Part 4 of paragraph 1a of the Decree of the President of the Republic of Uzbekistan No. UP-6029 of 2007-2009 of the President of the Republic of Uzbekistan on additional measures to support the population of the subjects of entrepreneurship in the sphere of public catering of trade and services to reduce the negative impact of the coronavirus pandemic is provided ( quote from the 4th paragraph of the Decree of the President of the Republic of Uzbekistan dated 20072020, No. UP-6029) in order to provide additional support to the population and subjects of entrepreneurship, especially in the sphere of public catering of trade and services during the coronavirus pandemic to support their income accelerated recovery as the sanitary and epidemiological situation improves. (hereinafter – paragraph 1a) №UP-6029 of 20.07.2020).
For the period from June 01 to December 31, 2020, the total amount of tax benefits to which the Company is entitled, is a calculated amount of 1,345,317,315.14 UZS, including through the exemption from tax:
– Land tax at the rate of 409,469,735.19 soums;
– Property tax at the rate of 935,847,579.95 soums.
As of today, according to the analysis of the situation, the total estimated amount of tax benefits is 1,345,317,315.14 soums (provided to the Landlord during 7 months of 2020), including through exemption from: land tax at the rate of 409,469,735.19 soums; property tax at the rate of 935,847,579.95 soums, that is, until the end of 2020), is less than the total amount of benefits in the amount of 2,688,228,135.45 soums, actually (previously) provided by the Company in favor of all Lessees for the period of severe restrictive measures (i.e. 30.03.2020 – 29.04.2020) at the rate of 1,342,910,820.31 soums.
– the amount of tax benefits provided to the Company for 7 months of 2020 is 50,04% of the total amount of benefits actually provided by the Company in favor of Tenants for the period 30.03.2020. – – 29.04.2020г.;
– income not received by the Company as a result of tenants’ support in the form of application of the exclusive procedure of charging rent (up to suspension of payments in some cases) only for the period 29.03.2020. – 30.04.2020 exceeds the total amount of tax benefits for 7 months of 2020 (in the form of exemption from property tax and land tax for the period from June 1 to December 31, 2020), provided by Decrees of the President of the Republic of Uzbekistan №UP-5996 of 18.05.2020 and №UP-6029 of 20.07.2020.
However, despite the aforesaid and the fact that the functioning of the real estate objects was not suspended by the Lessor (the service of providing areas for rent continued to be provided), taking into account the understanding of the need for additional support of Lessees, the principle of fairness in doing business, based on the recommendations of part 4 of paragraph 1a) of the Decree of the President of the Republic of Uzbekistan from 20.07.2020 №UP-6029 “On additional measures to support the population, business entities, public catering, trade and services for the reduction of the tax burden on the population, business entities, the public catering, trade and services for the period from 01.05.2020 to 31.12.2020”:
– creation of favorable business climate;
– Minimizing the consequences of the COVID-19 pandemic, representing the risk of negative impact on the economic condition of tenants –
International Business Centre JSC hereby informs about additional decisions taken on 04.08.2020 regarding the application of the next exceptional procedure for calculating rent payments from July 20, 2020 to October 31, 2020, providing for discounts in favour of the Tenants of ITC building during the mentioned period.
Taking into account the fact that a first aid distribution centre for patients with COVID-19 suspicion has been deployed at the territory of the exhibition complex Uzexpocentre, Lessees of office premises of the ITC building, located at the territory of the exhibition complex Uzexpocentre, shall be entitled to 10% LOASTING during the period from 20 July 2020 to 31 October 2020.
- In case(s) from the Lessees of the office premises of ITC building, who have not provided the Lessor with the certificate on the confirmation of force majeure circumstances (“force majeure”), issued in the order regulated by the Decree of the Cabinet of Ministers of the Republic of Uzbekistan №63 from 15.02.2005. “On enacting the mechanism for confirming force majeure circumstances (force majeure)” will be issued:
– There was disagreement (dissatisfaction) with the Lessor’s application in favor of Lessees of the next exceptional procedure of charging the rent in the form of reduction of the rent cost by 10% for the period from July 20, 2020 to October 31, 2020;
– additional bidding has been initiated with references to the difficult financial and economic situation in the period of COVID-19 and with requests to increase the number of rental days not accepted in proportion to the cost of rent, or to provide additional discounts, ignoring the current issues facing Lessor (which, in turn, is in the same conditions as all Lessees);
– electronic and paper invoices are not accepted (within 5 days from the date of issue), –
Such Lessees shall charge rent according to the procedure established by the existing contractual relations, i.e., in strict compliance with the terms of charging the rent value stipulated in the lease agreements concluded between the parties.
Arrange additional agreements to the existing lease agreements for office premises located in the ITC building to reduce the cost of rent by 10% during the period from July 20, 2020 to October 31, 2020 (if the agreement expires earlier than October 31, 2020 – before the expiry date of the agreement).
Taking this opportunity, let me express my gratitude to each of our Tenants for the established cooperation and, taking into account that the amount of tax benefits provided to the Company for 7 months 2020 is only 50.04% of the total amount of benefits actually provided by the Company in favor of Tenants for the period 30.03.2020. – On 29.04.2020, we would like to ask you to take into account that the implementation of the abovementioned next decisions to reduce the total cost of rent, provides the maximum allowed and feasible opportunities for JSC “International Business Center” to provide motivation financial support to Lessees by the end of the current year 2020.