Uzbekistan, Republic of

Resident corporations pay CIT on their worldwide income, whereas non-residents (i.e. foreign legal entities that have a permanent establishment [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). Enterprises (i.e. legal entities) are generally subject to CIT at the rate of 15%. 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 January 2025, the 0% CIT rate for the export of goods (services) is abolished and income from exports will be included in the tax base for turnover tax.

The rate of CIT applicable to the following categories of the taxpayers may be reduced by 50%:

• CIT payers whose revenue generated throughout any tax period after 1 September 2022 exceeds UZS 10 billion for the first time, for the tax period in which this threshold is exceeded and for the tax period following it, provided that the revenue generated throughout the tax period in which the reduced rate is applied does not exceed UZS 100 billion.

From 1 January 2026, taxpayers switching from turnover tax to CIT for the first time are exempt from CIT, except on dividends and interest income, for one tax period following the year of transition. This relief does not apply to reorganised taxpayers.

See the Withholding taxes section for WHT rates applicable in Uzbekistan.

Simplified tax regime (i.e. turnover tax)

An optional simplified tax regime (turnover tax) is available to legal entities and individual entrepreneurs whose annual turnover does not exceed 12,000 BCU. Under this regime, turnover tax generally replaces corporate income tax (CIT) and value-added tax (VAT). Effective from 1 June 2026, the threshold for mandatory transition from the simplified tax regime to the general tax regime was increased from UZS 1 billion to 12,000 BCU.

The reporting period for turnover tax has been set to a month (instead of a quarter previously).

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  including importers, producers of excise-liable goods, legal entities engaged in subsurface extraction, sellers of petrol, diesel, and gas fuel, businesses engaged in the sale of pharmaceuticals and medical products or the provision of medical services, businesses engaged in the production and/or sale of jewellery, and a trusted person of a participant in a simple partnership in respect of activities carried out under the simple partnership agreement, except where such activities are performed under simple partnership agreements concluded with banks and microfinance organisations in relation to Islamic finance operations.

The general turnover tax rate is 4% but may vary from 0 to 25% depending on type of entity and services provided.

From 1 January 2025, 1% turnover tax is no longer available to legal entities located in established touristic zones.

From 1 January 2026, taxpayers switching from turnover tax to VAT and CIT for the first time are exempt from financial sanctions for late VAT registration, provided that VAT registration is completed within one year.