INFORMATION DIGEST OF PRESS OF UZBEKISTAN

2017-06-07

 

 

INFORMATION DIGEST OF

PRESS OF UZBEKISTAN # 111

June 7, 2017

 

 

 

POLItiCs. 1

President Shavkat Mirziyoyev is to attend an upcoming SCO summit in Astana. 1

OFFICIALLY.. 1

Mamarizo Nurmuratov appointed as chairman of Central Bank’s board. 1

INFRASTRUCTURE.. 1

Just an Hour to Embrace Tashkent 1

BUSINESS CLIMATE.. 2

Uzbekistan: Peculiarities of non-residents taxation. 2

International cooperation.. 4

A South Korean company, Heerim Architects, is to develop a project of a multifunctional ice complex Humo Arena in Tashkent 4

CULTURE.. 5

Pushkin poetry festival in Tashkent 5

 

 

 

 

 

 

 

 

POLItiCs

President Shavkat Mirziyoyev is to attend an upcoming SCO summit in Astana

President of the Republic of Uzbekistan Shavkat Mirziyoyev will attend a meeting of the Council of Heads of the member-states of the State of the Shanghai Cooperation Organization on 8-9 June in Astana.

The Heads of SCO member-states are expected to discuss the current state and prospects of further development of the organization, exchange views on the matters of regional and international politics and consider the issue on the presiding country for 2017-2018.

Within the realization of the decisions of the SCO Tashkent summit, a procedure of adopting India and Pakistan as member-states of the organization will be completed in Astana.

The President of Uzbekistan will also take part at the official opening ceremony of the international specialized exhibition “Astana EXPO-2017” and will hold several bilateral meetings with heads of foreign delegations.

(Source: UzA)

OFFICIALLY

Mamarizo Nurmuratov appointed as chairman of Central Bank’s board

On 6 June, Council of Senate of Oliy Majlis of Uzbekistan appointed the chairman of the board of the Central Bank of Uzbekistan.

According to the resolution of the Council, Mamarizo Nurmuratov was appointed as the chairman of the board of the Central Bank of Uzbekistan.

Before this appointment, Mamarizo Nurmuratov was chairman of the Senate Committee on Budget and Economic Reforms. In 2006-2017, he was an advisor to the chairman of the Central Bank.

Nurmuratov worked as hokim of Samarkand region in 2014-2016. He was also the head of the Ministry of Finance of Uzbekistan from 2000 to 2004.

Mamarizo Nurmuratov replaced Fayzulla Mullajanov at the post of the chairman of the board of the Central Bank, who died at the age of 67 in the end of May. Mullajanov headed the Central Bank from 1991.

(Source: UzDaily.com)

INFRASTRUCTURE

Just an Hour to Embrace Tashkent

The President of Uzbekistan Shavkat Mirziyoyev has approved the main parameters of the project on the construction of an electrified high-speed double-track ring railway around Tashkent.

Totaling $320.1 million, the project will be carried out in phases in 2017-2021. Major investments will be channeled from the government budget in the amount of $25.3 million this year, and $159.8 million of centralized state investments will be allocated throughout the entire period of the project.

Two large institutions will also be involved in construction financing. For instance, the Fund for Reconstruction and Development of Uzbekistan will invest $20 million for the purchase of imported equipment, raw materials, construction materials and components, passenger electric trains, as well as for specific construction and installation works that involve foreign contractors. The Chinese Eximbank will acts as a foreign partner with a $115 million loan.

The President assigned to submit a feasibility study of the project to the Cabinet of Ministers for technical approval by October 1, 2018. All its stakeholders are released from payment of customs duties, value added tax for goods, works and services, mandatory contributions and fees to the targeted state funds by January 1, 2022.

Another important resolution of the state leader envisages preparation of the Concept on the Development of the Passenger Transport System in Tashkent for the future, based on the analysis of the best foreign practices.

Experts should envisage regular routes linking the capital with certain towns in the Tashkent region, creating the most favorable conditions for passengers, linking stop points of the double-track ring railway with the Tashkent subway lines, terminal stops and bus stations along its length for suburban and urban bus routes, as well as ensure their optimized traffic schemes.

