Uzbekistan, Republic of

The following notable changes were recently introduced to Uzbek legislation:

• Abolition of export privileges from 1 January 2025. The 0% corporate income tax (CIT) rate for the export of goods (services) is abolished, and income from exports will be included in the tax base for turnover tax.
• Starting from 1 January 2025, a 1% turnover tax is available for wholesale and retail pharmacy organisations and taxpayers in the retail trade sector located in remote and mountainous areas. 3% turnover tax will be applied to taxpayers engaged in electronic commerce of goods (works, services).
• For cigarettes, starting from 1 January 2025, the ad valorem rate of 10% of the cost is excluded from the excise tax rate calculation. From 1 July 2025, the rates for imported and local cigarettes will be equalised.
• From 1 February 2025 to 1 January 2030, foreign companies that are not tax residents of countries with which Uzbekistan has a double taxation treaty (DTT) are exempt from CIT if their annual volume of export IT services to residents of the IT park (including services for which royalties are paid) exceeds 10 million dollars United States dollars (USD).
• Since 1 January 2025, in accordance with the World Trade Organisation (WTO) agreement on subsidies and countervailing measures, income tax and turnover tax benefits for exporters and re-exporters of goods and services have been abolished.
• The excise tax on mobile communication services has been abolished.
• Starting from 1 April 2025, the excise tax will be extended to all soft drinks with sugar content. An excise tax of 500 Uzbekistani soum (UZS) per 1 litre is imposed on non-carbonated beverages (e.g. fruit drinks, lemonades, kvass), with the exception of juices made from fruits and (or) vegetables that are naturally sweet and do not contain additional sugar and other sweetening or aromatic substances.
• Carbonated drinks containing sugar or other sweetening or flavouring substances and packaged in consumer packaging (except for energy and toniс drinks) are subject to excise tax at UZS 500 per litre. Energy and tonic drinks are subject to excise tax at UZS 2,000 per litre.
• Since 1 January 2025, tax rates for the use of water resources have been increased by 10% for water users, including power plants, utilities, producers of soft drinks and alcoholic beverages, except beer and wine, and industrial enterprises. In accordance with the presidential decree (PP-107) dated 1 April 2023, water tax rates for other sectors will be gradually unified with industrial tariffs.
• As of 1 January 2025, tax benefits available to textile and knitwear enterprise exporters (earning at least 80% of revenue from foreign supplies) were not extended and considered abolished.
• From 1 January 2025 to 1 January 2028, companies that hire low-income employees with salaries above 1.5 times the minimum wage will pay a Social Tax (ST) rate of 1%.
• From 1 September 2024 to 1 September 2027, the ST for companies that employ students from schools, colleges, and technical schools under the age of 30 for vocational training is paid at 1% on income paid to them in the form of wages.
• Companies that hire foreign teachers are exempt from ST until 1 January 2030.
• Rent tax will not apply to rent income connected with extraction of natural resources on subsoil fields where the extraction started between 1 January 2024 and 31 December 2025. This exemption will apply for the entire period of extraction works.
• A number of goods (per government approved list) imported for construction, renovation, and equipping of hotels, business centres, and retail stores should be exempt from customs duties between 1 March 2024 and 1 March 2026 (e.g. special equipment, appliances, raw materials, components, furniture, construction materials).