International Journal of Management and Economics Fundamental
75
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VOLUME
Vol.05 Issue 06 2025
PAGE NO.
75-78
10.37547/ijmef/Volume05Issue06-14
Analysis of Tax Benefits on Profit Tax
Yangieva Nargiza Saidqulovna
Assistent of the Department Tax and Taxation, Tashkent State University of Economics, Uzbekistan
Aripova Azizа Alisherovna
Assistent of the Department Tax and Taxation, Tashkent State University of Economics, Uzbekistan
Received:
22 April 2025;
Accepted:
18 May 2025;
Published:
20 June 2025
Abstract:
This article analyzes the scientific interpretation of the issues of stimulating income tax payers through
tax credits, the legal basis for providing tax credits, as well as tax benefits provided for income tax.
Keywords:
Tax benefits, benefits, tax base, tax report.
Introduction:
The incentive function of taxes is one of
the important tasks of the tax system, actively
influencing the development of production, the
efficient use of material, raw material, financial and
labor resources, accumulated property, that is,
reducing the volume of taxation. By reducing the tax
burden, it is possible to stimulate the development of
production, strengthen the financial situation and
investment activity. Tax incentives, unlike other means,
are aimed at encouraging or supporting taxpayers by
reducing their tax obligations or creating other taxation
conditions that are more favorable than those of other
taxpayers.
Tax benefits granted to taxpayers under the profit tax
must meet the following criteria:
- exclusion of certain types of expenses from taxable
profit;
- reduction of rates for certain types of organizations;
- exemption from profit tax for certain types of
activities;
- exemption from profit tax for certain types of
organizations;
- exemption from profit tax for certain types of
organizations for a certain period during the initial
period of their activities.
Literature review
According to N.V. Balabanova and T. R. Valinurov, tax
incentives are one of the methods of regulating indirect
taxes and creating more favorable business conditions
for their recipients.
Tax incentives are a type of legal privileges, since they
are a reduction or complete non-payment of taxes and
fees by the taxpayer in order to ensure the interests of
economic relations within the framework of the
relevant process. [1]
In her scientific works, N.R. Kuzieva made a number of
proposals to further stimulate the attraction of foreign
investments to free economic zones operating in our
Republic and to further improve the mechanism for the
effective operation of tax and customs privileges
granted to enterprises with foreign investment. [3]
F. Rakhmatullaeva defined tax privileges as a category
as follows:
“privileges are a set of ways, rights and
obligations of a taxpayer to fully or partially reduce his
tax obligations in the manner established by law in
order to regulate the economy by the state and solve
social problems”
In order to reveal the essence of tax benefits, Z.
Kurbanov and F. Akramov theoretically studied them
into three groups:
–
full or partial exemption from taxes;
–
tax deductions;
–
tax credits (long-term deferred obligations for taxes
and mandatory payments). [4]
According
to Z. Z. Urmonov, “tax benefit is the
opportunity for taxpayers, in accordance with the Tax
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International Journal of Management and Economics Fundamental (ISSN: 2771-2257)
Code and other legislative acts, to reduce their tax
liability, reduce the tax rate and tax base, not pay taxes
and other mandatory payments or pay them in a
smalle
r amount.” [5]
Based on the above, we can conclude that tax benefits
are provided to encourage taxpayers and attract
foreign investments, support investors and create
conditions for them.
Empirical findings and discussion
Decree of the President of the Republic of Uzbekistan
No. PF-
6019 dated July 6, 2020 “On additional
measures to further develop the competitive
environment and reduce state participation in the
economy” was adopted. This Decree was adopted in
order to create a competitive environment in our
country, to reduce state participation in the economy,
to further reduce the negative impact of the monopoly
of economic entities with state participation on the
competitiveness of the economy, to increase the
efficiency of the system of granting privileges and
preferences, as well as to reduce the regulatory burden
on business entities. Based on this Decree, the
Antimonopoly
Committee
was
tasked
with
implementing the following tasks:
The Decree of the President of the Republic of
Uzbekistan No. PF-4947 dated February 7, 2017 "On
the Strategy of Actions for the Further Development of
the Republic of Uzbekistan" establishes the
implementation of state control over the effectiveness
of state support provided in the form of tax benefits,
preferences and exclusive rights to carry out activities,
and in case of their negative impact on the competitive
environment, to make proposals for their cancellation,
to establish any types of benefits, guarantees,
preferences for business entities, as well as to grant
new rights, including exclusive rights, to develop
criteria for the effectiveness of benefits and
preferences, and to form a list of business entities using
benefits and preferences.
In addition, the Decree of the President of the Republic
of Uzbekistan No. PF-
101 dated April 8, 2022 “On the
next reforms to improve the business environment and
create conditions for sustainable economic growth
through the development of the private sector”, No.
PF-
287 dated December 30, 2022 “On measur
es to
classify the regions of the republic into categories and
introduce a tiered system of entrepreneurship
support”, No. PF
-
162 dated June 28, 2022 “On
measures to create favorable conditions for business
during the period of tax administration reform”,
No.
PP-
73 dated December 30, 2021 “On measures to
ensure the implementation of the Law of the Republic
of Uzbekistan “On the State Budget of the Republic of
Uzbekistan for 2022”, No. PP
-471 dated December 30,
2022 “On the Budget of the Republic of Uzbekist
an for
2023 The issues of granting tax privileges are also
reflected in the decrees and resolutions "On measures
to ensure the implementation of the Law of the
Republic of Uzbekistan "On the State Budget".
