Tax Guide for Foreign Companies in Uzbekistan 2026 — Rates, Regimes & Compliance
Reading time: ~18 min │ Updated: June 2026 (includes presidential decree of 29 May 2026)
Uzbekistan is one of the few markets where a foreign entrepreneur can legally pay tax at just 1% of revenue. Over the past five years, the country’s tax system has undergone a sweeping reform — replacing cumbersome Soviet-era mechanisms with transparent, competitive regimes.
But there is a flip side: choosing the wrong tax system from the start can cost you tens of thousands of dollars in unnecessary expenses every year.
This guide covers every active tax regime in Uzbekistan — including the significant changes introduced by presidential decree on 29 May 2026. By the end, you will know exactly which system fits your business — and why.
⚡ JUNE 2026 UPDATE — New Presidential Decree
On 29 May 2026, President Mirziyoyev signed a decree simplifying the tax regime for small businesses, effective 1 June 2026. Five key changes affect foreign-owned companies directly:
•→ STS threshold raised: mandatory transition to the general tax system now triggers at 12,000 BCU (∼4.5 billion soums / ~$350,000) — up from 1 billion soums (~$85,000)
•→ New simplified VAT at 6%: voluntary regime for trade, services and food service — profit tax zeroed out, available until 2030
•→ Automatic VAT refunds: negative VAT balances up to 10 million soums refunded automatically — no application, no audit
•→ Audit moratorium until 2028: tax audits suspended for small businesses with risk below 500 million soums
•→ Double deduction from 2027: accounting and tax consultant fees deductible at 2× the actual amount paid
Full details in the dedicated article: Uzbekistan Small Business Tax Reform 2026
📋 Quick Overview: All Tax Systems
•Simplified Tax System (STS): 1% of revenue — for sole traders and SMEs up to ~$350,000 annual revenue (raised June 2026)
•Simplified VAT Regime (NEW): 6% VAT on turnover + 0% profit tax — voluntary, until 2030, for trade/services/food service
•General Tax System (GTS): 15% corporate tax + 12% VAT — for medium and large businesses, no revenue ceiling
•Patent System: fixed quarterly amount — sole traders only, limited activity list
•SEZ / IT Park: 0–7% or full exemption — for manufacturing, IT and export businesses
1. Simplified Tax System (STS) — The Most Popular Starting Point
The Simplified Tax System is the most widely used regime among small and medium-sized businesses in Uzbekistan. Most foreign entrepreneurs begin here.
Key point: the tax is calculated on revenue (turnover), not profit. Even if your business breaks even or runs at a loss, the tax is still due. This is the essential difference from European corporate income taxes.
Who Can Use the STS?
•Individual entrepreneurs (sole traders) and LLCs
•Annual revenue must not exceed 12,000 BCU ≈ 4.5 billion soums (~$350,000) — ⚡ UPDATED June 2026 (previously: 1 billion soums)
•Maximum of 100 employees
STS Tax Rates
•Sole trader and LLC (trade, services, IT): 1% of gross revenue
•Manufacturing companies: 1% of gross revenue
•Construction: 3% of gross revenue
What the STS Replaces
•VAT (Value Added Tax)
•Corporate income tax
•Corporate property tax
•Urban development and social infrastructure tax
What Remains Under the STS
•Unified Social Payment (USP) — 12% of the payroll fund (paid by employer)
•Personal Income Tax (PIT) on employee salaries — 12%
•Land tax and water use tax (where applicable)
Reporting Under the STS
•Quarterly tax return
•Tax payment — quarterly, by the 20th of the month following the quarter
•Annual return — by 20 January of the following year
✅ STS is the right choice if:
•You are just starting out and revenue is still modest
•Your business is in trade, services, consulting, or IT outsourcing
•You want minimal tax burden and straightforward reporting
•You do not plan to work with large state-owned companies that require VAT invoices
❌ STS is not suitable if:
•Your annual revenue exceeds 4.5 billion UZS (~$350,000)
•Your partners are VAT payers and need input VAT invoices
•You plan to participate in government procurement tenders
1b. Simplified VAT Regime at 6% — ⚡ NEW from 1 June 2026
This regime was introduced by presidential decree on 29 May 2026. It is separate from the standard STS and the general VAT system. Available to eligible small businesses voluntarily until 1 January 2030.
