Harmful Tax Practices – 2024 Peer Review Reports on the Exchange of Information on Tax Rulings

Uzbekistan

Uzbekistan is taking steps to implement the aspects of the terms of reference (OECD, 2021[1]) (ToR) for the transparency framework and to ensure that all potential exchange jurisdictions for future rulings will be identified (ToR I.A.2.1) and that information on rulings will be identified and exchanged in a timely manner (ToR II.B).Uzbekistan receives two recommendations on these points for the for the calendar year 2024 (year in review).

In the prior year report, Uzbekistan had received the same two recommendations. One recommendation, related to having the necessary information gathering process for relevant rulings, has been partially addressed but remains in place for the other part. The other recommendation has not been addressed and remains in place.

Uzbekistan can legally issue two types of rulings within the scope of the transparency framework.

It is unknown how many rulings Uzbekistan issued in practice.

As no exchanges took place, no peer input was received in respect of the exchanges of information on rulings received from Uzbekistan.

Information gathering process (ToR I.A)

1. Uzbekistan can legally issue the following two types of rulings within the scope of the transparency framework: (i) preferential regimes1 and (ii) cross-border unilateral APAs and any other cross-border unilateral tax rulings (such as an advance tax ruling) covering transfer pricing or the application of transfer pricing principles.

Past rulings (ToR I.A.1.1, I.A.1.2, I.A.2.1, I.A.2.2)

2. For Uzbekistan, past rulings are any tax rulings issued prior to 1 September 2023. However, there is no obligation for Uzbekistan to conduct spontaneous exchange information on past rulings.

Future rulings (ToR I.A.1.1, I.A.1.2, I.A.2.1)

3. For Uzbekistan, future rulings are any tax rulings within scope that are issued on or after 1 September 2023.

4. In the prior years’ peer review reports, Uzbekistan did not yet have a process in place to ensure the identification of all relevant rulings and all potential exchange jurisdictions. Therefore, Uzbekistan was recommended to ensure that it has put in place an effective information gathering process to identify all relevant future rulings and all potential exchange jurisdictions.

5. Uzbekistan notes that when a ruling is issued, it is collected by a special division of the Tax Committee within Uzbekistan’s tax administration. The Office of International Tax Administration determines if the ruling is in scope of the Action 5 transparency framework and if yes, it identifies the relevant exchange jurisdictions

6. When a taxpayer applies for a ruling, it must submit an application form. Uzbekistan reports that it is developing a framework, which will require the taxpayer to provide information on the jurisdiction of residence of the immediate parent and ultimate parent of the taxpayer. As this process has not yet been completed, Uzbekistan is recommended to finalise its process for identifying potential exchange jurisdictions.

7. To date, no rulings within the scope of the transparency framework have been issued as no applications have been submitted by taxpayers requiring the issuance of such rulings. As such, there was no need to identify potential exchange jurisdictions.

Review and supervision (ToR I.A.3)

8. In the prior years’ peer review reports, Uzbekistan did not yet have a review and supervision process in place (ToR I.A.3). Therefore, Uzbekistan was recommended to have in place a review and supervision mechanism to ensure that all relevant information is captured adequately.

9. Uzbekistan notes that the process for identifying future rulings and potential exchange jurisdictions will be additionally supervised by the relevant tax inspectors of the control departments, such as Department of Desk Audits or Department of Tax Audit.

10.  Uzbekistan’s review and supervision mechanism is sufficient to meet the minimum standard and the prior year’s recommendation can be removed.

Conclusion on section A

11. Uzbekistan is recommended to finalise its information gathering process for identifying all potential exchange jurisdictions for future rulings, as soon as possible (ToR I.A.2.1).

Exchange of information (ToR II.B)

Legal basis for spontaneous exchange of information (ToR II.B.1, II.B.2)

12. Uzbekistan has the necessary domestic legal basis to exchange information spontaneously. Uzbekistan notes that there are no legal or practical impediments that prevent the spontaneous exchange of information on rulings as contemplated in the Action 5 minimum standard.

13. Uzbekistan has international agreements permitting spontaneous exchange of information, including bilateral agreements in force with 55 jurisdictions.2 Uzbekistan is not a party to the Multilateral Convention on Mutual Administrative Assistance in Tax Matters: Amended by the 2010 Protocol (OECD/Council of Europe, 2011[2]) (“the Convention”). Uzbekistan is encouraged to continue its efforts to expand its international exchange of information instruments to be able to exchange information on rulings. It is noted, however, that jurisdictions are assessed on their compliance with the transparency framework in respect of the exchange of information network in effect for the year of the particular annual review.

Completion and exchange of templates (ToR II.B.3, II.B.4, II.B.5, II.B.6, II.B.7)

14. Uzbekistan notes that it is developing the process for the completion and exchange of information on rulings in accordance with the form and timelines required by the transparency framework. The Tax Committee is the competent authority that will be responsible for collecting, processing and transmitting information in accordance with the transparency framework.

15. During the year in review, no exchanges took place and no data on the timeliness of exchanges is reported.

Conclusion on section B

16. Uzbekistan is recommended to put in place a process to ensure the timely exchange of information on rulings in the form required by the transparency framework (ToR II.B).

Statistics (ToR IV.D)

17. As there was no information on rulings exchanged by Uzbekistan for the year in review, no statistics can be reported.

Matters related to intellectual property regimes (ToR I.A.1.3)

18. Uzbekistan does not offer an intellectual property regime for which transparency requirements under the Action 5 Report (OECD, 2015[3]) were imposed.

Summary of recommendations on implementation of the transparency framework

 

Aspect of implementation of the transparency framework that should be improved	Recommendation for improvement
Uzbekistan is still developing a process to ensure the identification of all potential exchange jurisdictions.	Uzbekistan is recommended to finalise its information gathering process for identifying all potential exchange jurisdictions, as soon as possible
Uzbekistan does not have a process to complete the templates on relevant rulings, to make them available to the Competent Authority for exchange of information, and to exchange them with relevant jurisdictions.	Uzbekistan is recommended to put in place a process to ensure the timely exchange of information on rulings in the form required by the transparency framework. This recommendation remains unchanged since the 2023 peer review report.

Notes

← 1.  Uzbekistan’s preferential regimes still need to be assessed by the FHTP.

← 2.  Participating jurisdictions to the Convention are available here: www.oecd.org/tax/exchange-of-tax-information/convention-on-mutual-administrative-assistance-in-tax-matters.htm. Uzbekistan also has bilateral agreements with Austria, Azerbaijan, Bahrain, Belarus, Belgium, Bulgaria, Canada, China (People’s Republic of), Czechia, Egypt, Estonia, Finland, France, Georgia, Germany, Greece, Hungary, India, Indonesia, Iran, Ireland, Israel, Italy, Japan, Jordan, Kazakhstan, Korea, Kuwait, Kyrgyzstan, Latvia, Lithuania, Luxembourg, Malaysia, Moldova, Netherlands, Oman, Pakistan, Poland, Qatar, Romania, Russia, Saudi Arabia, Singapore, Slovak Republic, Slovenia, Spain, Switzerland, Tajikistan, Thailand, Turkmenistan, Türkiye, Ukraine, United Arab Emirates, United Kingdom and Viet Nam.