November 5, 2021

Tax benefits for the purchase of real estate

On November 2, 2021, the Resolution of the President of the Republic of Uzbekistan No. PP-5274 “On improving the mechanisms for deferring the payment of taxes by domestic and foreign investors” was adopted. According to this Resolution, from January 1, 2022, business entities acquiring property rights to land plots and (or) buildings and structures with a total area of more than 1000 m2, for a period of 6 months, are granted the right to defer payment of taxes accrued on property tax and land tax.

At the same time, the deferred amount of taxes is determined in the amount of taxes calculated based on the value of land plots, buildings and structures that have passed state registration.

It should be noted that:

  • the right to delay the payment of taxes is carried out within 3 months from the date of state registration of the property right with the notification of the tax authorities and without requesting security for its payment (pledge);
  • when selling or leasing a land plot and (or) buildings and structures during the period of deferral of tax payments, the amount of taxes calculated during the period of deferral of property tax and land tax is charged in full.

This benefit does not apply to enterprises with a state share of more than 50%, subsoil users, producers of excisable products and business entities that are part of the group of taxpayers with an increased risk of violating tax legislation.