Consolidated group of taxpayers

A consolidated group of taxpayers is a voluntary grouping of taxpayers on the basis of an agreement for the purposes of calculating and paying corporate income tax in accordance with the aggregate financial results from economic activities of the participants of the consolidated group.

A consolidated group of taxpayers may be established for a period of at least 2 calendar years.

A consolidated group of taxpayers may be established by legal entities, if any legal entity directly or indirectly owns the other legal entities and such ownership in each legal entity is at least 90%. This condition must be adhered to throughout the existence of the consolidated group.

All legal entities that are members of a consolidated group must meet the following criteria:

• the total amount of value added tax (VAT), excise tax, income tax and subsoil use tax paid by them during a calendar year is not less than 100 billion Uzbek soums
• the total volume of revenue from the sale of goods and services, as well as other income according to financial statements for a calendar year is not less than 500 billion Uzbek soums
• the total value of assets according to financial statements at the end of a calendar year is not less than 1 trillion Uzbek soums
• apply the same tax rate for corporate income tax

Requirements for members of a consolidated group

A member of a consolidated group of taxpayers must not be in the process of reorganization or liquidation, and no insolvency proceedings must be initiated against it. The amount of net assets of a member of a consolidated group, calculated on the basis of financial statements at the time of submission of documents to the tax authority for registration of the agreement on the establishment of a consolidated group, must exceed the amount of its authorized capital.

The following entities cannot be members of a consolidated group of taxpayers:

• legal entities not recognized as taxpayers of corporate income tax
• participants of special economic zones
• legal entities applying special tax regimes
• microcredit and clearing organizations
• banks, except when all other legal entities included in this consolidated group are banks
• insurance organizations, except when all other legal entities included in this consolidated group are insurance organizations
• professional participants in the securities market, except when all other legal entities included in this consolidated group are professional participants in the securities market

Responsible member of the consolidated group

The responsible participant of a consolidated group of taxpayers shall be the participant who, in accordance with the agreement on the establishment of a consolidated group of taxpayers, is assigned the responsibility for calculating and paying corporate income tax on behalf of the group.

The responsible participant has the right to represent the interests of the participants of the consolidated group as follows:

• represent the group with respect to the registration, amendment and termination of the agreement on the establishment of a consolidated group of taxpayers
• carry out the collection of corporate income tax from a member of a consolidated group
• react to the actions (or inactions) of the officials of the tax authority, when they directly affect the rights of a legal entity that is a member of a consolidated group of taxpayers

Registration of a consolidated group of taxpayers

In order to register an agreement on the establishment of a consolidated group of taxpayers, the responsible member of this group submits the following documents to tax authority:

• an application signed by authorized persons of all participants of the consolidated group
• two copies of the agreement on the establishment of a consolidated group
• certified documents confirming the fulfillment of the necessary conditions. Such documents include, in particular, copies of payment orders for the payment of taxes, balance sheets, reports on financial results for the previous calendar year for each of the group members
• documents confirming the authority of the persons who signed the agreement on the establishment of a consolidated group

Registration documents shall be submitted to the tax authority no later than October 30. The consolidated group of taxpayers shall be considered as established from the first day of the calendar year following the year in which the tax authority registered the agreement on the establishment of the group.