Unofficial translation<\/p>\n
DECREE<\/span><\/strong><\/p>\n OF THE PRESIDENT OF THE REPUBLIC OF UZBEKISTAN<\/span><\/strong><\/p>\n 1.08.2018 y.<\/span><\/strong><\/p>\n \u2116<\/span>.<\/span> DP-5495<\/span><\/strong><\/p>\n <\/p>\n On measures for cardinal improvement of investment climate in the Republic of Uzbekistan<\/span><\/span><\/strong><\/p>\n <\/p>\n It should be noted that in order to create the most favorable investment climate in the country for attracting direct investment, large-scale measures have been taken to liberalize the economy, reform public administration, limit interference in the activities of business entities, reduce and simplify licensing and licensing procedures, and ensure free access to goods (works and services), as well as the creation of the necessary infrastructure in the regions.<\/span><\/p>\n The reform of tax policy and customs and tariff regulation <\/span>is being carried out<\/span> at an accelerated pace, aimed at reducing the tax burden and simplifying the tax system for investors, and supporting a healthy competitive environment.<\/span><\/p>\n At the same time, there are still bureaucratic barriers and obstacles in working with investors, especially in the field, consisting in the lack of proper support from the <\/span>khokimiyats<\/span> of all levels of investor initiatives, clear coordination of the work of ministries and departments in this direction, which hinders the strengthening of confidence in the consistency of state policies to create a favorable investment climate.<\/span><\/p>\n In order to further improve<\/span> the investment climate in the country, stimulate the attraction of direct investments, strengthen investor confidence in the sequence of state policy in this direction and increase the responsibility of state structures in working with investors:<\/span><\/p>\n 1. To establish from August 1, 2018 the procedure in accordance with which:<\/span><\/p>\n bona fide investor and business entity shall be compensated for property damage arising from trust in the legal force of the administrative act of the state body (official) adopted against them, relying on the legal force of which they used the property, made a transaction or otherwise used the provided benefits and advantages, in in case of subsequent recognition of this act as invalid or its cancellation;<\/span><\/p>\n the question of canceling or changing an administrative act of a state body (official), in cases where this affects the legitimate interests of a bona fide investor and business entity, is considered in a judicial proceeding, unless its preservation poses a threat to the public interest.<\/span><\/p>\n 1<\/span>1<\/sup><\/span>. Establish that:<\/span><\/p>\n harm<\/span> caused to a business entity as a result of illegal decisions of state bodies or illegal actions (inaction) of their officials is subject to compensation in full on the basis of a court decision directly by these state bodies, primarily at the expense of their extra-budgetary funds;<\/span><\/p>\n consideration<\/span> of economic disputes between business entities is carried out by an economic or arbitration court.<\/span><\/p>\n 2. To determine that from September 1, 2018:<\/span><\/p>\n making decisions on the seizure of land for state and public needs is allowed only after an open discussion with interested parties whose land is planned to be withdrawn, as well as assessing the benefits and costs;<\/span><\/p>\n decisions<\/span> on the withdrawal of land plots for state and public needs are made by the <\/span>Jokargy<\/span> Kenes<\/span> of the Republic of <\/span>Karakalpakstan<\/span>, the <\/span>Kengashes<\/span> of people’s deputies of the regions and the city of Tashkent;<\/span><\/p>\n seized land plots for state and public needs are allocated to state bodies, institutions, enterprises, self-government bodies of citizens by decisions of the Council of Ministers of the Republic of <\/span>Karakalpakstan<\/span>, <\/span>khokims<\/span> of regions and the city of Tashkent on the basis of the right of permanent use, while the allocation of these land plots in any other way and to other persons is prohibited;<\/span><\/p>\n the demolition of residential, industrial premises, other buildings and structures belonging to individuals and legal entities, upon the seizure of land is permitted after full compensation of the market value of real estate and losses caused to owners in connection with such seizure;<\/span><\/p>\n losses incurred by individuals and legal entities as a result of the unlawful administrative act of a state body (official) are subject to compensation by the state, primarily at the expense of non-budgetary funds of the relevant authorities, followed by recovery from the guilty person in a recourse manner.