Individual investment accounts may appear in Uzbekistan

The National Agency for Advanced Projects has developed a draft regulation on the opening of an individual investment account. The document outlines the mechanism for citizens to open accounts with brokers to purchase securities traded on the local stock market.

The maximum amount exempt from personal income tax is 100 minimum wage rates per year. Additionally, these funds must remain in the account for at least 12 months without withdrawal.

A client wishing to open an IIA must provide the investment intermediary with a document confirming their identity and their PINFL (Personal Identification Number). After that, the intermediary will conclude a contract with the client for the opening and management of the IIA.

In addition to the expiration of the term, the investment intermediary may close the IIA early upon the client's application. Upon closing the account, it will calculate the tax on investment income and then transfer the net profit to the client.

The introduction of the IIA is expected to contribute to the development of the capital market in Uzbekistan by expanding investment resources. Issuers of securities will be able to attract additional financing, while investors will gain additional income.

Source: spot.uz