Real estate services sector expands as spending reaches UZS 11.8 trillion

The real estate services sector has seen significant growth, with expenditures reaching UZS 11.8 trillion.

Data from the National Statistics Committee indicates that Tashkent dominated the market, with real estate-related services amounting to UZS 7.3 trillion over the five-month period.

Following Tashkent, the Tashkent region secured the second position among the regions, recording UZS 864.9 billion. The Samarkand region came in third with UZS 567.1 billion, while the Fergana region and Andijan region reported UZS 476.7 billion and UZS 400.1 billion, respectively.

In other regions, the value of real estate services varied between UZS 134.6 billion and UZS 337.4 billion.

These figures emerge amidst recent discussions concerning the taxation of newly built non-residential properties in Tashkent.

Previously, reports circulated suggesting that newly registered non-residential real estate was being assessed for additional value-added tax (VAT) and corporate income tax based on its market value. In response, the Tax Committee stated that this practice is not in accordance with Uzbekistan's tax legislation.

The committee clarified that, as per the Tax Code, VAT is applied to the supply of goods and services, with the tax base determined by the transaction's value. This means that a VAT obligation only arises when a taxable transaction occurs, such as the sale of goods, the provision of services, or any other operation legally recognized as a taxable event.