PD-4434 On additional measures aimed at stimulation of foreign direct investments attraction

Note that during the years of independence, in Uzbekistan there has been formed a favorable investment climate, legislatively established an extensive system of privileges, preferences and safeguards to protect the rights and interests of foreign investors

As a result, in the republic there have been established and successfully operate more than 4.2 thousand enterprises with foreign investment in the leading sectors of the economy. Each year, there is being mastered more than 3.0 billion foreign investments, mostly straight, which account for over 26.6 percent of total investment in the economy, which is a concrete indication of the growing interest and confidence of foreign investors in the stability and reliability of the economy, the prospects for its development.

Meanwhile, the ongoing global financial and economic crisis, increased competition in the global and regional investment markets require additional measures to create a more favorable investment climate in the country, encouraging attraction of foreign investments for implementation of projects on modernization, technical and technological renewal of production, as well as elimination of bureaucratic barriers and obstacles in working with foreign investors and prevent unlawful interference by government and regulatory authorities in activities of enterprises with foreign investment.

In order to create the most favorable investment climate for foreign investors, offering direct investment in developing high-tech industries, to strengthen incentives for attracting foreign investments and modern technologies in regions of the country, further strengthening the guarantees and privileges for foreign investors and enterprises with foreign investment;

  1. Take note that the legislation of the Republic established an extensive system of guarantees, benefits and privileges for foreign investors and enterprises with foreign investment in accordance with Appendix № 1.
  2. Establish that newly created enterprises with foreign investment, in which the contribution of foreign investors in the form of hard currency not less than USD 5 million, tax laws may be applied during the 10 years since their legal registration rules and regulations in the payment of income tax law those value-added tax (turnover of sales of goods and services), tax ua property tax on improvement and development of social infrastructure, unified social tax, single tax payment, as well as mandatory contributions to the Republican Road Fund and reconstruction, repair and equipping of educational and medical institutions operating on the date of their registration.
  3. Set the order in which the investment in the project worth over U.S. $ 50 million and the share of foreign investors is not less than 50 percent of the construction of the necessary external, outside the production site, engineering and communication networks at the expense of budget funds and other domestic sources of financing.
  4. Distribute the II quarter of 2012 tax credits established by the Decree of the President of the Republic of Uzbekistan dated April 11, 2005 № UP-3594 “On additional measures to stimulate the attraction of private foreign direct investment”, the enterprises with foreign investment:

operating in the sectors of the economy, in accordance with Annex № 2;

placed in all regions of the country, except the city of Tashkent and Tashkent region.

  1. Strictly prohibited and considered illegal establishment of ministries, public authorities in the field, law enforcement and regulatory agencies, commercial banks additional requirements called constraints associated with the activities of foreign investors and enterprises with foreign investment.

General Prosecutor of the Republic of Uzbekistan to establish tight control over the unconditional observance of all the organs of state and economic management of existing legislation to protect the rights and interests of foreign investors, enterprises with foreign investment and to take effective measures to prevent violations of established laws and bring perpetrators to justice officials.

  1. Grant the right of the State Commission for conducting tenders for sale of state assets to foreign investors (Azimov RS) to implement at the request of foreign investors to set up enterprises with foreign investments are illiquid items on the balance of public authorities in the field of “zero” redemption cost without the competition by entering into direct contracts with the investor’s specific investment obligations.
  2. Ministry of Foreign Affairs. Ministry of Internal Affairs of the Republic of Uzbekistan to provide on request ministries, business associations clearance officers and specialists of foreign companies involved in investment projects, and multiple entry visas valid for 12 months.
  3. Cabinet with the assistance of the Ministry of Economy. Ministry of Finance. Ministry of Foreign Economic Relations, Investments and Trade, State Committee on Statistics, Central Bank of the Republic of Uzbekistan in a systematic manner to ensure broad access to the established procedure of foreign investors to the economic information necessary for the implementation of investment activities, including information about the State budget and its execution, the monetary and credit policy, terms of foreign trade, and others.
  4. Ministry of Justice and the Ministry of Economy. Ministry of Foreign Economic Relations, Investments and Trade of the Republic of Uzbekistan to establish a systematic monitoring of the implementation of the legislation on guarantees, privileges and preferences for foreign investors and enterprises with foreign investment and on a quarterly basis to the Cabinet of Ministers of the information as part of non-compliance with the ministries, departments and other performers provided privileges and preferences.
  5. Make changes and additions to the Decree of the President of the Republic of Uzbekistan of April 11, 2005 LaUP-3594 “On additional measures to stimulate the attraction of private foreign direct investment” in accordance with Annex № 2.

Ministry of Economy, Ministry of Foreign Economic Relations, Investments and Trade jointly with the Ministry of Justice of the Republic of Uzbekistan and other concerned ministries’ and agencies, and one month to the Cabinet of Ministers proposals on changes and amendments to legislation arising from this Decree.

  1. To entrust the control over the execution of this decree to the Prime Minister of the Republic of Uzbekistan Sh.M. Mirziyoev.

 

Islam Karimov, President of the Republic of Uzbekistan

10 April 2012.