Uzbekistan will not review tax benefits provided to foreign oil and gas companies under the PSA

Uzbekistan will not review tax benefits for foreign oil and gas companies provided under production sharing agreements (PSAs).

Recall that with the adoption of the new version of the Tax Code, from April 1, 2020, it is planned to abolish tax benefits that discourage the formation of a normal competitive environment, that is, provided by individual companies or entrepreneurs.

"The privilege, which was granted before January 1, 2020, will be valid until its expiration. From January 1, 2020, privileges in Uzbekistan are provided exclusively according to the Tax Code," Fazliddin Umarov noted.

In particular, according to Article 75 of the Code, tax benefits for certain taxes (excluding VAT, excise tax and subsoil use tax) can be granted by decisions of the head of state, only in the form of a reduction in the established tax rate, but not more than by 50% and for a period no more than three years.

At the same time, in the new version of the Tax Code, in order to support enterprises that are in financial difficulty, a norm has been introduced that allows canceling the deadlines for paying taxes or providing the opportunity to pay tax payments by installments.

25-03-2020 11:36