Uzbekistan, Republic of

Individual - Income determination

Last reviewed - 06 February 2024

Employment income

Taxable income of an individual includes the following items:

  • Income from employment, including:
    • All payments accrued and paid to individuals under employment or civil contracts (except for income from individual entrepreneurs).
    • Motivation payments (e.g. annual bonuses, professionalism and tutorship allowances, long-service premiums).
    • Compensation payments (e.g. hardship and overtime allowances, per diems exceeding statutory norms).
    • Payments for time off (e.g. various vacation pay, attendance of qualification courses).
  • Income in the form of material benefits, including, without limitation:
    • Payments for goods/services made by employers in favour of their employees (e.g. utilities, food allowance).
    • Gifts, goods (works or services) donated.
    • Discounts to employees for goods (works or services) produced.

Equity compensation

There are currently no special rules for the taxation of stock option plans. Tax treatment is based on the general provisions of the tax law, which do not prescribe taxation of the income unless an employee exercises one's option and purchases stock at the below-market cost.

Business income

Individuals receiving income from entrepreneurial or similar activities are supposed to be properly registered as individual entrepreneurs. If revenue from the sale of goods/services does not exceed UZS 100 million in a calendar year, individual entrepreneurs can choose to pay income tax on the basis of PIT declaration at the rate 12% or pay tax in a fixed amount depending on the type of activity. In case sales turnover exceeds UZS 100 million but not more than UZS 1 billion, it will be subject to turnover tax. If the sales turnover is more than UZS 1 billion, then VAT and corporate income tax (CIT) is applicable instead of turnover tax.

If applicable, individual entrepreneurs are subject to payment of other taxes, including:

  • Customs duties.
  • Water use tax.
  • Excise tax.
  • State duty.
  • Contributions to Road Fund for the acquisition and (or) the temporary importation of vehicles.

Capital gains

Capital gains of residents are taxed at the generally applicable PIT rate. Capital gain from sale of immovable property is taxed at 12%. Taxable basis shall comprise the difference between the sales price and the acquisition price (in case the acquisition price cannot be determined, taxable base should comprise sales price of the asset, while for immovable property taxable base shall be the difference between sales price and inventory value of the property).

Capital gains of non-residents from sale of property located in Uzbekistan are taxed at the 20% rate. In case of absence of the documents supporting the acquisition prices of such property, PIT will be assessed on the sales price.

Dividend income

Taxable income of an individual includes dividend income.

Dividends received by residents are taxed at the 5% rate, and dividends received by non-residents are taxed at the 10% rate. 

For the period from 1 April 2022 to 31 December 2024, income of individuals (both residents and non-residents of the Republic of Uzbekistan) in the form of dividends from shares in joint stock companies is exempt from PIT (yet to be included into the Tax Code).

Interest income

Taxable income of an individual includes interest income. However, interest income received from bank deposits is exempt from PIT.

Interest income received by residents is taxed at the 5% rate, and interest received by non-residents is taxed at the 10% rate.

Rental income

Taxable income of an individual includes rental income. Income of residents from rent of property is taxed at the 12% PIT rate, on the contract price. However, the rental fee shall not be less than the fixed rate established for 1 square metre.

Rental income received by non-residents should be taxed at source of payment at the 12% rate.

Royalty income

A royalty is payment for the use of, or right to use, any intangible asset, including:

  • usage and granting of the right to use works of science, literature, and art, including software programs, audio-visual production, and objects of related rights, including performances and soundtracks
  • usage of a patent (certificate) confirming the right to an industrial property object, a brand (service mark), a trademark, design or model, plan, secret formula or process, or information (know-how) concerning industrial, commercial, or scientific expertise, and
  • information about industrial, commercial, or scientific experience (know-how).

Royalties paid to non-residents companies with no permanent establishment (PE) are subject to a withholding tax (WHT) at 20% as 'other' income. The obligation to withhold and pay the tax on income of a non-resident of Uzbekistan is levied on the payer of the royalty, a tax agent.

Royalty income of residents is taxed at the generally applicable PIT rate of 12%.

Other income

Taxable income of an individual also includes, without limitation, prizes and lottery winnings.

Exempt income

The following is a representative list of items exempt from personal taxation:

  • Qualified financial aid, within established limits.
  • Compensation of trips for people with disabilities and for children of the employees under 18.
  • Compensation for medical care of the employees.
  • Income in foreign currency received from budget organisations.
  • Income from the sale of property (with certain exceptions).
  • Amount of the prizes received from international competitions.
  • Gifts received from employers during the tax period, within established limits.
  • Money and property inherited.
  • Long-term life insurance premiums if these are paid to legal entities that have an Uzbek insurance licence and other eligibility criteria are met.
  • Income received gratuitously from close relatives in the form of shares and stock.
  • Payments of up to UZS 3 million per month that parents make for the education of children in non-state preschool educational organisations and schools.
  • Bank interest from deposits with banks.