How it works
•VAT rate: 6% of total turnover from goods and services (vs. standard 12%)
•Profit tax: 0% — zeroed out entirely
•Profit tax reporting: eliminated — no obligation to file profit tax returns
•Available to: trade, services, food service companies — not state-owned, not large taxpayers
•Duration: until 1 January 2030
What it does not include
•No VAT input credit — VAT paid on purchases cannot be offset against VAT collected
•Not available to companies with 50%+ state ownership
•Not available to large taxpayers
Practical calculation: if your company earns 500 million soums in revenue and has limited input VAT to reclaim, the simplified regime means: 6% × 500M = 30M soums in tax, zero profit tax. Under the standard GTS with 12% VAT and 15% profit tax the total burden would be significantly higher.
See full breakdown in: Uzbekistan Small Business Tax Reform 2026
2. General Tax System (GTS) — Standard Regime for Growing Businesses
The General Tax System is the default regime for medium and large businesses. It is more complex than the STS, but gives access to a broader range of clients and imposes no revenue ceiling.
Core Taxes Under the GTS
•Corporate income tax: 15% — on net profit (revenue minus expenses), quarterly + annual
•VAT: 12% — on value added, monthly
•Property tax: 1.5% — on average annual value of assets, quarterly
•Land tax: regional rates — on land area, annual
•Unified Social Payment (employer): 12% of payroll fund, monthly
•Personal Income Tax (employees): 12% of salaries, monthly
Corporate Income Tax: A Closer Look
•Revenue: sales proceeds + non-operating income
•Deductible expenses: cost of goods, salaries, rent, depreciation, loan interest, and others
•Losses can be carried forward for up to 5 years
•From 2027 (NEW): accountant and tax consultant fees are deductible at 2× the actual amount paid
VAT Under the GTS: A Closer Look
•Output VAT: 12% charged on your sales invoices
•Input VAT: 12% charged by your suppliers, which you can offset
•Net VAT payable: output VAT minus input VAT
Example: you sell goods worth 100 million UZS. Output VAT = 12 million. You purchased materials for 60 million UZS with 7.2 million input VAT. Net VAT due to the state: 12 – 7.2 = 4.8 million UZS.
VAT Refunds — ⚡ UPDATED June 2026
•Negative VAT balances up to 10 million soums will be refunded automatically — no application required
•From 2027: fully automated VAT refund system for low-risk taxpayers, no human involvement
✅ GTS is the right choice if:
•Your revenue exceeds 4.5 billion UZS or is expected to within the year
•Your clients are VAT payers (state-owned enterprises, large businesses)
•You plan significant deductible expenses that reduce taxable profit
•You participate in government procurement or work with state entities
3. Patent Tax System — Maximum Simplicity for Sole Traders
The patent is a special tax regime for individual entrepreneurs engaged in specific activities. You pay a fixed amount once a quarter — and that is your only tax obligation.
How the Patent Works
•The fixed tax amount is set by local authorities for each type of activity
•The amount depends on the region, activity type, and premises size (where applicable)
•No income reporting required — you do not need to track revenue
•Patents are issued for 1 quarter, 6 months, or 1 year
Activities Covered (Examples)
•Retail trade at markets and small outlets
•Personal services (hairdressers, shoe repair, tailoring)
•Freight and passenger transport (taxis, private drivers)
•Catering (small cafés, teahouses)
•Private tutoring and lessons
•Household and appliance repair
Limitations
•Available only to individual entrepreneurs — not LLCs
•Limited list of eligible activities
•Restrictions on hiring employees beyond set limits
•Not suitable for import/export operations
4. Special Economic Zones (SEZ) and IT Park
Uzbekistan is actively developing special economic zones and technology parks offering foreign investors exceptional tax incentives.
