Effectiveness of Law is Suspended
Law on “Temporary Suspense of Some Articles of the Law of the Republic of Uzbekistan “On Counteraction to Legalization of Profit Obtained from Criminal Activities, and to Financing of Terrorism” was adopted on April 27, 2007 (# ZRU-94).
In particular, effectiveness of the articles listed below is suspended until January 1, 2013:
- Powers of a specially authorized State body, appointed by the Cabinet of Ministers;
- List of transactions and conditions of their performance with regard to cash assets or any other property subject to mandatory control, including special cases;
- Responsibilities of organizations effecting such transactions for cash assents or any other property;
-  Right of surrender to effect transactions for cash assets or any other property.
The Law became effective on the day of its official publication, i.e. April 28, 2007.

Live and Learn, at Least for 12 years
Presidential Decree “On Additional Measures for Complete Transaction to Twelve-year Education and Timely Preparation of  Newly-Built  and Reconstructed Facilities of Professional Colleges and Academic Lyceums of Tashkent for 2007-2008 Academic Year” (May 1 2007, # PP-633) approves the proposal of the Ministry of Higher and Secondary Specialized Education, Ministry of Economics and Tashkent city Khokimiat to open  4 additional academic lyceums in Tashkent in 2007; these lyceums will be attached to the higher educational establishments. MHSSE, Centre for Secondary Specialized Education and the Tashkent city Khokimiat commit themselves to open l1 professional colleges and academic lyceums in Tashkent which are included into the Investment Program of 2007; the above authorities, in cooperation with the Ministry of Labour and Social Protection, should resolve the issues of employment of teachers who will be released due to abolishment of the senior school.

Good Deeds According to the Law
The Law “On Charity” (#ZRU-96) was signed on May 2, 2007.   In accordance with the Law, legal entities and physical persons have a right to carry on charity activities, individually or jointly, with and/or without formation of a charitable organization. Allocation of cash assets and other means and rendering assistance to commercial entities, political parties and movements should not be considered as charity. The Law specifies the purposes for which charity funds may be allocated; it also sets up a procedure according to which charitable organizations may be formed, registered and liquidated; it defines sources of the property formation and any other issues to regulate relations in this sphere.
The Law became effective on May 3, 2007, i. e. on the day of its official publication in “Narodnoye Slovo” newspaper.

Sphere of Preferences is Expanded
Presidential Decree “On Additional Measures for Accelerated Development of Non-Manufacturing Business and Services in the Republic of Uzbekistan up to 2010” (May 21, 2007, #PP-640) approves proposals to increase tax credits volume to be allocated for development of non-manufacturing businesses in 2007-2010; such credits will be granted from the Employment Fund (Ministry of Labour and Social Protection) and by the Microcredit Bank.  They will be purpose-orientated and applicable only for technological equipping of the newly established service rendering entities. Those business entities, which are involved in service rendering in the rural areas, will enjoy the mentioned preferences.   
Also, a proposal of the Uzbek Agency on Communication and Informatization is approved; the proposal is aimed at creation of the local information-servicing infrastructure in the rural areas; the mentioned infrastructure will be based on equipment of the telecommunication operators and on services to be rendered by small entrepreneurs. In association with the above, it is decided to reduce State dues for issuance of licenses the entrepreneurs require to run activities in the area of telecommunications.  
Three year tax preferences envisaged by item 7 of the Presidential Decree “On Measures for Accelerated Development of Non-Manufacturing Business and Services in the Republic of Uzbekistan in 2006  2010” (April 17, 2006, #PP-325) and effective from April 1, 2006 now cover not only profit (income) tax and single tax to be paid by legal entities rendering services in compliance with  the list of services specified in Annex 4 but they are also applicable to the services of  sanatoria, information-resource centers, child healthcare establishments, information and library centers, and professional participants of the insurance market. Besides this, the preferential period for micro-firms and small enterprises is extended until December 31, 2010 (Presidential Decree #PP-325). 

Liquidation Procedure Simplification                     
Simplified procedure for voluntary liquidation (closure) of entrepreneurship entities becomes effective from July 1, 2007. Provisions for the voluntary liquidation and closure of entrepreneurship entities are approved by the Presidential Decree “On Improvement of Procedure for Voluntary Liquidation and Closure of Entrepreneurship Entities (April 27, 2007, # PP-630). It is stated that starting from the date when a decision on voluntary liquidation  of the entrepreneurship entity-legal entity  is taken by the related registration authorities, the said entity suspends its financial and economic activities and  stops paying land tax, single land tax, property tax, water tax, as well as penalties on all types of taxes and other compulsory payments; funds that the founders (participants) allocate to the entity of entrepreneurship-legal entity  under voluntary liquidation will be used for  fulfillment of its liabilities, and they will not be subject to taxation. In the case the entity fails to complete its voluntary liquidation within the period of time stipulated by the law, or in the case the entity stops the liquidation procedure and resumes its activities, tax preferences specified by the Decree will not be applicable.

