Uzbekistan Introduces Unprecedented Benefits for the Creative Industry Park
Uzbekistan
Uzbekistan is transforming into one of the most attractive global hubs for creative enterprises and international cultural showcases. The Senate of the Oliy Majlis has approved revolutionary tax amendments that completely exempt foreign contractors from key fiscal liabilities. This large-scale overhaul is strategically designed to draw global talent to the country, streamline the logistical management of major art events, and drive the creative sector's economic output to 145 trillion soums.
On May 19, the Senate of Uzbekistan approved amendments aimed at accelerating the development of the creative economy. The cornerstone of the legislation is the exemption of foreign counterparties engaged in projects of the Art and Culture Development Foundation, alongside residents of the Creative Industry Park, from three core taxes: VAT, corporate withholding tax, and personal income tax. This incentive-backed regime will remain effective for a five-year period from 2026 to 2030.
To maintain residency status within the park, enterprises must have an approved business plan and derive no less than 80% of their total annual revenue strictly from creative operations. While newly established startups are granted a temporary waiver during their initial phase, failure to meet these thresholds by the close of the financial year will trigger a retroactive tax recalculation and recovery to the state budget. Furthermore, the bill dramatically cuts bureaucratic red tape by authorizing direct, non-tender public procurement contracts for organizing international and interstate cultural and artistic events.
The legislative shift is driven by the immense commercial potential of the sector. Gayane Umerova, Chairperson of the Foundation, noted that cultural assets have already proven to be powerful drivers of regional economies. For instance, the inaugural Bukhara Biennial grew tourist arrivals to the region 1.5 times, crossing 2 million visitors, while Uzbekistan’s national pavilions at the Venice Biennale attract up to 1 million guests annually. Previously, the government slashed income and social tax rates for Park residents from 12% to 6%. Under the approved national strategy, the creative industry's share in the republic's GDP is projected to hit 5% by 2030, with sector exports reaching $1 billion, ultimately securing employment for over half a million citizens.
To maintain residency status within the park, enterprises must have an approved business plan and derive no less than 80% of their total annual revenue strictly from creative operations. While newly established startups are granted a temporary waiver during their initial phase, failure to meet these thresholds by the close of the financial year will trigger a retroactive tax recalculation and recovery to the state budget. Furthermore, the bill dramatically cuts bureaucratic red tape by authorizing direct, non-tender public procurement contracts for organizing international and interstate cultural and artistic events.
The legislative shift is driven by the immense commercial potential of the sector. Gayane Umerova, Chairperson of the Foundation, noted that cultural assets have already proven to be powerful drivers of regional economies. For instance, the inaugural Bukhara Biennial grew tourist arrivals to the region 1.5 times, crossing 2 million visitors, while Uzbekistan’s national pavilions at the Venice Biennale attract up to 1 million guests annually. Previously, the government slashed income and social tax rates for Park residents from 12% to 6%. Under the approved national strategy, the creative industry's share in the republic's GDP is projected to hit 5% by 2030, with sector exports reaching $1 billion, ultimately securing employment for over half a million citizens.
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