Active SEZs in Uzbekistan (2026)
•Navoi (FIEZ): manufacturing, logistics, trade — 0% corporate tax for up to 30 years
•Angren (AIEZ): manufacturing, processing — 0–7% corporate tax, customs exemptions
•Jizzakh (JIEZ): manufacturing, light industry — full tax exemption for up to 10 years
•IT Park Tashkent: IT, digital services, startups — 0% corporate tax, 0% VAT, 0% USP
•Urta-Saroy: agro-industry, food processing — preferential tax treatment
IT Park: Special Conditions for Technology Businesses
•Corporate income tax: 0%
•VAT: 0%
•Unified Social Payment: 0%
•Import customs duties on equipment: 0%
•Streamlined work permit process for foreign specialists
•Fully remote operation allowed — no physical office in the park required
Requirements to Join IT Park
•Company must be registered in Uzbekistan
•At least 80% of revenue from IT activities (software development, IT services, digital products)
•Export share: at least 20% from April 2026 (rising to 35% by 2027)
•Application submitted to and approved by the IT Park management company — 15 working days
5. Payroll Taxes: PIT and Unified Social Payment
Regardless of which tax system you choose, the moment you hire employees, payroll tax obligations arise.
•Personal Income Tax (PIT): 12% — withheld by employer from gross salary
•Unified Social Payment (USP): 12% — employer pays on top of salary
•Total payroll cost: ~24% of gross salary
Calculation example: you accrue a salary of 5,000,000 UZS. The employee receives 4,400,000 UZS net (after 12% PIT). You additionally pay 600,000 UZS USP. Your total staff cost: 5,600,000 UZS. Compare with Western Europe where total payroll burden is typically 35–50%.
Foreign Employees
•Foreign nationals employed in Uzbekistan are also subject to PIT at 12%
•The employer must obtain a permit to hire foreign labour
•IT Park residents benefit from a simplified procedure for foreign specialists
6. Dividend Tax and Profit Repatriation
One of the most important questions for a foreign investor: how do you take money out of Uzbekistan — and how much tax is due?
•Dividends to residents: 5% withholding tax
•Dividends to non-residents: 10% — may be reduced under DTT
•Interest on loans to non-residents: 10% — may be reduced under DTT
•Royalties to non-residents: 20% — may be reduced under DTT
Double Taxation Treaties (DTT)
Uzbekistan has signed DTTs with more than 50 countries:
•Russia: dividends 5–10%
•Germany: dividends 5–15%
•Austria: dividends 5–15%
•UK: dividends 5–10%
•USA: dividends 5–10%
•China: dividends 10%
•South Korea: dividends 5–10%
•Singapore: dividends 5–10%
To apply a reduced withholding rate, you must present a certificate of tax residence from your home country to the Uzbekistan tax authority before the dividend payment.
7. Tax Administration — ⚡ Major Changes from June 2026
The June 2026 presidential decree introduced the most significant changes to tax administration in recent years. These directly reduce compliance risk for foreign-owned small businesses.
Audit Moratorium until 2028
Until 1 January 2028, tax audits are effectively suspended for most small businesses:
•Tax risk below 500 million soums: no tax audit — self-correction is allowed instead
•Tax risk below 100 million soums: no field inspection (выездная проверка) at all
•Self-correction mechanism: if a tax risk is identified, the business corrects it independently without triggering a formal audit
Automatic VAT Refunds
•VAT balances up to 10 million soums: refunded automatically, no application required
•From 2027: real-time automated VAT refund system for low-risk taxpayers
Double Deduction for Professional Services (from 2027)
•Expenses for accountants and tax consultants: deductible at 2× the actual amount paid
This means outsourcing your accounting to UZ2B becomes effectively subsidised by the tax system — see our accounting service
