Uzbekistan, Republic of

Corporate - Branch income

Last reviewed - 26 January 2022

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.

Generally, taxation of PE’s income is similar to that of Uzbek legal entity, i.e., income of PE is subject to CIT at the rate of 15%.  As of 1 January 2022, net profits (i.e. PE's taxable income less CIT) are subject to taxation at a tax rate of 10%, which aligns the PE taxation with Uzbek legal entities that pay a 10% dividends withholding tax.