Foreign investments in the province
In 2010 the Karakalpakstan attracted foreign investment and loans totaling USD 38174.1 thousand, with the share of FDI in it amounted to USD 20139.1 thousand. For foreign investments in the Republic of Uzbekistan there have been set national treatment, which grants foreign investment the terms not less favorable than the corresponding conditions for investments by domestic individuals and legal entities. Enterprise attracting direct private foreign investment and located in the Republic of Karakalpakstan, as well as carrying out activities in the following sectors: radio-electronical industry, production of computer components and computer engineering, light industry, silk industry, construction materials, industrial production of poultry and eggs, food processing, meat and dairy industry, chemical and pharmaceutical industries are exempt from operating activities income (profit) tax, property tax, social infrastructure and territories’ face-lift tax, the single tax for microfirms and small enterprises, as well as compulsory contributions to the Republican Road Fund. These tax credits are available for private foreign direct investment. At the same time these tax credits are applied in the following conditions:
- Private FDI is made by foreign investor without warranty of Uzbekistan;
- The share of foreign participants in the charter capital of the enterprise must be at least 50 percent;
- Contributing the private FDI after the state registration of the enterprises;
- Foreign investment in the form of freely convertible currency or new equipment;
- Income received as a result of providing these benefits for the duration of their use, is re-invested to further development of the company.