Overview of the most important taxes for entrepreneurs in Uzbekistan

Here is a summary of the most important taxes that affect entrepreneurs in Uzbekistan.

Corporate taxes

Corporation tax (KSt)

• Resident companies pay CIT on their worldwide income, while non-residents (e.g. foreign entities with a permanent establishment in Uzbekistan or income from Uzbekistan that is not related to a permanent establishment) pay CIT on income from activities/sources in Uzbekistan.
• The corporation tax is calculated on the taxable profit, which is the difference between the gross income and deductible expenses less applicable incentives in accordance with the tax law.
• The general VAT rate is 15%, but certain industries such as banks, manufacturers of cement (clinker) and polyethylene granulate, mobile phone providers and markets/shopping centers are subject to a rate of 20%.

Simplified tax system (value added tax)

• An optional simplified tax regime is available to all legal entities with an annual turnover of less than 1 billion UZS (~ 73'000 EUR per exchange rate on 10.03.2024) and sole traders with a turnover of 100 million (~ 7'300 EUR per exchange rate on 10.03.2024) up to 1 billion UZS. Under this regime, sales tax replaces CIT and VAT.
• The general VAT rate is 4%, but can vary from 1 to 25% depending on the type of business and the services provided.

Value added tax (VAT)

• Legal entities are subject to VAT, which is applied to the turnover of goods and services. The taxable turnover is 12%.
• The reporting and tax payment deadlines are monthly.

Social tax (ST)

• Employers are subject to ST, which is levied on the total wage costs for local and foreign employees. The rate is 12% for all types of companies.
• In addition to ST, employers are responsible for withholding income tax and contributions to the pension fund from salaries.

Determination of income and capital gains

Capital gains

• A capital gain is essentially the difference between the selling price or the amount realized for a business asset and its acquisition price, reduced by the incidental costs of sale and acquisition as well as depreciation costs.
• Non-resident companies are subject to a withholding tax rate of 20% on capital gains.

Dividend income

• Dividends paid by a domestic subsidiary to non-resident companies are subject to a withholding tax of 10%. For resident companies, the withholding tax is 5%.
• Interest paid to non-residents is subject to a withholding tax of 10%.

This tax summary provides an insight into the most important taxes for entrepreneurs in Uzbekistan. However, it is advisable to check the exact provisions of the tax law and seek professional advice if necessary.

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This table provides a quick overview of the most important tax rates for entrepreneurs in Uzbekistan.