Dec 24, 2024
Explore the specialized legal framework, significant tax incentives, and unique support mechanisms available for businesses and professionals within Uzbekistan's rapidly developing Creative Industry Park.
Uzbekistan is actively cultivating a dynamic environment for innovation and artistic enterprise through the establishment of its Creative Industry Park. This initiative represents a strategic move to foster growth, collaboration, and international integration within the creative economy. For businesses and professionals operating in this sector, understanding the distinct advantages of becoming a resident of this Park is crucial for strategic planning and accelerated development.
What is the Creative Industry Park?
The Creative Industry Park, established under Presidential Decree No. UP-61 dated March 26, 2025, is designed as a national hub to stimulate and support the creative economy. Beyond providing a physical space, its core objectives include:
Creating favorable conditions for the development of diverse creative industries.
Attracting both local and foreign investments into the sector.
Ensuring access to necessary resources and infrastructure for its residents.
Developing a robust ecosystem to increase the turnover and export potential of creative products, including the integration of electronic platforms and online markets into international systems.
Facilitating job creation, labor market analysis, and the continuous training and upskilling of creative professionals.
Promoting innovation and creativity across all related industries.
The Park is envisioned with regional branches, expanding its reach and impact across Uzbekistan.
Defining the Creative Industry: Who Can Become a Resident?
According to Law No. ZRU-970 of October 3, 2024, "On Creative Industry," the scope of creative industries is broadly defined to include:
Literary Creativity: Authorship, content writing.
Applied Arts and Craftsmanship: Traditional and contemporary crafts, design.
Architecture, Design, and Urban Planning: Architectural services, urban development, landscape design.
Fine Arts: Painting, sculpture, graphic arts.
Other Creative Activities: Encompassing the creation, production, storage, distribution, and promotion of creative products. This broad definition ensures a wide array of innovative and artistic endeavors are eligible.
Entities and individuals engaged in these fields, aiming to develop and commercialize creative products, are the primary candidates for residency.
Strategic Advantages for Residents: Tax, Customs, and Financial Support
A key driver for businesses to consider residency in the Creative Industry Park is the comprehensive package of incentives, active from May 1, 2025, to January 1, 2031. These benefits are designed to significantly enhance financial viability and operational efficiency:
Reduced Personal Income Tax (PIT): A 50% reduction in Personal Income Tax rates for employees of resident companies. This directly lowers wage-related costs for employers.
Reduced Social Tax: A 50% reduction in the Social Tax rate, further decreasing the cost of employment.
Flexible Turnover Tax Regime: Residents are included in the category of turnover tax payers, irrespective of their total income from sales of goods or services. This provides a simplified and predictable tax burden. Importantly, residents retain the flexibility to opt for the generally established taxation procedure if it proves more advantageous for their specific business model.
Interest-Free Loans and Grants: Presidential Decree No. UP-61 also envisages the provision of interest-free loans and grants for Park residents, subject to certain conditions. This offers direct financial support for development and innovation.
Important Note on Tax Code: While these significant benefits are enacted, it is crucial to note that corresponding amendments are still required to be integrated into the Tax Code of the Republic of Uzbekistan for their practical application. Businesses should stay informed about these legislative updates.
Beyond Financials: An Ecosystem of Support
Residents of the Creative Industry Park also gain access to a supportive ecosystem designed to foster growth and innovation:
Infrastructure Access: Use of modern infrastructure and facilities within the Park.
Consulting Services: Access to specialized consulting services to aid business development.
Program Participation: Opportunities to participate in programs aimed at refining new ideas and improving creative output.
Networking: A dedicated environment for collaboration, knowledge sharing, and forging partnerships within the creative community.
Talent Development: Benefit from initiatives focused on training and upskilling personnel in cutting-edge creative and "fourth industrial revolution" professions.