By Way of Voluntary Liquidation
By its Resolution as of June 6, 2007, the Cabinet of Ministers has inserted modifications and additions in some decisions of the government of the Republic; it has been done in order to conform them with the Presidential Decree “On Improvement of Procedure for Voluntary Liquidation and Closure of Entrepreneurship Entities (April 27, 2007). In particular, the Provisions on the Unified State Register of Enterprises of All Forms of Property have specified the period of time within which a state registration authority should notify the USREAFP holder about entrepreneurship entities-legal entities involved in the liquidation process; in the case such voluntary liquidation takes place. 
Powers of a special committee to conduct liquidation production are regulated by the Provisions on liquidation of enterprises that have not formed their capital within the period of time stipulated by the law and do not carry on their economic and financial activity.
Addition, being inserted in item 19 of the Provisions on the Xalq Bank procedure of personal registration of the citizens in the pension accumulation system, envisages notification to be made by the registration authority to Xalq Bank, in the case voluntary liquidation of entrepreneurship entities-legal entities takes place.

InvestProject: Welcome to Expertise
Resolution of the Cabinet of Minister as of June 7, 2007 approves Provisions on procedure of expertise and approval of documentation relating to investment projects.
They regulate the procedure of development, expertise and approval of the documents relating to investment projects which:
а)  will be implemented by means of the centralized financing resources (public budget and non-budget funds,  allocations from the funds established by the governmental decisions at certain sectors and enterprises, foreign credits to be received under government guarantees or on behalf of the Republic of Uzbekistan, allocations from the Fund of Reconstruction and Development of the Republic of Uzbekistan),
b)  will envisage preferences for taxes and other compulsory payments according to specific decisions of the President of the Republic,
c) will be implemented in compliance with product sharing agreements,
d)  will be implemented by means of non-centralized sources (with the project value more than USD 10 mln) at the enterprises where the State share is not less than 25% of the total capital,
e)  will envisage construction, re-profiling and modernization of the light industry enterprises despite the project cost and sources of financing,
g) will envisage production and processing of strategic minerals  with the project value exceeding USD 10 mln.
Effectiveness of the provisions does not cover documentation of such investment projects for which a separate procedure of development, expertise and approval is established by the governmental decisions.

“Uzbekneftgaz” will not Issue Licenses
To improve issuance of licenses for using the treasures of the soil, the President has signed a Decree (June 7, 2007) “On Modification of the Presidential Decree as of April 28, 2000 “On Measures for Attraction of Direct Foreign Investment to Exploring and Production of Oil and Gas”. The recent Decree excludes issuance of special permits (licenses) for exploring of hydrocarbon deposits from the Uzbekneftgaz National Holding Company's competence.  
Updated Program of Privatization
On July 20, 2007, the President signed the Resolution “On Measure for Intensification of Privatization Processes and Active Attraction of Foreign Investment in 2007-2010”. The Resolution is issued to fundamentally reduce the state-owned share in the statutory funds of the leading strategic branches and to enhance the participation of private property in the country's  economy development; it also targets to widely attract direct foreign investment required for modernization, technical and technological re-equipping  of production facilities and for increased output of high-quality, competitive, exportable products. 
The Resolution approves an updated Privatization Program which will cover three years. It envisages privatization of 994 enterprises and facilities of the non-manufacturing sphere. According to the Resolution, the State intends to sell its share, including the controlling interest, in 343 enterprises and facilities in the leading sectors of economy- chemical, electro-technical and construction branches, as well as in the fuel and energy and other industries. Within the framework of the approved Program, it is envisaged to introduce the “golden share” with regard to enterprises of the cotton processing and fat-and-oil industries being under privatization.
“A considerable number of non-operating and inefficient enterprises, as well as unfinished facilities, will be sold at the zero redemption value”. This Presidential Resolution is a new step to consistent and strategic privatization and enhancement of the private property role in the economy, in increase of the private sector share in GDP. 
The updated Privatization Program, resolute measures envisaged for its successful implementation should attract attention of the foreign business community and increase foreign investment flow to the economy of the Republic.
 (Material from published articles compiled by Uzbek A. Rustamov, General Representative, Interconcepts Inc. Translation to English: Lyubov Belokon)