Tax breaks for enterprises with foreign participation and foreign investment:

enterprises with investments of USD 300,000 and more are exempt from single tax payment, income (profits) tax, property tax, infrastructure development tax, road tax for three to seven years depending on the amount invested; however, the investor’ share must be at least 50%; the investment must be made in hard currency or new modern equipment; tax savings are re-invested; there is no sovereign guarantee, and enterprises are located in specific regions (Karakalpakstan, Djizak, Kashkadarya, Syrdarya, Surkhandarya, Khorezm, and rural areas of Navoi, Andijan, Namangan and Ferghana). Investments eligible for this privilege should be in the following economic spheres: 1) electronics and computer parts production, 2) light industry, 3) silk industry, 4) construction materials, 5) industrial production of poultry and eggs, 6) food industry, 7) production of meat and dairy products, cheese and meat fat, 8) chemical and pharmaceutical production.

joint ventures with foreign participation in the oil and gas sector carrying out exploration works have a seven year tax holiday from income tax from the extraction start date and thereafter a 50 % reduction, and exemptions from property taxes and dividend taxes (President’s Decree, On means for attracting foreign direct investments to exploring and extraction of oil and gas, UP-2598, 28/04/00)

certain kinds of technological equipment and spare parts imported as a contribution to the statutory capital or for an enterprise’s own use is exempt from VAT and customs duties (Part 6, Article 71 Tax Code,24/04/97)

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