The project envisages the construction of a total of 26 stations. Trains will run with seven minute intervals, so the whole of Tashkent can be traveled around in just an hour. The length of one line will be 71.2 km, and the total length will exceed 140 km of railways in both directions.

(Source: «Uzbekistan Today» newspaper)

BUSINESS CLIMATE

Uzbekistan: Peculiarities of non-residents taxation

Peculiarities of taxation of non-residents of the Republic of Uzbekistan are determined in Articles 20, 154 and 155-1 of the Tax Code of the Republic of Uzbekistan which settle the relations between nonresidents and residents of Uzbekistan at payment of income to nonresidents gained in the territory of Uzbekistan through permanent establishment or without formation of permanent establishment.  The principles of the taxation of foreign legal entities in Uzbekistan correspond to the international practice. So according to these principles there are two main options of income gaining by the foreign organization and, respectively, two options of its taxation: through permanent establishment and without formation of permanent establishment.

1. Activity through permanent establishment

Permanent Establishment” is recognized as any place through which a non-resident carries out business activities in Uzbekistan, including activities carried out by an authorised person. Permanent establishment of the non-resident in the Republic of Uzbekistan is also recognized as implementation of business activity in the Republic of Uzbekistan which lasts for more than hundred and eighty three calendar days in any consecutive twelve-month period. In case such representation is available, its profit is generally taxed at a base rate as if it was the usual national enterprise..

At the same time, if the foreign company has an authorized person in Uzbekistan, i.e. "the dependent agent", it is considered for the tax purposes that permanent establishment is present. The authorized person is a representative of the foreign organization who has authority to represent its interests and regularly uses it to make contracts on behalf of the organization or to coordinate their essential conditions.

At the same time if the foreign company operate in Uzbekistan through the independent agent (the broker or the commission agent), this fact in itself doesn't lead to formation of permanent representation.

The code especially stipulates some important situations which don't create permanent establishment. In particular, they include:

1) activity of a preparatory or auxiliary character;

2) implementation of activity through the independent intermediary: the broker, the commission agent, the attorney, the professional participant in securities market or any other person acting under the commission agreement or other similar contract and not authorized to sign contracts on behalf of the nonresident of the Republic of Uzbekistan. The independent intermediary is understood as the person acting within the usual (main) activity and being legally and economically independent of the non-resident of the Republic of Uzbekistan;

3) execution  of operations on import to the Republic of Uzbekistan or export from the Republic of Uzbekistan of goods, including within the foreign trade contracts made exclusively on behalf of the non-resident of the Republic of Uzbekistan and associated with purchase of goods in the Republic of Uzbekistan and operations on goods export to the Republic of Uzbekistan;

4) the non-resident of the Republic of Uzbekistan possesses of securities, shares in authorized fund (authorized capital) of legal entities - residents of the Republic of Uzbekistan, and other property in the territory of the Republic of Uzbekistan. If the nonresident of the Republic of Uzbekistan entrusts such legal entity with representative mandate, except for the functions of preparatory or auxiliary character according to point 1 of the present part, such legal entity besides being an independent taxpayer, is at the same time  considered as permanent establishment of the non-resident of the Republic of Uzbekistan;

5) the non-resident the Republic of Uzbekistan provides personnel for work in the territory of the Republic of Uzbekistan to the legal entity -resident of the Republic of Uzbekistan or other non-resident of the Republic of Uzbekistan who carries out activity in the Republic of Uzbekistan through permanent establishment with no signs of permanent establishment provided by a part 3 of the present article if such personnel act exclusively on behalf and for the benefit of the organization where personnel has been sent to.

Besides, the code stipulates rules of the taxation of construction sites.

Permanent establishments submit reports once a year. 

2. The income of nonresidents of the Republic of Uzbekistan not connected with permanent establishment

If the foreign company has no permanent representation to Uzbekistan, it doesn't mean that such foreign company isn't a tax payer of a tax as in case it gains income from sources in the Republic of Uzbekistan, this income is taxed at a payment source. It means that the tax is paid not by the foreign organization, but the resident of Uzbekistan – the income payer (it can be the Uzbek organization or permanent establishment of the foreign company in Uzbekistan), which in this case is a tax agent.

