The taxable period for CIT is a calendar year.
CIT is reported quarterly before the 25th day of the month following the reporting quarter, with an annual return due by 25 March following the reporting year for enterprises with foreign investment and 15 February following the reporting year for other categories of CIT payers. PEs report on CIT once a year prior to 25 March following the reporting year.
Payment of tax
Uzbek enterprises, including enterprises with foreign investment, are required to make advance instalments of CIT in each quarter based on estimated profits in the quarter. The instalments are payable by the tenth day of each month. Final quarterly payments based on actual profit figures are payable no later than the filing deadline for the quarterly tax returns (which is the 25th day of the month following the period of assessment). In case the final quarterly payment is more than 10% higher than advance instalments made in this quarter, tax authorities have the right to recalculate the advance instalments based on the actual quarterly profit figures and charge late payment interest accordingly.
Final CIT payment should be made no later than the date set as the deadline for annual return submission.
Payment of CIT by a PE is made annually within a month after the filing deadline.
Tax audit process
Scheduled statutory tax audits are to be carried out once in three years (once in four years for micro-firms, small enterprises) by the tax authority of the district where the enterprise is registered (i.e. district tax inspectorates). However, in certain cases, the tax audit is undertaken by the State Tax Committee, which is the highest tax authority.
The tax audits are aimed at verification of the tax returns submitted by the taxpayer. Normally, the tax authorities will review the accounting records, copies of tax returns, and source documents as required.
Effective 1 January 2017, all types of unscheduled audits of business entities were abolished, except for audits due to liquidation of legal entity or short-term audits carried out exclusively by decision of the Republican Council on coordination of regulatory authorities. Also, all types of cross audits of business entities, including those under criminal investigation, were abolished.
Article 10 of the Law ‘On state control of activities of business entities’ was supplemented by a provision stating that scheduled tax audits of private banks and other private financial institutions are to be carried out not more than once in five years.
In case of tax breaches revealed during tax audits, taxpayers should remove tax violations and pay respective taxes/obligatory payments and late payment interest within 30 days after the tax authority’s decision is released. If accomplished within the deadline, the tax authority’s decision on applying penalty may be cancelled. If not accomplished, the unpaid taxes/obligatory payments and late payment interest are to be withdrawn from (i) the taxpayer’s bank accounts (by issuing tax liability claim without acceptance), (ii) the taxpayer’s debtors (by issuing tax liability claim on the debts payable to taxpayer), or (iii) the taxpayer’s property (by issuing tax liability claim upon decision of the court).
Another form of monitoring accuracy and completeness of fulfilment of tax liabilities imposed by the tax authorities is ‘cameral control’, which is performed at the time of tax returns submission. The tax authorities may require the taxpayer to amend the tax return(s) if they have revealed mistakes or inconsistencies therein. The amended tax returns should be filed within ten days.
Statute of limitations
The statute of limitations for tax purposes in Uzbekistan is set to five years.
Topics of focus for tax authorities
There are no officially announced areas of focus during tax audits. In practice, the tax authorities usually focus on currency control, cash discipline, deductibility of expenses for CIT purposes, and taxes on resources (e.g. excess profits tax, subsurface use tax).