Market assessment. Why invest in Uzbekistan?

• Sustained economic growth and political stability;
• Great fast-growing market of Uzbekistan, Central Asia and CIS countries;
• Large stocks of commodity reserves, mineral and energy resources;
• Highly skilled and inexpensive labor force;
• The favorable investment climate, providing a wide range of privileges to foreign investors;
• Developed financial and telecommunications sector;
• Highly developed transport infrastructure;

Investment Opportunities in Uzbekistan

• Creation of production in Uzbekistan offers foreign companies access to markets in rapidly developing countries of Eurasian economic community and the CIS free trade regime:
  – CIS countries-280 ml. people
  – Countries of Eurasian economic community — more that 181ml.people
• Agreement on Free Trade Area (Russia, Ukraine, Belarus, Kazakhstan, Georgia, Armenia, Azerbaijan, Moldova, Kyrgyzstan, Tajikistan, Turkmenistan)
• Countries of Central Asia- 55 ml. people
• Uzbekistan – 26,5 ml. people ( 50% of Central Asia)

Benefits for Foreign Investors:

• Rate reduction or exemption from tax on profit from 2 to 7 years depending on the volume of foreign investments and activities;
• Reduction or full exemption from property tax during the growth of exports of goods investor, exemption from income tax on exported goods;
• Exemption from land tax for 2 years from the date of registration of enterprises with foreign investment;
• exemption from income tax for 3 years since the start of production and 50% tariff reduction for 2 years if production is located in the countryside;
• exemption from payment of customs duties on manufacturing equipment when imported as a contribution to share capital;

Based on Presidential Decree of 11 April 2005, foreign investors are exempt from the following types of taxes:

• Tax on income (profit) on the core activities;
• Property tax;
• Tax on the micro;
• Tax on the development of social infrastructure;
• Road tax;
• Ecology tax;

Benefits apply when investing:

• $300 000—$3 ml. — for 3 years
• $3 ml.- $10 ml — for 5 years
• More 10 ml. — for 7 years