The following is not considered as incomes of non-residents of the Republic of Uzbekistan from the sources in the Republic of Uzbekistan:

- income of non-resident of the Republic of Uzbekistan gained from the foreign trade operations (including goods exchange) carried out exclusively on behalf of this non-resident and related exclusively to procurement (purchase) of goods, and goods import to the territory of the Republic of Uzbekistan;

- income from rendering the services related to opening and managing correspondent accounts of banks - residents of the Republic of Uzbekistan and payments under these accounts, and payments by means of the international payment cards;

- income from work performance, rendering services outside the Republic of Uzbekistan, except for the income from work performance, rendering services provided by a part 3 of article 155 of the Tax Code.

- Deduction of income at the source of payment from legal establishments shall be carried out by the residents of the Republic of Uzbekistan, and  the nonresidents of the Republic of Uzbekistan  carrying out activity in the Republic of Uzbekistan through permanent establishment and paying the income to other non-resident of the Republic of Uzbekistan.

Payer carrying out payment to the non-resident is assigned  responsibility for completeness of deduction and timeliness of tax transfer to the budget.

At the same time, it should be kept in mind that the standard of the international treaty shall be applied if the existing international treaties of Uzbekistan stipulate other rules.

In so doing according to provisions of the Tax Code payment of:

- the income to the non-resident of the Republic of Uzbekistan is made without deduction of income tax of legal entities at a payment source under presence of the certificate witnessing that the non-resident of the Republic of Uzbekistan carries out activity and is registered in the State Tax Administration as permanent establishment of the non-resident of the Republic of Uzbekistan authorised by bodies of the State Tax Administration of the Republic of Uzbekistan  according to income gained from activity which results in formation of permanent establishment according to article 20 of the Tax Code;

- the income to the non-resident of the Republic of Uzbekistan shall also be made without deduction of income tax of legal entities at a source of payment or with application of the lowered rate of income tax of legal entities according to provisions of the international treaty of the Republic of Uzbekistan provided that  the document submitted by the non-resident of the Republic of Uzbekistan issued by competent authority of the foreign state confirming permanent residency of this person in the country the Republic of Uzbekistan has international treaty (agreement) on tax issues with, is available at a source of payment.

In case of payment of the income to foreign banks and the international interbank telecommunication systems confirmation of the fact of permanent residence of foreign bank or the international interbank telecommunication system in the country  the Republic of Uzbekistan has international treaty regulating taxation issues with isn't required if such residence is confirmed by data of public information sources.

The incomes of the nonresident which aren't subject to the taxation at a payment source

The incomes on the loans attracted to finance investment projects paid by banks and lessors of the Republic of Uzbekistan to foreign financial institutions aren't subject to the taxation.

(Source: «Business partner.uz» newspaper)

International cooperation

A South Korean company, Heerim Architects, is to develop a project of a multifunctional ice complex Humo Arena in Tashkent

The commissioning of the first sports facility of this kind in Uzbekistan is scheduled for the next year. The complex will be built by the Singaporean Enter Engineering Pte. Ltd, and ordered by the domestic Wind Rose. The project will be financed at the expense of the customer's private funds.

The new ice complex will combine modern architectural solutions, advanced technologies and traditions of national architecture. Its name is not accidental too - in shape the object will resemble the mythological happiness and freedom bird of Humo.

The sports facility will be four-story. The total area of 74,000 square meters will be occupied by two ice arenas - training and basic. The central hall will accommodate 14,000 people.  It will be multifunctional, that is, available for changing the arrangement of seats during various events. So, for example, in case if it is used for a concert, the capacity of the hall will be about 10,000 people.

The main rink will host hockey matches, short tracking, figure skating, curling competitions. It is also planned to consider the opportunity of organizing tournaments in basketball, volleyball, handball, futsal, boxing, taekwondo and other sports there.

Along with specialized sports facilities, the complex host an indoor playground, gyms, a fitness center, catering facilities, sports equipment stores, a sports museum and other facilities. A four-story parking will be built nearby for the visitors’ convenience.

