Additional measures were taken to support promising startup projects in the field of digital technologies and export activities of major companies in the industry

To stimulate the export activities of IT Park resident companies and increase the volume of services provided abroad, the Cabinet of Ministers has adopted Resolution "On Additional Measures to Support Promising Startup Projects in the Field of Digital Technologies and Export Activities of Major Organizations in the Industry" (№ 303, 29.05.2024.).

 

In accordance with the resolution, which comes into force on July 1st, 2024, up to 1 billion soums will be allocated for targeted grants on competition basis to support promising startup projects in the field of IT product development and IT education services with export potential.

 

With the aim of transforming Uzbekistan into an IT hub and boosting the volume of IT exports, a minimum export threshold at the end of the quarter is established for large resident companies with a turnover exceeding 100 billion soums during a calendar year:

 

- 10% from October 1st, 2024;

- 20% from January 1st, 2026;

- 35% from January 1st, 2027.

 

Based on this criterion, a new coefficient for contributions from IT Park residents will be established:

1. In case of the approved minimum export target is achieved, the contribution rate for IT Park will be set at 1%.

2. In case of the share of exports is below the minimum threshold, the contribution rate for IT Park will be set at 2%.

 

Additional funds generated from the 2% contributions of resident companies will be directed towards the development of export programs, including the export activities of local resident companies, and the creation of new jobs, particularly in the country's regions, support and investments in startup projects and venture capital funds, as well as promotion of local resident companies in the international market and the development of the incentive system.

 

Furthermore, the list of activities permitted for IT Park residents has been expanded. Companies providing services in two or more countries can now obtain IT Park resident status, provided that the share of exports in the total volume of services exceeds the volume of services rendered in the local market.

 

It is worth noting that, based on the results of the first quarter, 101 companies were deprived of IT Park resident status for failing to fulfill their obligations under the Agreement on the Terms of Activity for IT Park Residents. Thus, since 2021, a total of 631 companies have been stripped of their IT Park resident status.