Photo: katie.chizhevskaya // depositphotos.com
You won’t be able to keep a crocodile at home or pay for bus fares in cash, but you can legally place bets on sports. Kursiv Uzbekistan has compiled a summary of the legal changes that will take effect in Uzbekistan starting January 1, 2025.
Banks and clients
Garant Bank was one of the last banks to raise its authorised capital to 500 billion soums previous year.
Commercial banks’ minimum authorised capital requirement has increased from 350 bn to 500 bn soums.
The maximum debt burden threshold for granting loans or microloans to individuals has changed. Now, monthly payments for all loans a borrower has should not exceed 50% of their income for that period. Previously, this limit was set at 60%.
Hokimiyats and budgets
Hokimiyats have gained more rights and financial autonomy. They now have the authority to appoint and dismiss heads of district ministry departments, reward or discipline employees and establish public councils of entrepreneurs to facilitate dialogue between business and government.
Revenues from property, land, turnover taxes, and the rental of state assets will go entirely to local budgets. Half of the personal income tax will also be allocated to local budgets.
Local budgets now receive revenue from several sources, including property, land, and turnover taxes and the leasing of state assets. Except for certain large taxpayers, half of the personal income tax will remain within local jurisdictions. Furthermore, revenues from the sale of state assets will be directed toward local infrastructure development.
Crocodiles and hippos
A ban has been implemented on the possession of 67 species of wild animals for personal ownership or use in circus performances. The list includes bears, tigers, lions, crocodiles, snow leopards, wolverines, orangutans, chimpanzees, hippos, elephants and cobras.
These animals may now only be housed in zoos or specialised nurseries operated by legal entities, and only with permission from the Ministry of Ecology and Natural Resources.
Bonuses and benefits
Companies that manufacture clothing, shoes, and leather goods can benefit from tax incentives if they hire employees who are registered with social security or from low-income families. If at least 15% of a company’s workforce comes from needy families, the company will be subject to a reduced income tax rate of 1% for corporate and employee income taxes.
Cafés and restaurants can receive a VAT refund based on the proportion of non-cash transactions in their monthly sales. If at least 60% of their turnover is from non-cash transactions, they will receive a 40% VAT refund. If the non-cash transactions are less than 60%, the refund will be 20%.
Honourable donors now have the privilege of travelling free of charge on public transport and are entitled to preferential treatment at sanatoriums. Furthermore, they receive a one-time reward ranging from 5 to 15 basic calculation units, which amounts to between 1,875,000 soums and 5,625,000 soums.
The road has become more expensive, but not for everyone
The entry fees for heavy trucks from abroad have changed, resulting in an increase for Turkmen carriers. The new fees are as follows:
-The fee for a lorry weighing up to 10 tonnes has risen to $130 (previously $50).
– For a lorry weighing between 10 and 20 tonnes, the fee is now $180 (previously $100).
– For lorries weighing over 20 tonnes, the fee has increased to $250 (instead of $150).
If a lorry imports cargo from another country through Turkmenistan, there will be an extra charge of $375.
Conversely, Iranian heavy trucks are exempt from entry fees.
Betting on sports
Starting January 1, bookmakers will be legalised in Uzbekistan. Only residents of Uzbekistan who have registered a legal entity will be allowed to organise gambling, betting, and lotteries. Additionally, all servers must be located within the country. The minimum charter capital required for bookmakers is 56.25 billion soums, while for lottery organisers, it is 20.625 billion soums.
Goodbye, cash
Cash payments for fares on Tashkent buses are no longer accepted. Passengers can pay using a transport or bank card or a mobile app. If you do not have these options, you can purchase a single ticket from a payment terminal at the bus stop.
Cash payments will still be accepted for other types of public transport, but the fare will increase from 2,000 soums to 3,000 soums. For those paying electronically, the fare will remain unchanged at 1,700 soums.
On-the-job training
Starting January 1, graduates from universities and vocational schools will have the opportunity to undergo state certification at the companies and organisations where they are employed. Additionally, a training course focused on graduate assessment modelled after the “German experience” will be incorporated into the training plans of professional educational organisations.
Furthermore, the fee for issuing a certificate allowing foreign specialists to work in Uzbek educational institutions has been reduced by 30 times to just one BRV (375,000 soums as of the time of publication).
