Investors in New Tashkent to be exempt from land and property taxes for 20 years
Shavkat Mirziyoyev signed a decree to support urban development projects worth $50 million or more in New Tashkent and the regions
On November 10, the President signed a decree to support large-scale urban development projects worth $50 million or more in New Tashkent and the regions of Uzbekistan. The document provides for the elimination of administrative and bureaucratic barriers, as well as measures to enhance the investment attractiveness and tourism potential of the territories.
In New Tashkent and other special zones listed in the annex to the decree, a special legal regime known as a 'regulatory sandbox' will be introduced for such projects. It provides for business support based on the principle of 'the state as an investment partner.'
Companies implementing large projects in special zones will be exempt from property tax and land tax for 20 years. The profit tax rate for leasing and selling properties will be 1%. The preferential period will depend on the volume of investments: five years for investments of $50–100 million, 10 years for $100–500 million, and 15 years for investments exceeding $500 million.
General contractors and primary design organizations will not pay VAT on payments for services provided by foreign organizations and individuals. Dividends received by investors from construction projects and reinvested in Uzbekistan will be tax-exempt until 2040.
The powers of the Directorate for the Construction of New Tashkent will be extended to other directorates responsible for the development of special zones. They will be able to independently approve requirements for territorial planning documentation, establish basic conditions for facilities during land plot implementation, and determine specific technical conditions for each project.
During a meeting with entrepreneurs implementing projects in New Tashkent on October 12, the President also announced reimbursement of all expenses for 'green' certification of non-residential construction projects with investments exceeding $50 million.
Each major project will be assigned a responsible representative who will accompany the investor until the completion of the work and assist in resolving project-related issues. Additionally, individual investment agreements with mutual obligations and a list of applicable benefits are planned to be concluded with investors.
