ABOUT DERIVATIVES IN UZBEKISTAN KEY THINGS TO KNOW This paper will focus on the key aspects of the regulation of cross-border cash-settled derivative transactions entered into with an Uzbekistan-incorporated counterparty outside the exchange trading platform. What does Uzbek law say about derivatives? Derivative transactions are not governed by Uzbek law as a separate class of specific commercial transactions. Any cash-settled derivative transactions fall within the regulation of currency law as a transaction associated with an inbound / outbound flow of foreign currency proceeds.

Presidential resolution “On measures to simplify the process of liquidation of business entities” was adopted.

In accordance with the Resolution, from January 1, 2020, permanently functioning territorial special commissions for the liquidation of enterprises that are not engaged in financial and economic activities and (or) have not formed their statutory funds within the time limits established by the legislation are abolished.

Since July 1, 2019, changes came into force that will affect customs regulation, licensing, public procurement, investor relations, corruption risk assessment and many different sectors.

Purchase from defaulter cannot be credited VAT

Buyers of goods (works, services) are not entitled to include VAT in offset if the supplier is not a payer of this tax. Information on taxpayer registration with tax authorities as VAT payers can be obtained on the STC website.

“One-stop-shop” is opened for investors

Starting from January 1, 2020, liquidation procedures will be simplified. In particular, the announcement of the liquidation of the enterprise no longer needs to be published in print media, liquidating business should post the announcement on the website of the State Services Agency. Amendment to the regulation will allow non-functioning enterprises to resume work. Initially, they will be transferred to an inactive mode for 3 years, which will be followed by the liquidation process in case of unsustainability.