8. Tax Regime Comparison: Which One Fits Your Business?
You are starting a new company in services, consulting, or trading (revenue under $350K):
•STS at 1% of revenue is the standard starting point
•Consider the new simplified VAT at 6% if you want to handle VAT-registered clients without full GTS complexity
You are a technology company or digital agency:
•IT Park — 0% corporate tax, 0% VAT, 0% USP. The most tax-efficient regime available in Uzbekistan
•UZ2B handles IT Park registration: contact us
Your revenue exceeds $350,000 or you need to issue VAT invoices:
•GTS with standard 12% VAT and 15% profit tax
•VAT input credit available — viable if you have significant deductible expenses
You are a foreign individual entrepreneur running a small local business:
•Patent system — if your activity is on the approved list
You want the lowest possible tax burden for 2026–2030:
•New company + simplified VAT regime = 6% of revenue, 0% profit tax, no profit tax reporting, audit moratorium until 2028
•Register now to lock in this regime: company registration →
Register Your Company Under the New Tax Regime
The window between now and 2027 is the most favourable tax environment Uzbekistan has offered for new foreign-owned businesses. Simplified VAT at 6%, zero profit tax, audit moratorium until 2028, and professional accounting costs deductible at 2× from 2027.
UZ2B registers companies in Uzbekistan for foreign entrepreneurs — remotely, from anywhere in the world. We advise on the optimal tax regime for your specific business model before you commit to any structure.
Register your company in Uzbekistan →
Frequently Asked Questions
Can a foreigner use the STS at 1%?
Yes. The STS is available to LLCs with 100% foreign ownership registered in Uzbekistan. UZ2B registers such companies remotely.
What happens when my revenue exceeds the STS threshold?
After June 2026, the threshold is 12,000 BCU (~4.5 billion soums / ~$350,000). When you exceed it, you must transition to the General Tax System within the current tax period. Your accountant should monitor this and prepare for the transition in advance.
Is the simplified VAT regime at 6% available to my company?
Yes, if your company is a small business in trade, services, or food service, is not state-owned, and is not classified as a large taxpayer. It is a voluntary election — you choose whether to apply it.
Can I switch tax regimes after registration?
Yes, with limitations. Transitions between regimes are possible but follow specific procedures and timing requirements. UZ2B advises on the optimal regime at registration and manages transitions as your business grows.
How does UZ2B help with tax compliance?
UZ2B provides full accounting and tax compliance support: monthly bookkeeping, VAT and STS returns, payroll processing, and annual reporting. We also advise on tax regime selection and manage transitions. See our accounting service →
Related Articles
•Uzbekistan Small Business Tax Reform 2026 — Full Breakdown
•How to Register an LLC in Uzbekistan for Foreigners
•Bookkeeping and Accounting in Uzbekistan
•Corporate Services in Uzbekistan
•Opening a Bank Account in Uzbekistan
Author:
Jamshid Musakulov — UZ2B, Business Consulting Agency in Uzbekistan
Last updated: June 2026 — includes changes from presidential decree of 29 May 2026
Reading time: ~18 min │ Updated: June 2026 (includes presidential decree of 29 May 2026)
Uzbekistan is one of the few markets where a foreign entrepreneur can legally pay tax at just 1% of revenue. Over the past five years, the country’s tax system has undergone a sweeping reform — replacing cumbersome Soviet-era mechanisms with transparent, competitive regimes.
But there is a flip side: choosing the wrong tax system from the start can cost you tens of thousands of dollars in unnecessary expenses every year.
This guide covers every active tax regime in Uzbekistan — including the significant changes introduced by presidential decree on 29 May 2026. By the end, you will know exactly which system fits your business — and why.
