Resident corporations pay CIT on their worldwide income, whereas non-residents (i.e. foreign legal entities that have a permanent establishment [PE] in Uzbekistan or have income from sources in Uzbekistan not associated with a PE) pay CIT on income resulting from activities/sources in Uzbekistan.
Non-resident corporations are taxed directly at the level of their Uzbek PE, if there is one, or via withholding tax (WHT) at the source of payment of the Uzbek-source income.
CIT is charged on taxable profit calculated as a difference between gross income and deductible expenses reduced by applicable incentives granted by the Tax Code, other laws, or presidential decrees.
The CIT rate is set in the Tax Code (previously, annually by presidential decree). In 2019, enterprises (i.e. legal entities) are generally subject to CIT at the rate of 12%. Commercial banks are subject to CIT at the rate of 20%.
At the same time, CIT for companies producing cement (clinker) and polyethylene granules increased from 14% to 20%.
Companies providing mobile services are subject to 20% income tax regardless of their profitability.
See the Withholding taxes section for WHT rates applicable in Uzbekistan.
Simplified tax regime
An optional simplified tax regime is available for all legal entities with annual turnover less than UZS 1 billion, which prescribes payment of one of the following taxes: unified tax payment (UTP), unified land tax (ULT), or fixed tax for certain types of entrepreneurs. For these taxpayers, the UTP, ULT, or fixed tax replaces the CIT, VAT, and certain other local taxes and duties.
From 2019, UTP payers shall also be subject to property, land, and water use taxes.
Legal entities that provide intermediary services under a commission agreement, instructions, and other intermediary services agreements set the maximum amount of annual turnover (revenue) calculated on the basis of turnover (transaction amount).
Excise and customs duties remain applicable for this group of taxpayers (unless a specific exemption applies). However, legal entities producing excise-liable goods or engaged in subsurface extraction cannot opt for the UTP regime.
The general UTP rate is 4%.
ULT is payable by agriculture companies, and the rate is 0.95% of normative value of agricultural land.