By: Trends Editorial Team
Free Economic Zones
Uzbekistan has 24 free economic zones (FEZs) offering export- oriented enterprises special benefits and infrastructure. Between 2008 and 2021, 559 investment projects were implemented in FEZs, which created 46, 833 jobs and attracted 905.6 million USD in foreign investments. Uzbekistan provides businesses with competitive, low-cost utility tariffs and corporate income tax (CIT) and value- added tax (VAT) rates. The country’s physical infrastructure is meanwhile undergoing a large-scale modernization and expansion process. Moreover, Uzbekistan has a well- educated workforce at relatively attractive wages and labor costs.
List of free economic zones
Navoi FEZ , Termez FEZ ,Nukus-pharm FEZ, Zomin-pharm FEZ, Kosonsoy-pharm FEZ, Sirdaryo-pharm FEZ,Boysun-pharm FEZ, Bustonlik-pharm FEZ , Parkent-pharm FEZ , Andijan -pharm FEZ
Charvak FTZ , Angren FEZ, Jizzakh FEZ , Urgut FEZ, Gijduvan FEZ, Kokand FEZ , Namangan FEZ , Hazarasp FEZ, Balik FEZ , Sirdaryo FEZ, Bukhoro-agro FEZ, Chirokchi FEZ
Benefits and Preferences in the Free Economic Zones
In accordance with the Decree of the President of the Republic of Uzbekistan of 26.10.2016. No.DP-4853, enterprises-participants of free economic zones (hereinafter – the FEZ) are exempt from payment: land tax, income tax, tax on property of legal entities, tax on improvement and development of social infrastructure, single tax payment for microfirms and small enterprises, as well as mandatory contributions to the Republican Road Fund and extra-budgetary Fund for reconstruction, overhaul and equipment of secondary schools, professional colleges, academic lyceums and medical institutions under the Ministry of Finance of the Republic of Uzbekistan; customs payments (except for customs clearance fees) for equipment, raw materials and components imported for their own production needs; customs payments (except for customs clearance fees) for construction materials not produced in the republic and imported within the framework of projects, according to lists approved by the Cabinet of Ministers of the Republic of Uzbekistan; Benefits in the free economic zone are granted for a period from 3 to 10 years depending on the amount of investments made, including the equivalent (USD): from 300 thousand dollars 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 dollars to 10 million dollars – for a period of 7 years; from 10 million dollars and above – for a period of 10 years, with the application of the profit tax rate and the single tax payment in the amount of 50% below the current rates for the next 5 years.
The enterprises participating in the FEZ are exempt from paying for the entire period of activity of free economic zones from paying customs duties (except for customs clearance fees) on imported raw materials, materials and components in terms of products sent for export. The state provides a guaranteed connection of enterprises- participants of the FEZ to the engineering and communication networks, with timely connection to the production sites and their uninterrupted functioning.