April 7, 2022
Benefits and preferences for IT specialists in Uzbekistan
2. How to become a resident of IT Park
3. Rights and obligations of an IT Park resident
4. Privileges of an IT Park resident
5. Revocation of IT Park resident status
- Decree of the President No. UP-5099 dated 30.06.2017 “On measures to radically improve conditions for the development of the information technology industry in the Republic”;
- Resolution of the Cabinet of Ministers No. 589 dated 15.07.2019 “On measures to organize the activities of the technological park of software products and information technologies”.
Uzbekistan has introduced a number of measures to support specialists in the field of information technology.
In particular, support measures began in 2017 with the adoption of the Decree of the President No. UP-5099, according to which a Technological park of software products and Information Technologies (“IT Park“) was created, and a number of preferences were introduced for residents of the IT Park.
IT Park is an organizational and legal formation operating on the principles of extraterritoriality within the territory of the Republic of Uzbekistan, with the placement of IT Park residents throughout the republic to create the most favorable conditions for the development of information technology products. Within the framework of the functioning of the IT Park, the IT Park Directorate has also been created, which is endowed with the following powers[1]:
- attract specialists, including foreign ones, on a contractual basis as consultants, without conducting tender (competitive) bidding;
- independently develop and approve the staffing table, determine the conditions of remuneration and material incentives for employees of the Directorate in a differentiated manner, depending on the degree of complexity, quality and volume of work performed.
In addition to the abovementioned powers, the Directorate also:
- organizes the acceptance of applications from legal entities for obtaining the status of a resident of IT Park, and also decides on registration as a resident of IT Park with their inclusion in the Unified Register of Residents and the issuance of a corresponding certificate of assignment of resident status;
- organizes the examination of business plans submitted by legal entities and initiators of startup projects;
- approves the regulations and the composition of the Expert Council[2];
- provides on a contractual basis to residents of the IT Park, other economic entities for rent and sublease equipment, laboratory, experimental production facilities, office, training facilities, conference halls, auditoriums and other premises;
- assists in the organization of training and advanced training of personnel in the field of information technology (programming, artificial intelligence, e-commerce, etc.);
- organizes media coverage of the activities of IT Park and its residents;
- prepares and publishes informational and analytical materials within its competence;
- provides financial, legal or other consulting support to legal entities starting their activities in the process of drafting contracts with investors and creditors;
- assists IT Park residents in attracting investments for their startup projects;
- organizes the promotion of products and services of IT Park residents in domestic and foreign markets;
- organizes and conducts international fairs and exhibitions of information technology products produced by IT Park residents and other business entities, as well as assists in organizing the participation of IT Park residents in international seminars, conferences and other events held on a national and international scale;
- decides to deprive legal entities of the IT Park resident status;
- and other in accordance with its charter.
2. How to become a resident of IT Park
- To have registration in the territory of the Republic of Uzbekistan as a legal entity;
How to establish a legal entity in Uzbekistan, you can find here.
- to carry out the type (types) of activity in accordance with the List;
- to have economically sound business plans according to the types of activities specified in the List.
The business plan specifies specific measures for the implementation of one or more of the listed activities according to the List, the types of services provided and their scope, the justification for the need for their implementation, the monetization model of the proposed project, the results of the planned financial and economic activities. The form of the business plan and its requirements are approved by the Directorate.
If the above three requirements for registration as a resident are met, the applicant submits an application via a web portal with an attachment of the business plan proposed for implementation as an IT Park resident. The applicant has the right to withdraw the application within 3 working days from the date of submission of the application to the Directorate, notifying it in writing.
The submission of an application by a legal entity, after filling out all the necessary forms on the web portal, is its consent to the conclusion of an agreement on the terms of operation of an Innovation Center resident in the event of a decision to register a legal entity as a resident.
Within 18 working days, the submitted documents and application are reviewed, and a decision on registration is made.
The grounds for refusal to register the applicant as a resident of IT Park are:
- non-elimination of inconsistencies identified in the documents submitted by the applicant within the specified period;
- implementation of activities in obsolete, unpromising or insignificant areas, confirmed by the conclusion of the Expert Council;
- the business plan proposed for implementation does not correspond to the areas of activity, or its implementation may go beyond the established areas of activity;
- the presence of unfulfilled obligations of a legal entity or other related persons to the IT Park under previous agreements on the terms of operation of a resident of the Technopark.
Within 3 working days after the decision on granting the status of a resident of the Technopark is made, the Directorate:
- makes a corresponding entry on the registration of a legal entity in the Unified Register of Residents;
- issues to a legal entity a certificate of its registration as an IT Park resident;
- sends to the State Tax Committee and the State Customs Committee of the Republic of Uzbekistan, the commercial bank servicing the legal entity, an official notification of registration of the legal entity as a resident of IT Park.
When a legal entity is reorganized in the form of transformation, the status of an IT Park resident passes to the reorganized legal entity from the date of its state registration, while retaining all rights and previously assumed obligations. At the same time, within ten days after the state registration, a legal entity applies in writing to the Directorate for making changes to the unified register of residents and other documents, this procedure is also applied when changing the name of the legal entity.
