CURRENCY REGULATIONS / OPERATIONS WITH CASH FOREIGN CURRENCY
With the purpose of preventing violations of currency legislation a Decree of the President of the Republic of Uzbekistan issued recently includes the provisions summarised below.
The national currency "soum" is to be the only currency used for payments on the territory of Uzbekistan. Import and export of foreign currencies in cash is allowed only to accredited banks and with the specific permission of the Central Bank of Uzbekistan.
Individuals (both residents and non-residents) are obliged to fill in customs declarations in respect of imported cash.
Imported foreign currency in excess of USD 5000 (or equivalent) is subject to a 2% import tax.
The allowable limit for the export of cash foreign currency is USD 500 for residents and is up to the amount declared when entering the country for non-residents. If a greater amount of cash foreign currency is to be exported, the permission of the Central Bank or of the National Bank for Foreign Economic Activity must be obtained.
If the amount of cash foreign currency exported by a non-resident individual differs by more than USD 2000 (or equivalent) from the amount declared upon entering the country, documents confirming the legitimate disposal of hard currency (exchange office receipts, etc.) must be presented to the customs authorities on departure, otherwise a penalty is charged at the rate of 30% of the unsupported amount.
All legal entities, including entities with foreign equity, and all individuals (residents and non-residents) are strictly prohibited making any payments (including salaries) in cash foreign currency on the territory of Uzbekistan. These payments can only be made in national currency, by cash or by bank transfer.
All of the above restrictions (except for the first) do not effect persons possessing diplomatic status.
Decree of the President of the Republic of Uzbekistan of 24 October 1996
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
For further information contact David Simpson, Tax Manager, Tashkent office on tel: +750 2225 8600 or e-mail: David_Simpson@ru.coopers.com or enter a text search 'Coopers & Lybrand' and 'Business Monitor'.
With the purpose of preventing violations of currency legislation a Decree of the President of the Republic of Uzbekistan issued recently includes the provisions summarised below.
The national currency "soum" is to be the only currency used for payments on the territory of Uzbekistan. Import and export of foreign currencies in cash is allowed only to accredited banks and with the specific permission of the Central Bank of Uzbekistan.
Individuals (both residents and non-residents) are obliged to fill in customs declarations in respect of imported cash.
Imported foreign currency in excess of USD 5000 (or equivalent) is subject to a 2% import tax.
The allowable limit for the export of cash foreign currency is USD 500 for residents and is up to the amount declared when entering the country for non-residents. If a greater amount of cash foreign currency is to be exported, the permission of the Central Bank or of the National Bank for Foreign Economic Activity must be obtained.
If the amount of cash foreign currency exported by a non-resident individual differs by more than USD 2000 (or equivalent) from the amount declared upon entering the country, documents confirming the legitimate disposal of hard currency (exchange office receipts, etc.) must be presented to the customs authorities on departure, otherwise a penalty is charged at the rate of 30% of the unsupported amount.
All legal entities, including entities with foreign equity, and all individuals (residents and non-residents) are strictly prohibited making any payments (including salaries) in cash foreign currency on the territory of Uzbekistan. These payments can only be made in national currency, by cash or by bank transfer.
All of the above restrictions (except for the first) do not effect persons possessing diplomatic status.
Decree of the President of the Republic of Uzbekistan of 24 October 1996
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
For further information contact David Simpson, Tax Manager, Tashkent office on tel: +750 2225 8600 or e-mail: David_Simpson@ru.coopers.com or enter a text search 'Coopers & Lybrand' and 'Business Monitor'.
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