Uzbekistan, Republic of
Resident corporations pay CIT on their worldwide income, whereas non-residents (i.e. foreign legal entities that have a PE in Uzbekistan or have income from sources in Uzbekistan not associated with a PE) pay CIT on income resulting from activities/sources in Uzbekistan.
Non-resident corporations are taxed directly at the level of their Uzbek PE, if there is one, or via withholding tax (WHT) at the source of payment of the Uzbek-source income.
CIT is charged on taxable profit calculated as a difference between gross income and deductible expenses reduced by applicable incentives granted by the Tax Code, other laws, or presidential decrees.
The CIT rate is set in the Tax Code (previously, annually by presidential decree). In 2021, enterprises (i.e. legal entities) are generally subject to CIT at the rate of 15%.
Net profits remaining at the disposal of a non-resident operating through a PE is subject to taxation at the rate of 10% (see the Branch income section).
Commercial banks, producers of cement (clinker) and polyethylene granules, mobile services providers, and markets/shopping malls are subject to CIT at the rate of 20%. From 1 October 2021, the CIT rate is reduced from 20% to 15% for producers of cement (clinker).
See the Withholding taxes section for WHT rates applicable in Uzbekistan.
Simplified tax regime
An optional simplified tax regime is available for all legal entities with annual turnover less than 1 billion Uzbekistani soum (UZS) and individual entrepreneurs with turnover ranging from UZS 100 million to UZS 1 billion. Under this regime, turnover tax replaces CIT and VAT.
Legal entities that provide intermediary services under a commission agreement, instructions, and other intermediary services agreements, including individual entrepreneurs providing intermediary services to telecom operators, calculate revenue from sale of goods/services on the basis of the transaction amount.
Certain taxpayers are not eligible for application of turnover tax (e.g. importers, producers of excise-liable goods, legal entities engaged into subsurface extraction, sale of petrol, diesel/gas fuel).
The general turnover tax rate is 4% but may vary from 1 to 25% depending on type of entity and services provided.