3. Rights and obligations of an IT Park resident
| No.
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Rights of an IT Park resident
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Obligations of an IT Park resident
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| 1. | to pay dividends in foreign currency in non-cash form to international payment cards on the territory of the Republic of Uzbekistan within the limits of receipts from the export of goods (works, services)
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to carry out exclusively the types of activities specified in the justified business plan
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| 2. | to pay salaries to foreign specialists in foreign currency in non-cash form to international payment cards opened abroad within the limits of receipts from the export of goods (works, services).
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comply with the agreement on the terms of the resident’s activity concluded by him with the Directorate
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| 3. | to export works and services for foreign currency through online stores without an export contract
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provide information about their activities in the form and terms approved by the Directorate, including copies of statistical and tax reports, through the Directorate’s web portal
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| 4. | monthly, no later than the 20th day of the month following the reporting period, to transfer to the deposit account on demand of the Directorate deductions in the amount of one% of total income
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| 5. |
annually, until July 1 of the year following the reporting year, to conduct a mandatory audit of financial and economic activities and audit of a special issue and send one copy of the audit report and audit opinion to the Directorate via the web portal
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| 6. | to carry out new types of activities not specified in the business plan submitted by a resident of the Technopark, after approval by the Directorate of the new (additional) business plan
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| 7. | annually provide the Directorate with information about the ongoing training courses in information technology, if any, as well as coordinate the training program within these courses
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4. Privileges of an IT Park resident
First of all, residents of IT Park are exempt until January 1, 2028 from:
- payment of all types of taxes and mandatory contributions to state trust funds, as well as social tax;
- payment of customs duties (with the exception of customs duties) for equipment imported for own needs, components, parts, assemblies, technological documentation, software not manufactured in the Republic of Uzbekistan.
In addition, income in the form of wages received before January 1, 2028 by employees under employment contracts with residents of IT Park:
- are taxed on personal income at a fixed rate of 7.5 percent;
- are not included in the total annual income of individuals determined for tax purposes (UP-5099 dated 30.06.2017).
In addition, IT Park offers secured offices from 15 sq. m. with subsidized rent. The premises are equipped with high-speed Internet and uninterrupted power supply.
In addition to the abovementioned, according to the information on the IT Park website, a number of benefits for IT specialists and investors will be introduced from April 1. In particular, this visa grants the right of unhindered entry into Uzbekistan for 3 (three) years. In addition, holders of such a visa will be able to receive the following benefits and preferences:
- obtain a residence permit in a simplified manner;
- get access to social services (medicine and education) on an equal basis with citizens of Uzbekistan;
- the tax rate on dividends will be set at 5% instead of 10%;
- it will not be required to obtain confirmation of the right to work, it will be enough to receive a PINI.
According to unofficial information, an IT Visa will be issued to:
- investors intending to open a company in Uzbekistan, make a venture investment in a startup project or share their experience in the field of information technology;
- founders of residents of the IT Park;
- IT specialists whose annual income for the last 12 months is the equivalent of at least 30 thousand US dollars.
To obtain an IT Visa, applicants will have to provide:
- summary of its activities;
- Information about planned projects in Uzbekistan (for investors);
- income information for the last 12 months (for investors and IT specialists);
- Documents confirming the establishment (participation) in the IT Park resident company for the last 6 months.
Based on the above data, the IT-Park issues an opinion to the applicant on compliance with the requirements of the IT-Visa.
An application for an IT-Visa is submitted to the consular offices of Uzbekistan abroad or the internal affairs bodies at the place of registration of a foreign citizen in Uzbekistan.
IT-Visa is issued within three days.
It is important to note that the abovementioned information about IT Visa and the benefits and preferences that it implies is not official information as of April 7, 2022. Particularly, the regulatory document, which regulates the issues related to IT-Visa, according to unofficial information, is at the signing stage.
5. Revocation of IT Park resident status
- inconsistency of the actual activity of the resident with the types of activities specified in the List;
- non-fulfillment of obligations under the agreement on the terms of the resident’s activity with the Directorate;
- recognition of a resident as insolvent (bankrupt);
- if a resident voluntarily renounces the status of a resident;
- failure to submit information on its activities, tax and statistical reports, business plan, as well as audit report and audit opinion within the established time limits, or providing false information in them;
- failure to comply with the obligation to make deductions to the deposit account on demand of the Directorate in the amount of one percent of total income;
- when reorganizing a legal entity;
- other grounds provided by the legislation.
Depriving a legal entity of the status of an IT Park resident does not entail termination of the resident’s obligations.
[1] The Directorate is a legal entity in the form of an LLC that carries out operational management of IT Park activities. To fulfill the assigned tasks, the Directorate has the right to act as a founder or otherwise participate in the authorized fund (authorized capital) of other legal entities, to create representative offices and branches in accordance with the procedure established by law.
[2] A body created under the IT Park Directorate from among qualified specialists of ministries and departments, scientific institutions, higher educational institutions and other specialists in order to analyze the business plans of legal entities applying for resident status, as well as residents of the IT Park