Tax and Accounting Alert

The IFRS reporting deadline for large taxpayers in Uzbekistan is approaching, as well as the time for submitting tax returns by foreign employees.

Financial reporting under IFRS

According to the information notice of the Ministry of Economy and Finance of the Republic of Uzbekistan No. 03/43-2725 dated February 6, 2024, "On accounting and preparation of financial statements according to the International Financial Reporting Standards by the end of 2023," an important deadline is approaching: by June 1, 2024, it is necessary to submit financial statements for 2023 on the basis of IFRS.

It is known that from January 1, 2021, in accordance with the Decree of the President of the Republic of Uzbekistan № PD-4611, large taxpayers must keep accounting records and prepare financial statements in accordance with IFRS. 

Organisations preparing financial statements in accordance with IFRS shall submit financial and tax reports for 2023 no later than June 1, 2024.

Entities classified as large taxpayers as of October 1, 2023, and applying IFRS for the first time:

-prepare an opening IFRS statement of financial position as of January 1, 2024, and keep IFRS accounting records from that date;

-prepare financial statements, including comparative information, at the end of 2024 and provide the first full set of IFRS financial statements at the end of 2025.

What does this mean for your business?

1. Compliance: make sure your company is compliant with IFRS accounting and financial reporting requirements. 

2. Timely reporting: remember to submit your 2023 financial statements no later than June 1, 2024.

3. Professional support: Our experts are ready to assist you in preparing and reporting under IFRS, ensuring compliance, and minimizing risks.

Don't delay your preparation! Contact us today to ensure that your company successfully transitions to IFRS and fulfils all legal requirements.

Our Services:

IFRS reporting: 

• Preparation of financial statements in accordance with International Financial Reporting Standards (IFRS) as required by PD-4611 or by owners and international creditors.

• Development of methodology and/or support for automation of accounting systems while implementing IFRS or other management reporting and dashboard tools (Power BI, Qlik).

Other accounting and finance services:

• Corporate trainings and development and implementation of accounting policies in accordance with IFRS. Preparation of market studies, financial analysis, financial modelling.  

Submission of Declarations

According to the Tax Code of the Republic of Uzbekistan, foreign citizens staying in the country for more than 183 days during any consecutive 12-month period are considered tax residents of Uzbekistan for personal income tax (PIT) purposes.

Also, citizens staying in Uzbekistan for less than 183 days may be considered residents if their stay in the country exceeds their stay in any other country.

 Specific features of registration:

Foreign citizens and individuals without citizenship who receive income from sources in Uzbekistan must, within thirty calendar days from the date of the beginning of the activity, submit to the tax authority an application for registration with copies of documents confirming their identity, tax registration in the country of citizenship (residence), and the amount of income from sources in Uzbekistan.

 Deadlines for Tax Residents:

• The deadline for filing personal income tax declarations for 2023 is April 1, 2024.

• The deadline for payment of income tax liabilities for 2023 is June 1, 2024.

 Consequences of not submitting a declaration:

• If the deadline is missed or incorrect information is found, the tax authority may automatically charge tax and issue a payment notice within 10 days.
• For late submission of tax declarations, the taxpayer is held administratively liable.
• Don't risk not filing a tax return! Ensure your financial security by complying with your tax obligations on time. Contact us for advice; we are here to help you navigate the complexities of Uzbekistan's tax system.

Our Services:

Declaration Preparation and Filing: Providing services for the preparation and filing of income tax returns for individuals and legal entities.

Tax Consulting: Providing expert advice on taxation issues, including optimisation of tax liabilities and compliance with legislation.

 Audit and Document Verification: Conducting tax audits and document reviews to ensure compliance with tax laws.

Calculation and Payment of Taxes: Performing calculations of tax liabilities and timely payment of taxes in due time.

Correction of Declarations: Making adjustments to previously filed returns, if necessary.

Compliance with Regulations and Requirements: Assistance in complying with tax regulations and requirements, providing information on deadlines and obligations.