Permanent Establishment

Permanent establishment of non-resident in the Republic of Uzbekistan - is any place through which a non-resident carries on business, including the activities carried out by an authorized person in the Republic of Uzbekistan. Permanent establishment of a non-resident in the Republic of Uzbekistan is recognized as the implementation of business activity in the Republic of Uzbekistan, which lasts for more than one hundred and eighty three calendar days in any consecutive twelve-month period.

The term "permanent establishment" applies only to the determination of tax status and does not have the organizational and legal meaning.

The term "permanent establishment" includes:

1) any place of the implementation of activities related to the production, processing, packaging, repacking, wrapping, sale of goods;

2) any place of management, office, branch, division, bureau, office, office,  agency, factory, workshop, laboratory, shop, warehouse;

3) any place of the implementation of activities related to the mining of natural resources: mines, oil and (or) gas well, a quarry;

4) any place of business (including the control or observation), associated with the pipeline, gas pipeline, exploration and (or) development of natural resources, installation, assembly, commissioning, start-up and (or) maintenance of equipment;

5) any place activities related to the operation of slot machines (including devices/attachments), computer networks and communications channels, amusement, transportation or other infrastructure;

6) building site (construction, assembly or installation project), as well as services related to the supervision of the execution of works at these construction project. Each construction site from the date of commencement of work is regarded as forming a separate permanent establishment. If subcontractors are other non-residents of the Republic of Uzbekistan, their activities are treated as a separate permanent establishment of subcontractors from the start of work on this construction site;

7) acting through a person, who represents non-residents’ interests in the Republic of Uzbekistan on the basis of a contractual relationship,  and  acts on the territory of the Republic of Uzbekistan on behalf of this non-resident, has authority and regularly uses it to make contracts on behalf of a  non-resident the Republic of Uzbekistan;

8) the sale of goods from the warehouses (rented or otherwise used)  located on the territory of the Republic of Uzbekistan and owned by non-residents of the Republic of Uzbekistan, (including customs);

9) other works and  services, conducting other activities, except for the fifth part of this article.

In certain cases, such as road construction or exploration of mineral deposits, in other words where there is regular movement of business place, they use different criteria for determining a fixed place. In such cases, the entire project is considered as a permanent establishment, regardless of its mobile nature.

Professional specialists of the “My Lawyer” Law Firm are ready to provide you with legal support on registration of permanent establishment of non-resident in the Republic of Uzbekistan.