❓❗️ ARE PRIVATE SCHOOLS EXEMPT FROM PERSONAL INCOME TAX ?
📝 A limited liability company provides non-governmental educational services to the population. In accordance with paragraph 8 of PD-3276 of 15.09.2017 «On measures for the further development of activities for the provision of non-state educational services», it is established to exempt legal entities engaged in activities for the provision of non-state educational services in the field of preschool and general secondary education from paying: all types of taxes and mandatory contributions to state trust funds (with the exception of unified social tax) with the target direction of the released funds for their equipping with modern means of education, the purchase of consumables, inventory, the reconstruction and overhaul of buildings and structures, as well as the provision of free educational services to socially vulnerable categories of the population; for a unified social tax from the salaries of foreign teachers and specialists involved in the educational process under an employment contract.
📌 In accordance with the above, we ask for clarification on the following issue: 1. Is a limited liability company exempt from paying personal income tax and deductions to individual savings account on the basis of the above-mentioned Decree of the President of the Republic of Uzbekistan?
💡 The answer:
Individuals who are residents of the Republic of Uzbekistan are recognized as taxpayers of the personal income tax. In accordance with paragraph 8 of PD-3276 of 15.09.2017 «On measures for the further development of activities for the provision of non-state educational services», it is established to exempt legal entities engaged in activities for the provision of non-state educational services in the field of preschool and general secondary education from paying: all types of taxes and mandatory contributions to state trust funds (with the exception of unified social tax) with the target direction of the released funds for their equipping with modern means of education, the purchase of consumables, inventory, the reconstruction and overhaul of buildings and structures, as well as the provision of free educational services to socially vulnerable categories of the population; for a/a unified social tax from the salaries of foreign teachers and specialists involved in the educational process under an employment contract.
📌 In addition, paragraph 13 of the Decree of the President of the Republic of Uzbekistan dated September 5, 2018 PD-3931 «On measures to introduce new management principles into the public education system» the effect of benefits provided for by the Decree of the President of the Republic of Uzbekistan dated September 15, 2017 PD-3276 «On measures for the further development of activities for the provision of non-governmental educational services» extended until January 1, 2025.
📌 Based on the above, and also taking into account that these benefits apply to legal entities engaged in the provision of non—governmental educational services in the field of preschool and general secondary education, and there is no income tax benefit for individuals — tax agents of legal entities are not exempt from calculating, withholding from employees and transferring taxes (including mandatory accumulative pension contributions) to the budget system. At the same time, deductions to the individual savings account are made in accordance with the procedure established by law.
✅ Source: item 8 of PD-3276 dated 15.09.2017 «On measures for the further development of activities for the provision of non-governmental educational services», article 364 of the Tax Code of the Republic of Uzbekistan, item13 of PD-3931 dated 5.09.2018 «On measures to introduce new management principles into the public education system».
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