Benefits of IT Park residency in Uzbekistan

In recent years, the Uzbek government has successfully launched numerous initiatives aimed at promoting new projects in the IT sector and attracting investment inflows. One of these initiatives is the introduction of an IT hub with a privileged and autonomous regime for IT companies. This IT hub has been a main reason for inflow of IT specialists and businesses to Uzbekistan.

The technology park for software and information technologies, known as the "IT Park" offers a range of benefits for its residents, provided they meet certain obligations as prescribed by law. In the informative table below, we highlight the benefits of IT Park residency, along with the requirements and obligations.

1	Main requirements for applying for residency	-   Having a registered Uzbek legal entity that carries out the main activities indicated in column No. 7. *Having physical and legal residency in the territory of IT Park for companies whose main activity is venture financing and the implementation of acceleration programs in the field of information technology. ** Having an international certificate as per the list approved by the Directorate of IT Park for companies whose main activity is cyber sport.
2	Required documents for applying	A comprehensive and well-grounded business plan
3	Benefits of residency	-   transferring dividends and salaries in foreign currency to the bank cards of foreign founders and employees -   attracting foreign nationals without a work permit -   carrying out activities through a virtual office providing services through online shops in foreign currency without an export contract
4	Tax privileges until January 1, 2028	Exempt from the following taxes: -   Corporate tax -   Turnover tax -   VAT -   Social tax Employees pay income tax at the reduced rate of 7,5% while others pay 12%. It is not included in the total annual income of individuals determined for taxation purposes.
5	Customs incentives until January 1, 2028	Custom duty exemption for the equipment, components, technological documentation, software imported for their own needs that are not manufactured in Uzbekistan, according to the list approved by a Resolution of Cabin No. 352, dated 04.06.2021
6	Obligations of IT Park resident	-   Paying mandatory contributions to IT Park in the amount of 1% of the amount of all revenue for the past month No later than 20th day of next month; -   Submitting special reports to IT Park, no later than 15th day of the next month after the end of a calendar quarter; -   Submitting to IT Park an audit report for the past calendar year, no later than July 1st of the next year; Carrying out its activity as specified by business plan approved by IT Park
7	Approved types of activities to be conducted by a IT Park resident	-   Design, development, implementation (including granting permission to use the software, assignment (transfer) of the exclusive right to the software) of software, including cross platform computer games -   Provision of services for the implementation or execution of particular stages of implementation, support, maintenance of software, including training (advanced training) with this software -   Revision and modification of the software -   Creating databases in the process of developing information systems and software, preparing records for these databases in a given format, providing access to them, supporting them, and maintaining them -   Activity on data processing using the software -   Providing advertising space in your software or otherwise making a profit from additional software features -   Development and implementation of automated control systems -   Analysis of information needs of legal entities (system analysis, business analysis), consulting on the use of information technologies for innovation (reengineering) of business procedures with the development of technical requirements for information systems and software -   Audit of information systems and software in the process of their development, implementation, and operation for compliance with technical requirements and (or) information needs of users -   Provision of automated services, through software developed by a resident of the IT Park, for searching, selecting, processing, and sorting data at the request of third parties, and providing them with information -   Providing services to non-residents of the Republic of Uzbekistan for the development, management (implementation) of administrative and business processes (outsourcing of business processes) using software (software and hardware) -   Implementation of materials, technologies, devices, and systems of micro-, opto - and nanoelectronics, microelectromechanical, and compatible embedded software developed by the IT Park resident -   Development (research, design (construction), testing, technical testing) of equipment for data transmission systems, technologies, devices and systems of radar, radio navigation, radio communication, radio control, radio frequency identification and implementation of the results of such developments with or without the provision of services for their development in production -   Development or different stages of development (research, design, construction, prototyping, testing), production (non-industrial) of high-tech systems and devices, software and hardware and software compatible with them, as well as the sale of manufactured products and (or) development results with or without the provision of services for their development in production -   Activities for technical and (or) cryptographic protection of information, including the use of an electronic digital signature - Activities connected to the development, implementation, and execution of the concept of a computing and communication network of physical objects equipped with built-in technologies for interacting with each other and with the external atmosphere (Internet of things) -   Educational activities in the field of information and communication technologies, including through the Internet, according to programs approved by the IT Park Directorate -   Exporting information services via the Internet - Services in the field of multimedia and design (web design, graphic design, computer game design, vector graphics, 3D graphics, visual design, interface design, technical design, motion design) -   Development of animated products using software - Venture financing and implementation of acceleration programs in the field of information technology -   Providing services in the field of cybersports -Provision of services by organizations with a higher share of service exports in the total volume of services relative to the volume of services provided for the domestic market, operating in at least two or more foreign countries.

If you have any questions, need clarification on the benefits of IT Park residency in Uzbekistan, or need legal assistance in forming a legal entity with an aim of registering it in IT Park, our legal team would be happy to assist you. Feel free to contact us at info@fairlex.uz