The South Korean Heerim Architects has also been involved in other large project in Uzbekistan. It is designing the new international terminal of Tashkent airport. The total cost of the project exceeds $430 million.

(Source: «Uzbekistan Today» newspaper)

CULTURE

Pushkin poetry festival in Tashkent

Cooperation between the Republic of Uzbekistan and the Russian Federation is developing consistently in all its areas, including in the cultural-humanitarian sphere.

President Shavkat Mirziyoyev’s state visit to Russia raised the bilateral relations to a new level.

In this country, representatives of various nationalities and ethnic groups live in friendship and harmony. All the necessary conditions have been created for them to keep and develop their traditions and customs, languages and culture and to conduct festivals and ceremonies. This is a result of a policy of humaneness being conducted by the state.

In accordance with the 2017-2021 Action Strategy for five priority areas of the development of the Republic of Uzbekistan, the work on strengthening inter-ethnic accord and tolerance is being continued in a consistent fashion.

These qualities found expression in a ceremony that took place on the capital city’s Peoples Friendship Avenue and that was devoted to the 218th birth anniversary of great Russian poet Aleksandr Sergeyevich Pushkin.

Representatives of various ministries and departments, public organizations, national cultural centres, diplomats, writers, poets, literary scholars, teachers and young people gathered near the Pushkin statue.

The chairman of the Writers Union of Uzbekistan, M.Ahmedov; the ambassador extraordinary and plenipotentiary of the Russian Federation, V.Tyurdenev; the chief of the Russian cultural centre of Uzbekistan, A.Aristov; and others have said that literature has an important place in bringing up young people in the spirit of values that are common to all mankind and in strengthening accord and magnanimity in society.

Literature and art play a special role in Uzbek and Russian peoples’ friendship. Russians know well the heritage of Uzbekistan’s scholars, writers and poets, and in this country people learn the Russian language and literature with a great deal of interest. There is Alisher Navoiy’s statue in Moscow, and in Tashkent there is this statue of Aleksandr Pushkin.

Uzbek readers become familiar from their childhood with Pushkin’s works. Ideas of freedom, honour and dignity as paramount values and love for life are the main themes of this great poet’s poems.

The creative activity of this poet had a colossal influence on the development of Russia’s culture and the literary Russian language. Pushkin’s works were translated into the Uzbek language by Oybek, Mirtemir, Hamid Olimjon, Abdulla Oripov, Erkin Vohidov and other poets and writers of this country.

The place where the Pushkin statue was put up has been named People’s Friendship Avenue. And the park adjacent to this avenue is called Garden of Friendship, which conforms to the spirit of the poetry and views of the great poet.

At the ceremony, excerpts from Pushkin’s poems were read out.

Participants in the ceremony laid flowers at the poet’s statue.

“In Uzbekistan, it has become a good tradition to widely celebrate birth anniversaries of Pushkin. The putting up of this Pushkin statue on this beautiful avenue at the initiative of the First President of the Republic of Uzbekistan, Islam Karimov, is a practical indication of the good work being carried out in Uzbekistan towards strengthening international friendship and cooperation between our countries,” says the Russian Federation’s ambassador extraordinary and plenipotentiary in Uzbekistan, Vladimir Tyurdenev.

“The participation of representatives of various nationalities in this event, which is a festival of poetry, shows that Pushkin’s creative works are very much respected in this country. This is also proof that our people love literature,” says Ruslan Gafarov, a merited artiste of Uzbekistan and soloist of the state academic grand theatre of Uzbekistan.

“Both Alisher Navoiy and Pushkin depicted high human feelings and qualities and love for the Motherland and people,” says a representative of the Yangiyol town department of the Russian cultural centre and literature teacher, Lyubov Shcherbakova.

At this event, a music composition was performed by artistes of the Alisher Navoiy state academic grand theatre of Uzbekistan and an artistic group at the Russian cultural centre of Uzbekistan.

Poetic evenings and enlightenment events and conversations are taking place throughout the country on the occasion of Pushkin’s birth anniversary.

(Source: UzA)

 

 

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