In Uzbekistan, businesses will be able to write off overdue debt on export transactions.

In Uzbekistan, businesses have been given the opportunity to write off overdue accounts receivable from export transactions using their own funds. This measure will be in effect until January 1, 2027, and applies to cases where assets received as a result of exports were not returned within the established timeframe.

This provision is enshrined in a presidential decree dated August 27.

This mechanism applies to debts arising from late payment from foreign counterparties under foreign trade contracts. It is important that the goods, works, or services were actually exported, and the debt was registered as overdue in the E-kontrakt foreign trade information system before the decree comes into effect.

Exceptions apply to legal entities in which the state has a 50% or more stake in the authorized capital, as well as companies in which state-owned organizations have a similar stake.

Furthermore, starting January 1, 2027, the court will have the authority to halve the fine for the failure to return assets from foreign trade transactions. This is possible provided that the resident has taken all good faith measures to recover the funds, including filing a lawsuit or arbitration, or if they have succeeded in recovering more than 50% of the assets.

A reduced fine is also provided in situations where the return of funds was limited by international sanctions, restrictions on banking and payment systems, or bans on foreign exchange transactions in the foreign partner's country.