October 9, 2023

A business development bank has been established in Uzbekistan

On 04.09.2023, the Decree of the President of the Republic of Uzbekistan No. PD-292 “On measures to implement the tasks defined in the open dialogue of the President of the Republic of Uzbekistan with entrepreneurs in 2023” was adopted.

The “Business Development Bank” (hereinafter referred to as the “Bank”) will be established on the basis of the joint-stock commercial bank “Kishloq Kurilish Bank”. Under it, the following organizations will be formed:

–  “Small Business Development Fund” LLC;

– 14 small business assistance centers in the regions.

In order to support and develop small business projects, the Bank will allocate loans for up to 7 years.

For business entities with positive credit and tax histories, the collateral requirement will be decreased by 50%.

The program “140 advanced industrial enterprises” will be implemented in various industries.

The projects included in the program will be financed by credit funds in foreign (at a rate of 4% per annum) and national (at a rate of 10% per annum) currencies for up to 10 years.

An electronic platform for digitalization of the program implementation processes will be launched.

When returning a negative amount of VAT, it is prohibited to apply the tax gap coefficient.

The suspension of the special certificate of VAT registration will be canceled.

The maximum amount of income of business entities that pay monthly advance payments on income tax increases from 5 billion soums to 10 billion soums.