Examining tax risks in Uzbekistan involves analyzing various factors that could impact a business's tax obligations. Here are key considerations:
1. Legislative Environment: Uzbekistan has been reforming its tax system, so staying updated on changes in tax laws, rates, and regulations is crucial for compliance and risk management.
2. Tax Audits and Controls: Understanding the audit processes and criteria used by tax authorities is essential, as they can conduct audits that may lead to additional liabilities if discrepancies are found.
3. Tax Incentives: Investigating available tax incentives for foreign investors and specific sectors can help optimize tax obligations and mitigate risks.
4. Transfer Pricing: Proper documentation and compliance with transfer pricing regulations are important to avoid disputes with tax authorities regarding transactions between related parties.
5. Economic and Political Factors: Assessing the overall economic environment, political stability, and levels of corruption can provide insight into potential tax risks.
6. Engaging Local Experts: Collaborating with local tax advisors and consultants can offer valuable guidance on navigating the tax landscape effectively.
Managing tax risks requires a comprehensive approach, including thorough analysis and proactive planning to minimize potential liabilities.