Transcript Single tax payment

Uzbekistan’s
financial overview
Deputy minister of finance
Republic of Uzbekistan
S. Bekenov
1
GDP growth over period of 2001-2006
(in %)
108
107,7
107,0
107,3
107
106
105
104,2
104,0
104,4
104
103
102
2001
2002
2003
2004
2005
2006
2
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
State budget balance
Deflate till 6,8 %
+ 0,5% to GDP
3
Tax burden change dynamics over
period of 1991-2006
50,0%
45,0%
41,0%
40,0%
37,0%
30,4%
30,0%
22,6%
21,3%
20,0%
10,0%
0,0%
1991
1996
2000
2004
2005
2006
4
Taxation revision for small business
and micro firms
Till the July 1, 2005
Since the July 1, 2005
Single tax payment rate
brought down from 13% in
2005 to 10% in 2007
Single tax–
12 %
Single tax payment 13%
Assessments to offbudget 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
Small business
Small business entities got an option for simplisticall taxation:
- Single tax payment;
- single land-tax – for farm producers.
One year single tax deferral for newly established small business
entities
Verifications reduction (not more than once in 4 years).
The periodicity of tax and duties calculations submission is reduced
(once in a quarter).
The periodicity of financial report submission is also reduced (once in
a year).
Simplified book-keeping.
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Share of small business in GDP
44,0%
25000
42,0%
20000
40,0%
15000
38,0%
10000
36,0%
5000
34,0%
32,0%
0
2006
2005
2004
GDP
Small business
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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%
8
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 offbudget 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 auditor’s 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 27.09.2006г.
#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
employee’s skill system development
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THANK YOU!
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