July 11, 2019

Permanent establishment of non-residents in the Republic of Uzbekistan

Permanent establishment of a non-resident of the Republic of Uzbekistan is a special tax status of a non-resident performing activity in the territory of the Republic of Uzbekistan. In accordance with the Tax Code of the Republic of Uzbekistan a permanent establishment of a non-resident does not require foundation of a legal entity in any legal form whatsoever.

A permanent establishment appears in case of performance of an entrepreneurial activity by the following ways:

1) through an authorized person, representing interests of a non-resident in the Republic of Uzbekistan;

2) performing entrepreneurial activity during more than 183 calendar days within any consecutive 12-month period;

3) in case of existence of any place of performance of the activity (an office, a warehouse, a cabinet or other place)[1].

Recording of a permanent establishment of the Republic of Uzbekistan with the state tax bodies

Non-residents – legal entities of the Republic of Uzbekistan performing activity in the Republic of Uzbekistan through a permanent establishment are subject to recording with the state tax bodies at the place of location or performance of activity of the permanent establishment.

A non-resident performing activity in Uzbekistan through a permanent establishment is obliged no later than 183 days from the commencement of the activity to submit to the state tax bodies the following documents:

1) an application for recording as a permanent establishment;

2) a contract or a power of attorney on behalf of the non-resident for performing activity in Uzbekistan;

3) a contract fulfillment of obligations whereunder entails foundation of a permanent establishment.

If a non-resident of the Republic of Uzbekistan is in possession of several permanent establishments, it is obliged to register each permanent establishment with the appropriate state tax bodies.

But the fact of recording of permanent establishment with the state tax body is not the moment of foundation of the permanent establishment. A permanent establishment of a non-resident shall be deemed to be established with no regard to the will of a non-resident to establish it or not[2].

Opening of bank accounts

Permanent establishment of a non-resident of the Republic of Uzbekistan is entitled to open bank accounts both in national (soum) and in foreign currency.

[1] The legislation of the Republic of Uzbekistan foresees cases when performing of the activity of a non-resident in the Republic of Uzbekistan does not entail appearance of a permanent establishment.

[2] The legislation of the Republic of Uzbekistan determines the certain criteria for identification of appearance and termination of a permanent establishment.