Uzbekistan

1
Uzbekistans financial overview

• Deputy minister of finance
• Republic of Uzbekistan
• S. Bekenov

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GDP growth over period of 2001-2006
(in )
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National measure growth for 2006
National measure Growth in ()
GDP including 7,3
- Industrial production 10,8
- Agriculture 6,2
- Services 19,5
Investment 11,4
Export 31,5
Real wage 36,0
Inflation rate Deflate till 6,8
State budget balance 0,5 to GDP
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• Tax burden change dynamics over period of
  1991-2006

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Taxation revision for small business and micro
firms
Till the July 1, 2005
Single tax payment rate brought down from 13
in 2005 to 10 in 2007
Single tax 12
Assessments to off-budget pension fund 0,7
Assessments to republican road fund 1,5
Assessments to school fund 1
Sum of taxes and assessments 15,2
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Created conditions for small business
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Share of small business in GDP
8
Changes in tax rates over period of 2005-2007
Kind of taxes 2005 2006 2007
Income tax for legal entities 15 12 10
Single tax payment 13 13 10
Single social transfers 31 25 24
Single tax for natural persons (maximum value) 30 29 25
9
Created benefits for non-manufacturing business

• According to the Decree of the President of the
  Republic of Uzbekistan dated April 17, 2006
  About the measures on acceleration of
  non-manufacturing business and services
  development in the Republic of Uzbekistan with
  the purposes of creation of favorable conditions
  for the acceleration of non-manufacturing
  business and services development, and increase
  its share in the economy of the country, legal
  entities, rendering following services are
  exempted from income-tax and single-tax payments
  till December 31, 2010
• - Microcriditig and leasing services
• - Insurance services
• - Professional participants services in the
  insurance market
• - Accounting and audit services
• - Household services.

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Tax privileges given in the security market

• The following types of income of legal entities
  and natural persons are not subjected to
  taxation
• - the income received as the dividends, and
  transferred to increase the equity of legal
  entity, from which they were received
• - the interest revenue from government-paper
• Revenue of legal entities and natural persons
  received as the share dividends from commercial
  banks are exempted from taxes for the period till
  January 1, 2010.
• The following activities are exempted from the
  value added tax
• - operations on securities movement
• - depository services and services in
  organization of securities auction
• Investment and privatization investment funds
  revenue received as the share dividends from the
  investment to owned enterprises, and income
  directed to purchase the shares in owned
  enterprise are exempted from tax payments, and
  payments to off-budget funds

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Audit service development
1. With the purposes of creation of favorable
conditions to accelerate the development of audit
services, and increase its share in the economy
of the country, the income received from audit
services is exempted from income-tax and
single-tax payments till April 1, 2009 ( Decree
of the President of the Republic of Uzbekistan
dated 17.04.2006 PP-325)

• 2. With the purposes of creation of favorable
  conditions to increase the credibility of
  security market participants towards the
  financial information, provided by the paper
  Issuers, and creation the basis for corporate
  management development
• In case of issue the corporate bonds, the open
  joint-stock companies, have to provide the
  financial information confirmed by the auditors
  conclusion
• Since January 1, 2007, the enterprises with
  balance cost of assets more than 1 billion UZS
  have to create the internal audit services,
  appointive and accountable to the supervisory
  board
• At the enterprises, where the governmental
  equity share is more than 50 , the audit company
  selection for performance of external audit is
  carried out on a competitive basis from the list
  determined by the State property committee and
  the Ministry of finance of the Republic of
  Uzbekistan.
• (Decree of the President of the Republic of
  Uzbekistan dated 27.09.2006?. PP-475)

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Basic directions of reforming and development of
the insurance services market

• 1. With the purposes of creation of favorable
  conditions for acceleration the development of
  insurance services market, since April 1, 2006
  revenue from rendering insurance services is
  exempted from income tax and single tax payments
  for three years period
• (Decree of the President of the Republic of
  Uzbekistan PP-325 dated April 17, 2006)
• 2. According to the Decree of the President of
  the Republic of Uzbekistan PP-640, dated May 21,
  2007, the given privileges are applied to all
  professional participants in the insurance
  market.
• 3. Approved by the Decree of the President of the
  Republic of Uzbekistan PP-618 dated April 10,
  2007, the Program on development the insurance
  services market for 2007-2010 is anticipating
  following activities
• further development of legislative and normative
  bases of insurance, insurance activity and
  insurance supervision in accordance with
  international practice
• expansion in volumes and variety, and improvement
  in quality of rendering insurance services,
  especially in the areas of enterprise activity
  insurance, import-export operations insurance,
  life long-term insurance
• integration of the Republican insurance market in
  the international insurance markets
• insurance manpower training, retraining and
  rising the level of employees skill system
  development

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THANK YOU!