Uzbekistan, Republic of

Corporate - Significant developments

Last reviewed - 01 August 2022

The following notable changes were introduced to Uzbek legislation:

  • From 1 July 2022 transactions with securities carried out at the organized over-the-counter trades are subject to a special fee of 0.3% of the transaction value payable by a seller (except for the issuer) in lieu of income tax – yet to be included into the Tax Code.
  • For the period from 1 April 2022 to 31 December 2024, income of legal entities -non-residents of Uzbekistan in the form of dividends from shares in joint stock companies shall be subject to a reduced 5% tax rate (same as tax rate applicable to residents of Uzbekistan).
  • Transfer pricing, controlled foreign corporations (CFCs), and group taxation rules are introduced in the Tax Code (all effective from 1 January 2022).
  • From 1 January 2022, the property tax rate for legal entities is reduced from 2% to 1.5%.
  • As of 1 January 2022, net profits of the non-resident operating through permanent establishment after payment of CIT are considered as dividends and subject to taxation at a tax rate of 10%.
  • From 1 January 2022, increased the size of the investment deduction from 10% to 20% for funds allocated for new technological equipment, and from 5% to 10% for the expansion of production in the form of a new construction.
  • From 1 January 2022, the annual maximum depreciation rates increased by groups (buildings from 3% to 5%, constructions from 5% to 10%, transmission devices from 8% to 15%, machines and equipment from 15% to 20% and computer, peripheral devices from 20% to 40%).
  • Tax losses can be carried forward indefinitely, thus reducing the taxable income of the respective year.
  • Certain categories of taxpayers, including agricultural producers and law firms, may also be subject to VAT.
  • The mandatory requirement for a separate application to tax authorities for VAT refund is abolished. Starting from 1 January 2022, a taxpayer shall have an option to notify tax authorities on VAT refund during submission of tax returns for the relevant tax period.
  • From 1 January fee for the purchase and (or) temporary import of vehicles into the territory of the Republic of Uzbekistan is cancelled.
  • As of 1 January 2022, a rent tax for subsoil users engaged in extraction of oil, natural gas, gas condensate, as well as precious, non-ferrous, rare and radioactive metals at new fields will be introduced.
  • A special procedure is introduced for tendering of subsoil rights for geological exploration and/or production in respect of previously explored fields having significant commercial potential (i.e., hydrocarbons, precious metals, non-ferrous, rare and radioactive metals and other types of minerals). The cost of subsoil rights acquired replaces commercial discovery and signing bonuses, which are abolished (effective from 1 January 2022).
  • An annual license fee is introduced for the use of subsoil for geological exploration. It is calculated based on the allotted area and types of minerals, in the amounts established by legislation (effective from 1 January 2022).
  • Land plots allotted for exploration works are not subject to Land Tax (effective from 1 January 2022).
  • From 1 January 2022, the excise tax on import of tobacco, cigarettes are decreased by about 10%. However, on the import of some certain types of tobacco products (for example, hookah tobacco, smoking tobacco, pipe tobacco, etc.) the rate is increased by about 10%.