Tax alert – Forvis Mazars Uzbekistan

What will change on accounts receivable?

If there are:

1) overdue receivables of a non-resident (example: overdue contractual terms of delivery on import advances or overdue contractual terms of payment on export proceeds)

and

2) the amount of overdue receivables exceeds 10% for transactions carried out under one foreign trade contract.

starting from 1 July 2024, the following requirements must be complied with:

• Export transactions may only be carried out on the basis of prepayment, letter of credit, bank guarantee and policy for insurance of political and commercial risks under the export contract,
• Payment under import contracts is allowed only after release of goods for free circulation (performance of work, provision of services) or on the basis of guaranteed types of payment (letter of credit, foreign bank guarantee, insurance policy),
• Payment under operations of other types of foreign trade contracts (import, export, purchase and sale of goods) is allowed on the basis of guaranteed types of payment (letter of credit, foreign bank guarantee, insurance policy).

What will change on accounts payable?

If there is an overdue payable to a non-resident

from 1 July 2024, the following requirements must be complied with:

• payment under an import contract for accounts payable exceeding 365 days can be made provided that the existence of a debt to a foreign partner is confirmed by an audit organization that is a member of international audit organization specified in the list posted on the official website of the Ministry of Economy and Finance of the Republic of Uzbekistan;
• if under an import contract the accounts payable (exceeding 365 days) to a foreign partner will not be confirmed by an audit organisation, starting from 1 October 2024, it is subject to de-registration in the UEISVO system (as property or services received free of charge).

Forvis Mazars is an audit organization that is compliant with the requirements above and is ready to provide you with the necessary support.

If you have any questions, please contact us at the contacts below.

Anora Kasimova

Director, Taxes

E-mail: anora.kasimova@mazars.uz

tel. +998 93 373 11 40 (telegram)

Manuchehr Nasirov

Senior Manager

E-mail: manuchehr.nasirov@mazars.uz