which ensures:
- Exclusive right for prospecting and exploratory works with further development of any of the fields discovered in indicated territory through creation of joint venture, on conditions of concession or production sharing agreement;
- Priority right on granting of new territory for continuing of prospecting and exploratory works in a case if in territories stipulated in the contract for implementation of works resources having commercial value have not been detected;
- The property right and unrestricted export foreseen by the constituting documents of joint venture or concession agreement of a part of extracted hydrocarbon, and also products of their processing on the basis of tolling;
- Guarantee for reimbursement of actual costs on prospecting and exploratory works in discovering deposits of industrial value, in case of transfer them for further mining to the National Holding Company Uzbekneftgas.
Foreign companies attracted for prospecting and exploratory works in oil and gas are exempt from:
- All kinds of taxes, deductions and payments effective in the territory of the Republic of Uzbekistan, for the period of explorations and prospecting;
- Customs duties in import of equipment, material-technical resources and services needed for exploratory and other relevant works;
Joint ventures on extraction of oil and gas formed with engagement of foreign companies, involved in prospecting and exploratory works on oil and gas, are exempt from:
- Payment of the profit tax for the period of seven years from beginning of production of oil or gas. On expiration of the indicated term, the rate of the profit tax of the indicated joint ventures will be set at the rate of 50 % from the current rate;
- Payment of tax on property and on the incomes of the foreign participants from individual share in joint ventures;
- Mandatory surrender of a part of the foreign earnings from sales of product obtained as a result of activity on a extraction and refining oil and gas, for the period of return of the invested capital for prospecting and exploratory works.
Attraction of the foreign investments in development of provinces of Uzbekistan:
With the aim of further encouragement of attraction of foreign investments in creation of joint productions in provinces of the Republic of Uzbekistan, Cabinet of Ministers adopted Resolution ¹459 On the program of creation of enterprises with foreign investments in provinces of the country.
In accordance with the Resolution, newly created enterprises with foreign investments are exempt from customs (with the exception of customs duty for registration) for equipment, spare parts and accessory equipments, importing and used for own production.
Moreover, in order to form favorable conditions for establishment and development of private sector, production of small & medium enterprises and micro firms, registered acting on the territory of the Republic of Qaraqalpakstan and Khorazm province, independently of taxation systems, pay taxes (the average enterprises profit tax) on rate, reduced against current for 50%.
At the present time, potential foreign investors are offered various forms of investment such as creating joint-ventures, enterprise with 100% foreign capital, acquisition of a part or full stock of shares of privatized enterprise and etc, as well as multitude concrete projects in different sectors of the economy: industrial complex, agriculture, transport, telecommunications, construction, healthcare, tourism.

2009 anno dello sviluppo