Registration of a permanent establishment in Uzbekistan
BASIC LEGISLATIVE ACTS ON THE REGISTRATION OF A PERMANENT ESTABLISHMENT (PE) IN UZBEKISTAN
The Tax Code of the Republic of Uzbekistan (on the 25th of December 2007)
THE DEFINITION OF A PERMANENT ESTABLISHMENT (PE) IN UZBEKISTAN
In accordance with the article 20 of the Tax Code of Uzbekistan a permanent establishment of a non-resident in the Republic of Uzbekistan is any place where a non-resident carries out the business activity, continuing for more than 183 calendar days anywhere up to the 12-month period.
A permanent establishment is not an independent legal entity and receives its tax status after registration with the tax authorities.
It is possible to register a PE only with the signed contract. A residence certificate is a necessary document to be presented. On completing of the contract a PE will need to be closed up.
IN WHICH CASES IS IT NECESSARY TO REGISTER A PERMANENT ESTABLISHMENT (PE)?
A lot of companies concluding contracts in Uzbekistan with the purpose of modernization, construction or renovation.
If you work less than 6 months and there is no a local staff at the office, you have no need to register a permanent establishment.
However, if the activity should prolong more than 6 months or the term of the contract is extended, the registration of a permanent establishment will be necessary according to the contract (or prolongation of the contract).
PRESENCE DURING THE REGISTRATION OF A PERMANENT ESTABLISHMENT (PE)
Our lawyers are able to provide you with the services of the remote registration of PE in Uzbekistan.
All necessary documents will be collected and verified in advance, the scanned documents will be translated.
Further, we will submit and receive documents without your presence.
The presence of Director should be necessary in Uzbekistan for the opening of a bank account. It is possible to use our specialists for interim management, if you do not have candidates as your own Director in Uzbekistan.
TERM OF THE REGISTRATION OF PERMANENT ESTABLISHMENT(PE)
The approximate period for the registration of a PE in Uzbekistan is about 7 working days after the submission of the documents to the State authorities (please, pay attention that we will need additional time to prepare the documents and open bank accounts.
APPOINTMENT OF THE DIRECTOR OF A PERMANENT ESTABLISHMENT (PE)
A permanent establishment cannot act as an employer, because it has only tax status and should not be considered as a form of the business entity.
IS IT POSSIBLE TO USE THE PREVIOUS PERMANENT ESTABLISHMENT (PE) TO WORK WITH THE NEW CONTRACTS?
There is a rule: the only one PE can be registered in accordance with one contract.
If you conclude a new contract, you have to register another PE.
It’s possible to register several permanent establishments of one company.
If you are engaged in the commercial activities, it is not possible to use a Reprensetative Office as the form of running business in Uzbekistan. And you need to register PE for the reason that such form as a Branch Office cannot be used by foreign investors in Uzbekistan.
TAX BOOKKEEPING AND ACCOUNTING OF PERMANENT ESTABLISHMENT IN UZBEKISTAN
Our specialists can provide you with the Tax and Accounting services in Uzbekistan upon your request.