President signs decree on tax incentives for construction projects worth over $50 million

A special legal regime of a "regulatory sandbox" is being introduced in the territories listed in the annex to the decree. Incentives will be granted under the "state as investment partner" principle. Legal entities implementing such projects are exempt from land tax and property tax for 20 years on facilities involved in projects with investments of at least $50 million.

The tax on profits from the sale and lease of project facilities will be 1%. The duration of the benefit depends on the volume of direct investment: from $50 million — five years, from $100 million — ten years, from $500 million — 15 years. General contractors and general design organizations will not pay VAT on services provided by foreign individuals and legal entities not operating in Uzbekistan. Investors' dividends from such projects are exempt from tax until January 1, 2040, provided that this money is reinvested in Uzbekistan.

The powers of the Directorate for the Construction of New Tashkent are being extended to the directorates of other special zones. They will be able to independently determine the requirements for planning documentation, the main construction conditions for the sale of land plots, and special technical specifications for individual projects.

The president announced some of the measures on October 12 at a meeting with entrepreneurs working in New Tashkent: the state will reimburse the costs of "green" certification for non-residential facilities with investments exceeding $50 million, a designated representative will be assigned to each major project, and individual agreements outlining the obligations of the parties and the list of incentives will be concluded with investors.