<\/span><\/p>\n 3. To establish that the withdrawal of land for state and public needs <\/span>is allowed<\/span> solely for the following purposes:<\/span><\/p>\n the provision of land for the needs of defense and state security, protected natural areas, the creation and functioning of free economic zones;<\/span><\/p>\n fulfillment<\/span> of obligations arising from international treaties;<\/span><\/p>\n discovery<\/span> and development of mineral deposits;<\/span><\/p>\n construction (reconstruction) of roads and railways, airports, airfields, aeronautical facilities and aeronautical centers, railway facilities, bridges, subways, tunnels, energy systems and power lines, communication lines, space activities, trunk pipelines, engineering and communications networks;<\/span><\/p>\n execution<\/span> of master plans for settlements in the construction of facilities at the expense of the State budget of the Republic of Uzbekistan, as well as in other cases directly provided for by laws and decisions of the President of the Republic of Uzbekistan.<\/span><\/p>\n 4. To introduce from October 1, 2018 the following new mechanisms for the provision of land for investment activities:<\/span><\/p>\n long-term lease of land for non-agricultural purposes for a period of up to 50 years, but not less than the period specified in the application, for the implementation of investment projects through an electronic auction through a single electronic trading platform “E-IJRO AUKSION”;<\/span><\/p>\n 5. To grant the right:<\/span><\/p>\n to the Chairman of the Council of Ministers of the Republic of <\/span>Karakalpakstan<\/span>, <\/span>khokims<\/span> of regions and the city of Tashkent to conclude investment agreements with foreign investors when implementing investment projects with a share of foreign investment in an equivalent of not more than 10 million US dollars, within the powers and in the manner established by law;<\/span><\/p>\n to <\/span>Jokargi<\/span> Kenes<\/span> of the Republic of <\/span>Karakalpakstan<\/span>, <\/span>kengashs<\/span> of people’s deputies of regions and the city of Tashkent to make decisions on the sale of unused state property (except for the objects listed in appendixes No. 1 and 2 to the resolution of the President of the Republic of Uzbekistan dated June 16, 2017 No. RP-3067 \u201cOn measures to further improve the procedures for the sale of state property “), the total area of which is more than 2000 <\/span>sq.m<\/span>.,<\/span> but not more than 5000 <\/span>sq.m<\/span>., for the implementation of investment projects.<\/span><\/p>\n 6. To approve the proposals of the Ministry of Justice, the Ministry of Economy and the State Committee of the Republic of Uzbekistan on promoting privatized enterprises and promoting competition on:<\/span><\/p>\n reducing<\/span> the minimum share of foreign investment in the authorized capital of enterprises with foreign investment from 30 to 15 percent;<\/span><\/p>\n the<\/span> cancellation of the requirement for the mandatory participation of a foreign legal entity as a participant in an enterprise with foreign investment;<\/span><\/p>\n reducing<\/span> the minimum size of the authorized capital of enterprises with foreign investments from 600 million <\/span>soums<\/span> to 400 million <\/span>soums<\/span>;<\/span><\/p>\n three<\/span> times reduction of the state fee for state registration of enterprises with foreign investments;<\/span><\/p>\n determining<\/span> the minimum size of the authorized capital of a joint stock company of 400 million <\/span>soums<\/span>;<\/span><\/p>\n the cancellation of the mandatory procedure for concluding export contracts for fruits and vegetables at prices not lower than the prices published by \u201c<\/span>Uzagroexport<\/span>\u201d JSC, as well as the customs clearance of fruits and vegetables, carried out without concluding an export contract, on the <\/span>basis of an invoice, at prices not lower than the prices indicated on the official website JSC “<\/span>Uzagroexport<\/span>“.<\/span><\/p>\n 6<\/span>1<\/sup><\/span>. Establish that:<\/span><\/p>\n enterprises with foreign investments include foreign subsidiaries and joint ventures that meet the conditions specified in <\/span>clause 6<\/span><\/a> of this Decree, and in the statutory activities of which the share of their own production and (or) service maintenance of manufactured products accounts for more than 60 percent of the total revenue from economic activities;<\/span><\/p>\n the deadline for the formation of the statutory funds of enterprises with foreign investments in the amounts provided for by the constituent documents should not exceed one year from the date of state registration of the enterprise, unless otherwise provided by separate government decisions;<\/span><\/p>\n