The Civil Code of the Republic of Uzbekistan provides that enterprises can establish and operate branches. However, the by-laws governing procedures for establishing entities with foreign investments do not provide sufficient guidance on establishing branches of foreign legal entities, creating a practical problem with registering of branches of foreign legal entities. Instead, such entities use a PE registration to perform business activities without establishing an Uzbek company.
In addition to CIT, non-residents operating in Uzbekistan via PE pay so-called ‘net profits tax’ assessed at 10% on accounting profit less CIT.
Last Reviewed - 01 December 2017