As of January 1, 2019, property tax, land tax and water resources are to be paid to all businesses, including legal entities with a turnover of up to 1 billion soums.
Accordingly, this is also the case with a completely new tax mechanism. In a way that is acceptable to all. That is, the property tax rate for legal entities is still 2%, not 5%.
So, how does the introduction of this regime benefit? What is the purpose of this?
It is noteworthy that the main purpose of introducing such a procedure is not to impose additional taxes on entrepreneurs, but rather to ensure the efficient and rational use of their property.
From January 1, 2019, micro-firms and small-scale enterprises have become property tax payers, regardless of the number of employees and sales volumes. They have not paid this tax before. The only condition is the existence of an object of taxation. There are current tax payments. They are paid based on current payments data, the expected amount of tax is calculated based on the estimated average annual property tax rate and tax rates.
According to the Tax Code, the property tax payers of legal entities are:
Legal entities possessing taxable property on the territory of the Republic of Uzbekistan – residents of the Republic of Uzbekistan;
Legal entities having real estate in the territory of the Republic of Uzbekistan – non-residents of the Republic of Uzbekistan.
According to the Tax Code, the tax base for the property tax for legal entities includes:
– for real estate – average annual residual value. The residual value of real estate is defined as the difference between the initial (recoverable) value of this property and the amount of depreciation calculated using the methods determined in the taxpayer’s accounting policy;
– for the objects of construction in progress and non-commissioned in the statutory (fixed) terms – the average annual cost of uncompleted construction and uninstalled equipment.
– The taxable base is the average annual value of this property in respect of real estate objects of non-residents of the Republic of Uzbekistan.
This is important!
Payment of property tax for legal entities does not depend on turnover. It is paid by all the taxable entities.
What are the current property tax payments?
Microfirms and small businesses pay current payments at the rate of one fourth of the annual tax before the 25th day of the quarter. That is, until March 25, June 25, September 25, and December 25.
Taxpayers other than micro firms and small businesses pay them up to 10th of every month at the rate of 1/12 of the annual tax amount. There is no violation if you pay taxes by 10:00 pm on 10th day.
Property tax on construction in progress within the statutory period is paid at double rate.
During the tax period, taxpayers pay current tax on property of legal entities. The amount of current payments is calculated based on the taxable base, that is, the average annual residual value of the property and the tax rate set up by January 10 of the current tax period (newly established not later than thirty days from the date of state registration) and the district (city). ) Will be provided to DSI.
As of May 1 of the current year, 10 337 property tax payers were registered in the capital, which is 8,507 more than last year. As a result, $ 411 billion was invested in the budget. 626 million 69 thousand sum was considered as property tax.
The IQBOL BARAKA TEX limited liability company, registered in Sergeli district of Tashkent city, has been paying property tax in the amount of 1 373.4 thousand sums since this year.
That is, the property tax is calculated by the following formula:
MMS = CCB + SS
MMS = 68 667,6 thousand sum * 2% = 1 373,4 thousand sum
In this case,
MMS – property tax;
SSB – tax base;
SS is the tax rate.
Based on the above example, the enterprise pays property tax only at the amount of UZS 1 373.4 thousand for the facilities worth 68,667.6 thousand.
In a simplified and generalized system of taxation, to equalize the tax burden between taxpayers, to create a healthy competitive environment and to use natural resources efficiently and effectively.