Tashkent International Financial Centre (TIFC): What tax incentives can we expect?

Apr 16

2 min read

Following Presidential Decree No. PF-48, Uzbekistan is moving toward establishing the Tashkent International Financial Centre (TIFC) — a special legal and financial regime aimed at positioning the country as a regional financial hub.

While much attention has been given to the adoption of English common law, independent courts, and arbitration mechanisms, the tax regime is arguably the real driver of investor interest.

Legal support in Tashkent International Financial Centre

Here is the list of tax and customs privileges that’s is planned to be granted in the territory of TIFC:

1. Exemption from Corporate Income Tax and Social Tax

Income derived by the Centre Authorities and the Participants from services rendered within the territory of the Centre shall be exempt from corporate income tax and social tax, excluding income derived by digital (crypto) asset exchanges.

2.Exemption from Personal Income Tax for Foreign Individuals

Remuneration income paid by the Centre Authorities and the Participants to foreign nationals and stateless persons in connection with activities carried out within the Centre shall be exempt from personal income tax.

3. Exemption from Property and Land Taxes

Property situated within the territory of the Centre and owned, held or used by the Centre Authorities shall be exempt from corporate property tax and land tax.

4. Customs Duty Exemption

The Centre Authorities and the Participants shall be exempt from customs duties in respect of goods imported for use or consumption within the territory of the Centre.

5. Exemption of Certain Investment Income

Income of individuals and legal entities derived from the following shall be exempt from personal income tax and corporate income tax, respectively:

(a) the disposal of securities, provided that such securities are included in the official list of the Centre Stock Exchange as at the date of disposal;

(b) the disposal of shares or participatory interests in the charter capital of a legal entity which is a Participant of the Centre;

(c) dividends and interest derived from securities included in the official list of the Centre Stock Exchange.

6. Preferential Personal Income Tax Rate for Residents

Personal income derived by individuals who are tax residents of the Republic of Uzbekistan from the Centre Authorities and the Participants, whether under employment contracts or civil law agreements, shall be subject to personal income tax at a rate of 7 per cent.

7. Value Added Tax Exemption

Services provided by the Centre Authorities and the Participants, as referred to in paragraph 3 of this Decree, shall be exempt from value added tax.

At Fairlex Consulting we are always ready to help businesses regarding Uzbek law matters.