Uzbekistan, Republic of
The tax period for CIT is a calendar year, and the reporting period is a quarter.
CIT is reported quarterly before the 20th day of the month following the reporting quarter both by Uzbek legal entities and PEs. The annual tax return is due by 1 March following the reporting year.
Payment of tax
Legal entities are required to make payments of their tax liability not later than the filing deadline for the respective reporting quarter.
Legal entities with annual income for the previous tax period exceeding UZS 5 billion are required to make advance payments on a monthly basis.
Monthly advance payments should be made by the 23rd day of each month.
Possible excess of advanced payments can be deferred to the future periods, set-off against liabilities on other taxes, or refunded by the tax authorities within 15 days after filing an application for refund.
Tax audit process
A new mechanism of tax control has been introduced, which prescribes that tax audits will be appointed based on the results of risk analysis. Specifically, taxpayers will be divided into three risk groups: high risk (red), average risk (yellow), and low risk (green). It is expected that taxpayers in the green group will not be audited, while taxpayers in the red group may be audited each year.
Risk analysis will be performed based on the following:
- Tax and financial reports on taxpayer.
- Information on taxpayer received from other state bodies.
- Tax risk criteria and segments.
A desktop tax audit consists of the inspection of the taxpayer's reports to the tax authority and their comparison with the data of state authorities, after which the taxpayer should make changes to the tax reports or provide reasonable arguments. After a desktop tax audit, financial sanctions will not be applied, but penalties may be accrued.As of 1 January 2022, the new ‘pre-desktop audit’ analysis concept was introduced into the Tax Code. This analysis shall be performed by special information systems of tax authorities based on tax reports filed by taxpayers.
An on-site tax audit is carried out to collect information on the calculation and payment of taxes and fees, as well as other obligations. Following the results of an on-site tax audit, additional taxes will not be charged.
A tax audit is a full-fledged study of compliance with tax legislation by a taxpayer who has a high degree of risk with significant turnover. Tax audits are conducted for taxpayers selected based on the results of the analysis of risk factors for non-payment of taxes. After a tax audit, additional taxes and financial sanctions may be applied.
Until 1 January 2022, the tax authority is required to notify the Business Ombudsman about the appointed tax audit.
Statute of limitations
The statute of limitations for tax purposes in Uzbekistan is set to five years.
Topics of focus for tax authorities
There are no officially announced areas of focus during tax audits. In practice, the tax authorities usually focus on currency control, cash discipline, deductibility of expenses for CIT purposes, and taxes on resources (e.g. excess profits tax, subsurface use tax).