Uzbekistan: Business Environment

Company Tax

15%

Tax Rate For Foreign Companies

Resident corporations are taxed on their worldwide income. Foreign companies that are considered permanently established entities are subjected to taxes on their profits from activities undertaken in Uzbekistan.
The Uzbeki tax code defines permanent establishment as “any place through which a non-resident carries out entrepreneurial activity in the Republic of Uzbekistan", including activity carried out through an authorised person. Permanent establishment is also existent where a non-resident carries on entrepreneurial activity for 183 days (or more) in any consequent 12-month period.
As of 1 January 2022, net profits (i.e. permanent establishment's taxable income less CIT) are subject to taxation at a tax rate of 10%).

Capital Gains Taxation

Capital gains are treated as ordinary income and are subject to the standard rate of profit tax. Gains are calculated as the difference between the selling price and the net book value of an asset.
Capital gains of non-resident companies are classified as "other" income and subject to withholding tax at a rate of 20%.

Main Allowable Deductions and Tax Credits

Deductions include depreciation, goodwill and certain start-up expenses (considered as expenses for procurement of intangible assets), interests expenses, and bad debts. Charitable contributions are generally not deductible, same as for fines and penalties. Taxes are deductible.
Production wastes and defects within statutory norms, and losses resulting in force-majeure circumstances, are generally deductible.
Losses from the disposal of fixed assets also may be deducted if the fixed asset has been used for at least three years.
Tax losses may be carried forward indefinitely. Loss carrybacks are not allowed.

Other Corporate Taxes

The other taxes applicable to companies include:
- property tax (1.5% for legal entities - was 2% before 2022)
- land tax (fixed fees that vary depending on the quality, location, and level of water supply of each land plot; 0.95% of the standard value for agricultural land - land plots allotted for exploration works are not subject to land tax)
- stamp duties
- water tax (depends on the source of water consumption)
- social tax (12% assessed on total payroll cost related to local and expatriate staff; 25% for budget organisations)
- tax on subsurface users (for companies exploring and extracting natural resources)
- license fee for the use of subsoil for geological exploration (calculated based on the allotted area and types of minerals)
- water usage tax (depending on the source of water consumption).

Other Domestic Resources

State Committee for Taxes

Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.

Tax Rate

Allowable Deductions and Tax Credits

Generally, under the Uzbeki law there are no deductions. However, certain categories of individuals are either fully exempt from personal income tax (for example, diplomats) or provided with an additional monthly deduction of four amounts of the statutory minimum monthly wage, including veterans, disabled people, widows/widowers with children, and women with many children, among others.
In the case of entrepreneurial activity, expenses and mandatory payments and charges associated with such activities may be deducted.

Special Expatriate Tax Regime

Non-residents are taxable only on income sourced in Uzbekistan, whereas residents are taxed on their worldwide income.
An individual who is present in Uzbekistan for 183 days or more during any 12-month period is considered a resident for tax purposes.
Non-resident individuals are subject to different tax rates (see above).