Senators reviewed draft amendments to some legal documents due to the adoption of the main tax and budget policies for 2023. According to the proposed amendments, relevant amendments are to be introduced to the current Customs and Tax Codes, the Investments and Investment Activities Law.
In accordance with the amendments to the Tax Code, the rate of value added tax (VAT) will be reduced from 15 percent to 12 percent. As a result of this reduction, businesses will have 14 trillion soums of funds at their disposal, which they can use to further expand their activities.
The turnover tax rates are being unified from 4% to 25% for 14 types of activities while maintaining a single rate of 4%.
Payers of turnover tax will be entitled to choose to pay a fixed tax in the amount of 20 million soums per year when the turnover is up to 500 million soums, and 30 million soums when the turnover is above 500 million soums in equal monthly installments. In this case, taxpayers are proposed to be exempted from mandatory accounting and submission of certain reports, as well as payment of dividend tax on their net profit.
The amendments envisage important changes aimed at encouraging the development of SMEs, and it is established that the rate of profit tax will be reduced by 2 times for 1 year for businesses belonging to the small business category with a turnover of more than 1 billion soums. The profit tax rate is reduced by 2 times for 2 years for businesses who have moved from small business to medium business category.
In order to create additional relief for taxpayers, starting from January 1, the amount of non-taxable income when individuals send their income to cover mortgage loans is being increased from the current 15 million soums to 73.6 million soums.
Regardless of the share of income from export (currently, if it is more than 15 percent of income), profit tax and turnover tax shall not be taxed on the part of exported goods (services).
The fixed period of tax debt collection at the expense of property is being extended from the current 30 days to 60 days.
Small and medium-sized businesses will be entitled to pay tax payments in installments for 6 months without interest.
In order to ensure the stability of budget revenues, the rates of property tax from individuals, tax for the use of natural resources and non-agricultural land tax, excise tax, rates of some taxes are indexed within the inflation rate.
