Verified Facts
The tax rates in Uzbekistan range from 8% to 23% for personal income, with a corporate tax rate of 14%, and a standard VAT rate of 15%, and expats need to understand the country's tax system, including residency rules and tax treaties, to navigate their tax obligations.
Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. This is a general guide only.
Quick Facts
Tax System Overview
Uzbekistan has a territorial tax system, meaning that individuals and businesses are taxed only on income earned within the country, except for resident individuals who are also taxed on their worldwide income. To be considered a tax resident in Uzbekistan, an individual must have a permanent home in the country, or spend more than 183 days in the country within a 12-month period. The tax year in Uzbekistan runs from January to December, and taxpayers are required to file their tax returns by April 15th of the following year.
The tax system in Uzbekistan is administered by the State Tax Committee, which is responsible for collecting taxes, enforcing tax laws, and providing tax guidance to taxpayers. The committee also has the authority to conduct audits and impose penalties on taxpayers who fail to comply with tax laws. Taxpayers in Uzbekistan can also seek assistance from tax consultants and accountants, who can help with tax planning, tax compliance, and tax disputes.
Personal Income Tax
| Income Bracket (UZS) | Tax Rate |
|---|---|
| 0 - 1,200,000 | 8% |
| 1,200,001 - 2,400,000 | 10% |
| 2,400,001 - 4,800,000 | 12% |
| 4,800,001 - 7,200,000 | 18% |
| 7,200,001 and above | 23% |
| Taxpayers in Uzbekistan are entitled to certain deductions and allowances, including a personal exemption of 1,200,000 UZS, and deductions for mortgage interest, charitable donations, and education expenses. Tax returns must be filed electronically, and taxpayers are required to pay their taxes in full by the filing deadline to avoid penalties and interest. |
Corporate & Business Tax
- The corporate tax rate in Uzbekistan is 14%, which applies to all business entities, including joint stock companies, limited liability companies, and partnerships.
- Small businesses with annual turnover of less than 1 billion UZS are eligible for a reduced tax rate of 5%.
- Uzbekistan has several free economic zones, which offer tax incentives and other benefits to businesses that operate within these zones.
- Businesses in Uzbekistan are required to register with the State Tax Committee and obtain a tax identification number before commencing operations.
- Companies are also required to file their tax returns and pay their taxes electronically, and are subject to audits and inspections by the tax authorities.
VAT / Sales Tax
- The standard VAT rate in Uzbekistan is 15%, which applies to most goods and services, including imported goods.
- A reduced VAT rate of 10% applies to certain goods and services, such as food products, medicines, and educational services.
- Certain goods and services are exempt from VAT, including exported goods, financial services, and real estate transactions.
- Tourists in Uzbekistan may be eligible for a VAT refund on certain purchases, such as hotel accommodation and tour packages, under the tourist refund scheme.
For Expats & Foreign Workers
- Expats and foreign workers in Uzbekistan are considered tax residents if they spend more than 183 days in the country within a 12-month period.
- Uzbekistan has double taxation treaties with 55 countries, which help to avoid double taxation and fiscal evasion.
- Expats and foreign workers are required to obtain a tax identification number and register with the State Tax Committee before commencing work in Uzbekistan.
- Expats and foreign workers may be eligible for certain tax allowances and deductions, such as a foreign earned income exemption.
- Expats and foreign workers are also required to comply with social security laws and make contributions to the Uzbekistan social security system.
- Remittances from Uzbekistan to other countries are subject to exchange control regulations and may require approval from the Central Bank of Uzbekistan.
Crypto & Investment Income
- Investment income, including dividends, interest, and capital gains, is subject to taxation in Uzbekistan.
- Cryptocurrency is considered a digital asset and is subject to taxation, including capital gains tax and VAT.
- Dividends paid to non-resident shareholders are subject to a withholding tax of 10%.
- Interest income earned by non-resident individuals is subject to a withholding tax of 10%.
- Taxpayers in Uzbekistan are required to report their crypto transactions and investment income on their tax returns and pay taxes accordingly.