The legal framework of the tax system of the Republic
of Uzbekistan is improving. If we pay attention to all tax
legislation adopted to date, we can see general
similarities in determining tax benefits in all of them.
That is, in all legislative acts, benefits for types of taxes
are mainly provided in the following forms:
- complete exemption from tax;
- temporary or partial exemption from tax;
- in the form of a reduction in the tax base.
In our country, starting from January 1, 2023,
differentiated rates of profit tax are being implemented
in the following order, depending on the characteristics
of the sectors of taxpayers:
the basic rate of profit tax is 15%,
for certain categories - 20%,
in certain sectors - 0%,
at a rate reduced by 50% - 7.5%.
We will consider an analysis of tax benefits granted to
large taxpayers in 2022-2023 in our country, including
income tax.
Table 1
Tax benefits used by large taxpayers in 2022 (in terms of tax types), billion soums
Т/р Tax type
Солиқ
имтиёзлари
фойдаланилган
Улуши,
%
Ҳолатлар
Сони
Суммаси
Жами
14939
46348,7
100
1.
VAT
9056
43373,4
93,6
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International Journal of Management and Economics Fundamental (ISSN: 2771-2257)
2.
excise tax
7
1,8
0,004
3.
Profit tax
178
2,106,3
4,5
4.
Land tax levied on legal entities
1553
346,8
0,7
5.
Tax on property of legal entities
1512
113,6
0,2
6.
Personal income tax
2446
206,6
0,4
7.
Tax for use of water resources
16
4,3
0,01
8.
Social tax
171
195,9
0,4
In 2022, the total amount of tax benefits granted
amounted to 72,963.7 billion soums, while the amount
of benefits granted to large taxpayers amounted to
46,348.7 billion soums, or 63.52% of the total benefits.
This ratio is also the same for individual types of taxes.
For example, the total tax benefits under VAT
amounted to 64,107.9 billion soums, of which 43,373.4
billion soums, or 67.66%, were tax benefits granted to
large taxpayers under VAT. 93.6% of the tax benefits
granted to large taxpayers fell on VAT, and 4.5% on the
share of profit tax. The amount of tax benefits granted
under profit tax amounted to 2,106.3 billion soums.
An analysis of tax incentives applied by tax type in the
Republic of Uzbekistan in 2020-2024 was presented,
showing that tax incentives were used in the amount of
31,065.6 billion soums in 2020, 43,479.3 billion soums
in 2021, and finally, in 2022, 72,963.7 billion soums, in
2023, 69,777.9 billion soums, and in 2024, 83,276.3
billion soums.
Table 1
Analysis of tax incentives applied by tax type in the Republic of Uzbekistan in 2020-
2024, in billion soums
If we look at the individual tax types, it can be seen that in 2020, the amount of benefits provided under VAT
№ Tax type
2020
2021
2022
2023
2024
Total :
31 065,6 43 479,3 72 963,7 69 777,9 83 276,3
1
VAT
24 643,3 36 766,3 64 107,9 57 287,9 68 355,5
2
Profit tax
2 930,0
2 219,5
4 641,3
5 021,7
6 212,1
3
Land tax
1 313,2
2 575,9
931,8
1 697,6
2 135,5
4
Income
tax
of
individuals
917,9
1 073,8
1 028,3
1 024,6
1 566,9
5
Tax for use of
water resources
443,7
39,1
12,3
28,5
92,1
6
Social tax
346,5
386,3
1 187,4
1 998,8
3 036,7
7
Property tax
274,0
306,1
933,0
1 399,6
1 645,7
8
Turnover tax
196,9
112,3
97,2
61,4
231,8
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International Journal of Management and Economics Fundamental (ISSN: 2771-2257)
amounted to 24,643.3 billion soums, making it the type
of tax with the largest benefits. In 2023, this amount
will be 57,287.9 billion soums for this type of tax and
68,355.5 billion soums in 2024, which is 82.08 percent
of all tax benefits. Benefits provided under profit tax
amounted to 6,212.1 billion soums in 2024, which is
7.46 percent of total tax benefits.
CONCLUSIONS
In short, encouraging taxpayers through incentives
ensures additional tax revenues to the budget.
Application of the differentiated rate of profit tax
creates a number of reliefs in taxation.
Based on the inventory of tax benefits and preferences
provided by the tax legislation in our country, it can be
concluded that it is necessary to systematize them in
order to increase efficiency.
REFERENCE
Балабанова
Н.В.,
Валинуров
Т.Р.
Лготы и
преференции в системе налогового регулирования.
«Современные
наукоемкие
технологии.
Регионалное приложение» №4 (44) 2015.
Федосимов Б.А. Совершенствование правовой
регламентатсии института налогового лготирования
в Российской Федератсии. Правоприменение. 2022.
Т. 6, № 1. С. 88–
99
Kuzieva N.R. Priorities of tax policy in attracting foreign
investments. Electronic journal of international finance
and accounting. №6, декабр.2017.
Kurbanov Z., Akramov F. “"Issues of improving the
financial accounting of tax benefits" Biznes-expert
scientific journal №9 2015.
Urmonov J.J. Issues of improving the regulation of the
activities of business entities by means of the tax
mechanism. Abstract of the Doctor of Economic
Sciences dissertation. 2018
