Uzbekistan, Republic of

Individual - Significant developments

Last reviewed - 31 October 2019

Legislation in the Republic of Uzbekistan is constantly evolving during this period of economic transition from the pre-independence socialist economy. The information presented below is based on laws, regulations, and practices as of August 2019.

  • Personal income tax (PIT) is charged at a flat rate of 12% (previously, charged at progressive rates ranging between 7.5% and 22.5%).
  • The rate of contributions to the individual accumulative pension system decreased from 2% to 0.1%. Please be reminded that this is not an additional contribution and merely reduces PIT payable to the state budget.
  • The new flat rate also applies to certain types of income that previously were subject to the minimal tax rate of 7.5%, including rent income, capital gain from sale of personal real estate, etc.
  • Dividends and interest income received by individuals (residents of Uzbekistan) are subject to taxation at 5% (previously, 10%).
  • Individual Pension Fund Contribution (PFC) of 8% was abolished as of 1 January 2019.
  • Unified Social Payment (USP) is generally reduced from 25% to 12%. However, 25% USP will remain payable by state organisations, legal entities with state participation of at least 50%, as well as legal entities where at least 50% belongs to the latter.
  • The minimum monthly amount of the USP was abolished.
  • USP also extends to certain new categories of taxpayers, including individual entrepreneurs and their employees, members of family enterprises, farming enterprises, artisans, etc.
  • Water use tax rates for individuals are raised by approximately 40% as of 1 January 2019.

As 1 August 2019, minimum monthly wage (MMW) is set at 223,000 Uzbekistani som (UZS).