On July 20, President Shavkat Mirziyoyev signed the Additional measures to support individuals, restaurant, trade and services businesses to mitigate the negative impact of the coronavirus pandemic decree.

According to Uzbekistan 24, during the period of lockdown measures in Q2 of 2020, 1,056 enterprises (15%) saw their turnover reduced by 5.5 trillion soums (US$ 540 mln) to the Q1, and 3,000 enterprises (41.6%) had a decrease in the number of employees, by 14.8 thousand, in 5,620 enterprises (78.5%), the size of the wage fund decreased by more than 65 billion soums.

According to the document, from July 1 to December 31, 2020:

• restaurants and enterprises specializing in the provision of premises for rent (8%) shall be exempt from paying turnover tax;
• individuals shall be exempted from paying tax on income received from the lease of real estate;
• procedure for applying, for tax purposes, the minimum rental rates for individuals who rent out property (premises and motor vehicles) is suspended.

Landlords are recommended to decrease rent in 2020, given the provided tax reliefs.

In the period from April 1 to December 31, restaurants shall be exempt from paying fees for the right to carry out retail trade in alcoholic beverages.

In addition, the reduced duty for wholesalers of alcoholic beverages from 5% to 3% established by presidential decree of March 19, 2020 (UP-5969) shall be extended until December 31.

Restaurants shall be allowed to deliver alcoholic beverages.

From July 1, the maximum average annual number of employees for restaurants will increase from 25 to 50 people and they shall be classified as small enterprises, with the extension of benefits and reliefs they are granted as small businesses.

In 2020, in the cases determined by the State Tax Committee, no penalty shall be imposed for failure to submit tax report within the timeline established by tax legislation, if no more than 5 days have elapsed from the deadline for submitting tax report.

Until December 31, the tax reliefs and waivers established by the presidential decree of May 18, 2020 (UP-5996) shall be extended, namely:

a) exemption from property tax and land tax for:

• small business entities;
• markets and shopping malls, cinemas, restaurants, public transport enterprises, sports and recreation facilities, as well as legal entities engaged in transportation of passengers, provision of consumer services, premises for rent, including for banquets;

b) the social tax rate shall be cut from 12% to 1% for SMEs, with the exception of manufacturers of excisable products, state enterprises, legal entities with a state share in the authorized capital in the amount of 50 percent or more;

c) deferral of customs duties and excise taxes levied on the import of goods, except for consumer goods, provided to SMEs operating at least one year before the day of contacting the customs authorities, with the subsequent payment of the deferred amount in equal installments within 120 days;

d) to suspend the collection of taxes, penalties, and accrued fines for violation of tax legislation from SMEs as of May 15, 2020.

The validity of qualification certificates of auditors, realtors, appraisers, actuaries, managers of pharmacies and their branches, employees of tourist organizations and guides, teachers of foreign languages, expiring from March 1, shall be extended until the date of the next qualification exam.

Allowances for families with children under the age of 14, as well as allowances for mothers for caring for a child until the age of 2 years, are not included in total income when calculating personal income tax.

Until July 1, 2021, restaurants received the right to place summer terraces in the adjacent territories free of charge by notifying the local authorities. During this period, trade is also allowed through car stores, car dealerships, caravans, tankers and food trucks without concluding an agreement with local authorities, but with notification of the tax authorities.