GUARANTEES OF FOREIGN INVESTORS' RIGHTS IN THE REPUBLIC OF UZBEKISTAN

Аннотация

This article discusses measures aimed at guaranteeing the rights of investors in our country in recent years, guarantees created for investors in our national legislation, and information about theirimportance. Key words:investment, investorrights, guarantees, tax benefits, advantages and preferences. Emphasis should be placed on the fact that in recent years, extensive measures have been implemented to enhance the economic potential of our country, elevate its international relations to a new level, create the most favorable investment climate and corresponding legal landscape to attract investments, limit interference in the activities of any form of entrepreneurial entities, further simplify the licensing and permitting system necessary for their operations, and establish the required conditions for carrying out investment activities in the regions. Considering the interests of investors, several amendments have been introduced to our country's Tax Code. These include reducing the tax burden, further simplifying the taxation system, and creating a fair tax and customs system in a healthy competitive environment. Reforms are also beingcarried out toamend and supplement existing legislativedocuments. Reflecting on the experience accumulated over the past years, it becomes evident that there have been certain issues in protecting investors' rights, safeguarding these rights, and ensuring page1191 INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE ISSN:2692-5206,ImpactFactor:12,23 AmericanAcademicpublishers,volume05,issue06,2025 Journal: https://www.academicpublishers.org/journals/index.php/ijai their guarantees. These issues have long hindered the economic development of our country, as highlighted by our national leadership. To decisively address these problems, the President of the Republic of Uzbekistan issued Decree No. PF-5495 on August 1, 2018. This decree established a new framework aimed at ensuring investors' rights, effective from August 1, 2018. Specifically: If an investor acting in good faith uses property, enters into agreements, or benefits from privileges and advantages based on an administrative document issued by a state body, and such document is later annulled or deemed invalid, the investor shall be fully compensated for allincurred losses. If the annulment or amendment of an administrative document by a state body (or official) could affect the investor's interests, the matter of annulment or amendment shall be reviewed in court. If losses are incurred by an investor due to decisions, actions (or inactions) of state bodies, their officials, or employees that are found to be unlawful, such losses shall be fully compensated from targeted fundresources basedona court decision. The measures to ensure investors' rights did not stop with Decree No. PF-5495. As a result of consistent efforts, the Law of the Republic of Uzbekistan "On Investments and Investment Activity" was adopted on December 25, 2019. This law established a robust system of legal guarantees forinvestors in ourcountry. The lawincludes thefollowing guarantees: Guarantees against unlawful interference and harm in investment activities — The essence of this guarantee is that state bodies and their officials are not entitled to interfere in the lawful activities of investment entities. If state bodies or their officials identify violations of legislation in the activities of investment entities, they may only take measures within their authority that are directly related to addressing such violations. If violations are detected, state bodies and their officials may not interfere in or restrict other lawful activities unrelated to investment activities. State bodies can cause harm to investment entities in two ways: first, through actions contrary to existing laws by state bodies or officials; and second, through failure by state bodies or their officials to adequately fulfill their obligations toward foreign investors. Here, "harm" refers to monetary losses incurred by investors or enterprises due to unlawful actions by state bodies or officials, as defined in Article 14 of the Civil Code of the RepublicofUzbekistan. Guarantees against discrimination — The state guarantees that investors will not face discrimination based on citizenship, place of residence, location of economic activity, or the origin of the investors or investments. This guarantee ensures that our country treats investors from all nations equally and provides them with the same privileges or advantages under its legislation. Guarantees for the use and free transfer of funds — Foreign investors may reinvest or otherwise use profits and income earned during their activities after paying taxes and other mandatory payments under the laws of the Republic of Uzbekistan. Notably, the ability to freely bring in and transfer funds without bureaucratic barriers strengthens a country's appeal to foreign investors. They gain confidence that their profits and income will not