Shavkat Mirziyoyev signed a decree on November 10 to support major urban development projects in New Tashkent and other regions of Uzbekistan.
The decree aims to provide comprehensive support for projects worth $50 million or more and remove administrative and bureaucratic barriers to their implementation. The new measures are expected to increase the investment appeal and tourism potential of the regions where such projects are carried out.
A special legal regime known as a “regulatory sandbox” is being introduced in New Tashkent and other designated special zones to support major urban development projects.
The powers of the New Tashkent Construction Directorate will be extended to other directorates responsible for construction in the special zones. In particular, they will be authorised to:
- independently set requirements for planning documentation related to territorial development;
- establish key construction conditions when allocating land plots;
- set special technical requirements for individual projects, among other powers.
The regulatory sandbox also provides businesses with a range of benefits and incentives based on the principle of “the state as an investment partner”. Companies implementing major projects in the special zones will be exempt from property and land taxes for 20 years.
The corporate income tax rate on revenue from renting out and selling properties will be set at 1%. The duration of this reduced rate will depend on the investment amount: five years for investments of $50−100 million, 10 years for $100−500 million, and 15 years for investments exceeding $500 million.
General contractors and lead design organisations will be exempt from VAT on payments for services provided by foreign organisations and individuals. In addition, dividends earned by investors from construction projects and reinvested in Uzbekistan will be exempt from taxes until 2040.
The English version of this material was generated with the assistance of AI translation tools and may differ slightly from the original text.
