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EDUCATION SYSTEM
International scientific-online conference
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MONITORING OF TAX PREFERENTIAL INVESTMENT FUNDS
Azizov Abrorjon Salidjanovich
Commercial Director of Inter Food LLC
salma.aa@mail.ru
https://doi.org/10.5281/zenodo.11124913
It should be noted that over the years of independence, a favorable
investment climate has been formed in Uzbekistan; a wide system of benefits,
preferences and guarantees to protect the rights and interests of foreign
investors has been legislatively established.
As a result, over 4.2 thousand enterprises with foreign investment have
been created and successfully operate in the republic in leading industries and
areas of the economy. More than 3.0 billion foreign investments are absorbed
annually, mainly direct ones, which account for over 26.6 percent of the total
investment in the country’s economy, which is concrete evidence of the growing
interest and confidence of foreign investors in the stability and reliability of the
republic’s economy and the prospects for its development.
At the same time, the ongoing global financial and economic crisis,
increased competition in global and regional investment markets require the
adoption of additional measures to create a more favorable investment climate
in the country, stimulate the attraction of foreign investment for the
implementation of projects for modernization, technical and technological
renewal of production, as well as liquidation existing bureaucratic barriers and
obstacles in working with foreign investors, preventing illegal interference by
government and regulatory authorities in the activities of enterprises with
foreign investment.
Clause 3. 4434 of the Decree of the President of the Republic of Uzbekistan
dated April 10, 2012 “On additional measures to stimulate the attraction of
foreign direct investment” investment projects worth more than 50 million US
dollars and a foreign investor’s share of at least 50 percent within the
production area. It is noted that the construction of the necessary external
engineering and communication networks will be carried out at the expense of
budgetary funds and other internal sources of financing.
Also, Article 471 of the Tax Code of the Republic of Uzbekistan for legal
entities created with the attraction of private foreign direct investment and
specializing in the production of products (provision of services) in sectors of
the economy according to the list approved by law, provides for the specific
application of benefits for certain taxes.
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Direct private foreign investment refers to investments made without a
guarantee from the Republic of Uzbekistan by individuals who are citizens of a
foreign state, stateless persons permanently residing outside the Republic of
Uzbekistan, as well as foreign non-state legal entities.
Legal entities are provided with tax benefits in the form of exemption from
payment of land tax, property tax and tax for the use of water resources,
depending on the volume of private foreign direct investment for a period
determined by the decision of the President of the Republic of Uzbekistan.
An enterprise with the participation of private foreign direct investment
has the right to enjoy other tax benefits provided for by tax legislation.
Tax benefits apply if all the following conditions are met:
1) When placing legal entities in territories determined by law;
2) when foreign investors make direct private foreign investments
without providing a guarantee of the Republic of Uzbekistan;
3) if the share of foreign participants in the authorized capital
(authorized capital) of legal entities is at least 33 percent, and for joint-stock
companies - at least 15 percent;
4) when making foreign investments in the form of freely convertible
currency or new modern technological equipment;
In order to properly use these privileges, the General Prosecutor's Office
of the Republic of Uzbekistan should establish strict control over strict
compliance by all state and economic management bodies with current legal
documents to protect the rights and guarantees of foreign investors, enterprises
with foreign investment, as well as to prevent violations of the law and bring the
perpetrators to justice officials.
The reason is that the problem of capital outflow from the country and
foreign investment negatively affects the balance of payments of Uzbekistan and
causes negative phenomena in the national economy, such as a shortage of
foreign currency in the domestic foreign exchange market and exchange rate.
Solving the identified problems will require improving existing ones, as well as
searching for new legal mechanisms and means that would allow, on the one
hand, to limit the outflow of capital from the country, and on the other, to
control incoming foreign investment, taking into account the interests of the
national economy. One of the promising directions for such transformations is
the expansion of the methodological tools of state financial control.
SCIENCE AND INNOVATION IN THE
EDUCATION SYSTEM
International scientific-online conference
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References:
1. Options for low-income countries’ effective and efficient use of tax incentives
for
investment.
International
Monetary
Fund.
2015.
P.43.
https://www.imf.org/external/np/g20/pdf/101515.pdf
2. Monitoring Capital Flows to Sustainable Investments: Intermediate report.
2024. https://finance.ec.europa.eu/system/files/2024-04/240404-sf-platform-
report-monitoring-capital-flows_en.pdf
3.Victor.Thuronyi. Taxation of investment funds. Tax Law Design and Drafting,
Volume 2. 1998. https://doi.org/10.5089/9781557756336.071.
