Uzbekistan, Republic of

WHT is to be withheld and remitted to the state budget by entities paying income to non-residents if these entities qualify under a tax agent definition (i.e. by [i] Uzbek legal entities and [ii] non-residents operating in Uzbekistan via PE).

Income of non-residents subject to WHT (including income in the form of dividends, interest, and royalties) is to be paid without withholding of WHT at source or with application of a reduced WHT rate as provided by the tax treaty (with certain exemptions), provided that there is a duly formalised tax certificate issued by a competent authority confirming that non-residents are registered for tax purposes in the state with which Uzbekistan has the effective tax treaty.

The domestic WHT rates are as follows:

Double taxation treaty (DTT) relief

Foreign legal entities that do not carry on activities in Uzbekistan through a PE are subject to WHT on income from sources in Uzbekistan, subject to the terms of a relevant DTT. Uzbekistan has enforced DTTs with 55 countries.

DTTs in force establish WHT rates as follows:

Notes

1. 1. Where the beneficial owner directly or indirectly controls/holds at least 10% of the voting power.
   2. Where the beneficial owner directly or indirectly controls at least 10% of the voting power (other than where the dividends are paid by an investment vehicle).
2. 1. Where the beneficial owner directly holds/controls at least 10% of the capital of the paying entity.
   2. Where the beneficial owner (other than a partnership) directly holds/controls at least 10% of the capital of the paying entity.
3. Where royalties are paid for patents, trademarks, know-how, etc.
4. Where royalties are paid for copyrights on literature, cinema, musical works, etc.
5. Where royalties are paid for secret formulas, processes, or know-how.
6. Where royalties are paid for computer software, patents, designs, models, or plans.
7. Where one of the following conditions is met:
   1. The payer of interest is the government of that contracting state or a local authority thereof.
   2. Interest is paid in respect to debt claims or loans guaranteed, insured, or aided by the state or on behalf of the state.
   3. Interest is paid in respect to credit sales of industrial, commercial, or scientific equipment, goods and merchandise, or provision of services by an enterprise to another enterprise.
   4. Interest is paid in respect to a loan of any kind granted by a bank.
   5. A recipient is the state, local authority, the national bank, or any other similar financial institution wholly owned by the state, including the following:
      • in the case of United Arab Emirates, it also includes the Abu Dhabi Investment Authority, the Abu Dhabi Fund for Economic Development, or any other similar government institution that will be agreed by the competent authorities of the contracting states.
      • In the case of Finland, it also includes the Finnish Fund for Industrial Co-operation Ltd (FINNFUND) or any other similar institution wholly or mainly owned by the State of Finland, as may be agreed from time to time between the competent authorities of the contracting states.
      • In the case of Germany, it also includes the Banking Institute for Reconstruction, the German Financing Company for Investment in Developing Countries, or another similar institution, as well as loans secured by Hermes Credit Insurance Corp.
      • In the case of Hungary, it also includes the Eximbank Hungary Pte Ltd.
      • In the case of Malaysia, it also includes the Export-Import Bank of Malaysia Berhad (EXIM Bank) and the Bank Negara Malaysia.
      • In the case of Oman, it also includes the State General Reserve Fund, the Omani Investment Fund, and any other statutory body or institution wholly or mainly owned by the government of the Sultanate of Oman, as may be agreed between the competent authorities of the contracting states.
      • In the case of Thailand, it also includes the Export-Import Bank of Thailand.
      • In the case of Turkey, it also includes Turkish Eximbank.
   6. Interest paid in respect of a loan made, guaranteed, or insured or a credit extended, guaranteed, or insured by public entities the objective of which is to promote the export.
8. 1. Where the beneficial owner holds at least 25% of the capital of the paying entity.
   2. Where the beneficial owner (other than a partnership) holds at least 25% of the capital of the paying entity.
   3. Where the beneficial owner (other than a partnership) directly holds at least 25% of the capital of the paying entity.
   4. Where the beneficial owner holds at least 25% of the capital of the paying entity throughout a 365-day period.
   5. Where the beneficial owner (other than a partnership) directly holds at least 25% of the capital of the paying entity throughout a 365-day period.
   6. Where the beneficial owner directly holds at least 25% of the capital of the paying entity.
   7. Where the beneficial owner directly holds at least 25% of the capital of the paying entity throughout a 365-day period.
9. Where royalties are paid in respect to use or the right to use industrial, commercial, or scientific equipment.
10. 1. Where the beneficial owner holds no less than 20% of the capital of the paying company.
    2. Where the beneficial owner (other than a partnership) directly holds no less than 20% of the capital of the paying company.
11. Where the interest is received by any financial institution (including insurance companies).
12. Under the provisions of the Netherlands’ Company Tax Act and the future amendments thereto, a company that is a resident of the Netherlands is not charged to Netherlands company tax with respect to dividends the company receives from a company that is a resident of Uzbekistan.
13. If and as long as the Netherlands, under its national legislation, levies no WHT on interest or royalties paid to a resident of Uzbekistan, the WHT rate for interest and royalty income paid at source in Uzbekistan shall be reduced to 0%.
14. Where the beneficial owner directly holds at least 25% of the property of the company paying the dividends throughout a 365-day period that includes the day of the payment of the dividend.
15. On 6 June 2023, the government of the Republic of Uzbekistan and the government of the State of Qatar signed the Agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and property. However, the official text of the Tax Treaty has not been published yet; consequently, the applicable treaty rates, covered persons, limitations, and other conditions are not available at the moment. Agreement shall still be ratified by both contracting parties before entering into force.