⚡ JUNE 2026 UPDATE — New Presidential Decree
On 29 May 2026, President Mirziyoyev signed a decree simplifying the tax regime for small businesses, effective 1 June 2026. Five key changes affect foreign-owned companies directly:
•→ STS threshold raised: mandatory transition to the general tax system now triggers at 12,000 BCU (∼4.5 billion soums / ~$350,000) — up from 1 billion soums (~$85,000)
•→ New simplified VAT at 6%: voluntary regime for trade, services and food service — profit tax zeroed out, available until 2030
•→ Automatic VAT refunds: negative VAT balances up to 10 million soums refunded automatically — no application, no audit
•→ Audit moratorium until 2028: tax audits suspended for small businesses with risk below 500 million soums
•→ Double deduction from 2027: accounting and tax consultant fees deductible at 2× the actual amount paid
Full details in the dedicated article: Uzbekistan Small Business Tax Reform 2026
📋 Quick Overview: All Tax Systems
•Simplified Tax System (STS): 1% of revenue — for sole traders and SMEs up to ~$350,000 annual revenue (raised June 2026)
•Simplified VAT Regime (NEW): 6% VAT on turnover + 0% profit tax — voluntary, until 2030, for trade/services/food service
•General Tax System (GTS): 15% corporate tax + 12% VAT — for medium and large businesses, no revenue ceiling
•Patent System: fixed quarterly amount — sole traders only, limited activity list
•SEZ / IT Park: 0–7% or full exemption — for manufacturing, IT and export businesses
1. Simplified Tax System (STS) — The Most Popular Starting Point
The Simplified Tax System is the most widely used regime among small and medium-sized businesses in Uzbekistan. Most foreign entrepreneurs begin here.
Key point: the tax is calculated on revenue (turnover), not profit. Even if your business breaks even or runs at a loss, the tax is still due. This is the essential difference from European corporate income taxes.
Who Can Use the STS?
•Individual entrepreneurs (sole traders) and LLCs
•Annual revenue must not exceed 12,000 BCU ≈ 4.5 billion soums (~$350,000) — ⚡ UPDATED June 2026 (previously: 1 billion soums)
•Maximum of 100 employees
STS Tax Rates
•Sole trader and LLC (trade, services, IT): 1% of gross revenue
•Manufacturing companies: 1% of gross revenue
•Construction: 3% of gross revenue
What the STS Replaces
•VAT (Value Added Tax)
•Corporate income tax
•Corporate property tax
•Urban development and social infrastructure tax
What Remains Under the STS
•Unified Social Payment (USP) — 12% of the payroll fund (paid by employer)
•Personal Income Tax (PIT) on employee salaries — 12%
•Land tax and water use tax (where applicable)
Reporting Under the STS
•Quarterly tax return
•Tax payment — quarterly, by the 20th of the month following the quarter
•Annual return — by 20 January of the following year
✅ STS is the right choice if:
•You are just starting out and revenue is still modest
•Your business is in trade, services, consulting, or IT outsourcing
•You want minimal tax burden and straightforward reporting
•You do not plan to work with large state-owned companies that require VAT invoices
❌ STS is not suitable if:
•Your annual revenue exceeds 4.5 billion UZS (~$350,000)
•Your partners are VAT payers and need input VAT invoices
•You plan to participate in government procurement tenders
1b. Simplified VAT Regime at 6% — ⚡ NEW from 1 June 2026
This regime was introduced by presidential decree on 29 May 2026. It is separate from the standard STS and the general VAT system. Available to eligible small businesses voluntarily until 1 January 2030.
How it works
•VAT rate: 6% of total turnover from goods and services (vs. standard 12%)
•Profit tax: 0% — zeroed out entirely
•Profit tax reporting: eliminated — no obligation to file profit tax returns
•Available to: trade, services, food service companies — not state-owned, not large taxpayers
•Duration: until 1 January 2030
What it does not include
•No VAT input credit — VAT paid on purchases cannot be offset against VAT collected
•Not available to companies with 50%+ state ownership
•Not available to large taxpayers
Practical calculation: if your company earns 500 million soums in revenue and has limited input VAT to reclaim, the simplified regime means: 6% × 500M = 30M soums in tax, zero profit tax. Under the standard GTS with 12% VAT and 15% profit tax the total burden would be significantly higher.
See full breakdown in: Uzbekistan Small Business Tax Reform 2026
2. General Tax System (GTS) — Standard Regime for Growing Businesses
The General Tax System is the default regime for medium and large businesses. It is more complex than the STS, but gives access to a broader range of clients and imposes no revenue ceiling.
