The three-stage penalty system in tax administration has been abolished.
At the recent plenary session of the Senate, the Law "On Amendments and Additions to Certain Legislative Acts of the Republic of Uzbekistan in Connection with the Improvement of Tax Administration, as well as the Liberalization of Liability for Tax Offenses and Currency Regulation" was discussed.
Extensive efforts are being made in the country to support entrepreneurs, create equal competitive conditions for them, and further enhance tax administration, as well as liberalize foreign trade activities and currency regulation.
According to the current regulations, business entities can be held accountable multiple times for the same offense.
For instance, entrepreneurs may face both a financial penalty and an administrative fine for the same violation, such as concealing the number of employees, violating mandatory digital labeling rules for goods, and displaying fiscal signs.
To prevent such instances, there is a need to introduce changes aimed at further improving tax administration and to revise the requirements for ensuring the repatriation of assets from foreign trade operations within the legally established deadlines.
To address the aforementioned issues, the existing three-stage penalty system of imposing a 50% fine in these cases is abolished. Instead, a procedure for applying a one-time financial penalty of 20% of the unrepatriated assets is introduced.
If a contract concluded within the framework of investment projects for the performance of works (services) related to design, import of equipment and components, installation of equipment, and construction and installation works specifies a delivery period exceeding 180 days, this Law provides for the application of the deadlines indicated in the contract.
The discussed Law establishes a warning against holding business entities accountable multiple times for the same offense by ensuring the proportionality of legal measures applied to tax-related violations in relation to the act of violation.
Thanks to the adoption of this Law, tax administration is improved, preventing ambiguous interpretations of norms in practice and ensuring their uniform application.
Moreover, the measures of liability for tax offenses are liberalized, which, in turn, contributes to the effective protection of the rights of business entities and reduces their excessive costs.
After the discussion, the Law was approved by the senators.