To improve the taxation of property and land plots, the Decree of the President of the Republic of Uzbekistan “On further improvement of resource taxes and property tax” was adopted. The document provides for a number of innovations.
The right to set land tax rates (with the exception of agricultural land) has been granted to local government bodies:
– the right to set the rates of land tax on non-agricultural land depending on their economic development was granted to the Jokargy Kenes of Karakalpakstan, Kengashes of people’s deputies of regions (except for the city of Tashkent) – from 0.5 to 2.0 coefficients.
– the right to introduce decreasing and increasing coefficients in the amount of 0.7 to 3.0 to the land tax rates, taking into account the prestige of the region (quarter, massif, makhalla, street) – are received by the Kengashes of people’s deputies of districts and cities. At the same time, the amount of land tax should not exceed the amount of tax charged for 2020 by more than 1.3 times. This will reduce social tension and prevent a sharp increase in the tax burden on individuals.
The mechanism for calculating property tax and land tax based on the cadastral value close to the market value of real estate objects (buildings, structures and land plots) is introduced in two periods:
– in 2021-2023 for real estate objects of the housing stock (apartments, individual houses, country houses), as well as land plots occupied by these objects;
– in 2022-2024 – for certain non-residential real estate objects, as well as land plots occupied by these objects.
To increase the efficiency of the use of land and water resources, extracted minerals from the subsoil by:
– introduction of a unified procedure for taxation of agricultural land;
– keeping the tax rates for the use of water resources at the level of 2020 for public utilities. Thus, a single tax rate of 40 soums per 1 cubic meter. set to the volume of water used for irrigation of agricultural land and fish farming (cultivation), including dekhkan farms;
– the amount of tax on property of individuals, calculated on the basis of the cadastral value determined in 2018, cannot exceed the amount of tax accrued for 2020 by more than 1.3 times;
– submission by subsoil users in electronic form through the personal account of the taxpayer simultaneously with the annual tax reporting on the tax for subsoil use – submission of a report on the movement of mineral reserves;
– granting tax authorities the right to submit an application to the authorized bodies to revoke or suspend a license in the event of a systematic violation by a subsoil user of tax legislation and (or) failure to submit a report on the movement of mineral reserves.
The implementation of these measures will ensure a fair system of taxation of property objects, land plots, water resources and subsoil, effective and rational use, as well as the completeness of the property tax, land tax, tax for the use of water resources and tax for the use of subsoil to the budget.
The decree envisages the introduction of amendments and additions to the Tax Code (in terms of norms that come into force on 1 January 2021). Also, close interaction (taking measures, collecting information and others) will be organized between the ministries and departments involved in the mechanism of taxation of real estate objects based on market value, with the involvement of international financial institutions and foreign experts.