Core Taxes Under the GTS
•Corporate income tax: 15% — on net profit (revenue minus expenses), quarterly + annual
•VAT: 12% — on value added, monthly
•Property tax: 1.5% — on average annual value of assets, quarterly
•Land tax: regional rates — on land area, annual
•Unified Social Payment (employer): 12% of payroll fund, monthly
•Personal Income Tax (employees): 12% of salaries, monthly
Corporate Income Tax: A Closer Look
•Revenue: sales proceeds + non-operating income
•Deductible expenses: cost of goods, salaries, rent, depreciation, loan interest, and others
•Losses can be carried forward for up to 5 years
•From 2027 (NEW): accountant and tax consultant fees are deductible at 2× the actual amount paid
VAT Under the GTS: A Closer Look
•Output VAT: 12% charged on your sales invoices
•Input VAT: 12% charged by your suppliers, which you can offset
•Net VAT payable: output VAT minus input VAT
Example: you sell goods worth 100 million UZS. Output VAT = 12 million. You purchased materials for 60 million UZS with 7.2 million input VAT. Net VAT due to the state: 12 – 7.2 = 4.8 million UZS.
VAT Refunds — ⚡ UPDATED June 2026
•Negative VAT balances up to 10 million soums will be refunded automatically — no application required
•From 2027: fully automated VAT refund system for low-risk taxpayers, no human involvement
✅ GTS is the right choice if:
•Your revenue exceeds 4.5 billion UZS or is expected to within the year
•Your clients are VAT payers (state-owned enterprises, large businesses)
•You plan significant deductible expenses that reduce taxable profit
•You participate in government procurement or work with state entities
3. Patent Tax System — Maximum Simplicity for Sole Traders
The patent is a special tax regime for individual entrepreneurs engaged in specific activities. You pay a fixed amount once a quarter — and that is your only tax obligation.
How the Patent Works
•The fixed tax amount is set by local authorities for each type of activity
•The amount depends on the region, activity type, and premises size (where applicable)
•No income reporting required — you do not need to track revenue
•Patents are issued for 1 quarter, 6 months, or 1 year
Activities Covered (Examples)
•Retail trade at markets and small outlets
•Personal services (hairdressers, shoe repair, tailoring)
•Freight and passenger transport (taxis, private drivers)
•Catering (small cafés, teahouses)
•Private tutoring and lessons
•Household and appliance repair
Limitations
•Available only to individual entrepreneurs — not LLCs
•Limited list of eligible activities
•Restrictions on hiring employees beyond set limits
•Not suitable for import/export operations
4. Special Economic Zones (SEZ) and IT Park
Uzbekistan is actively developing special economic zones and technology parks offering foreign investors exceptional tax incentives.
Active SEZs in Uzbekistan (2026)
•Navoi (FIEZ): manufacturing, logistics, trade — 0% corporate tax for up to 30 years
•Angren (AIEZ): manufacturing, processing — 0–7% corporate tax, customs exemptions
•Jizzakh (JIEZ): manufacturing, light industry — full tax exemption for up to 10 years
•IT Park Tashkent: IT, digital services, startups — 0% corporate tax, 0% VAT, 0% USP
•Urta-Saroy: agro-industry, food processing — preferential tax treatment
IT Park: Special Conditions for Technology Businesses
•Corporate income tax: 0%
•VAT: 0%
•Unified Social Payment: 0%
•Import customs duties on equipment: 0%
•Streamlined work permit process for foreign specialists
•Fully remote operation allowed — no physical office in the park required
Requirements to Join IT Park
•Company must be registered in Uzbekistan
•At least 80% of revenue from IT activities (software development, IT services, digital products)
•Export share: at least 20% from April 2026 (rising to 35% by 2027)
•Application submitted to and approved by the IT Park management company — 15 working days
5. Payroll Taxes: PIT and Unified Social Payment
Regardless of which tax system you choose, the moment you hire employees, payroll tax obligations arise.
•Personal Income Tax (PIT): 12% — withheld by employer from gross salary
•Unified Social Payment (USP): 12% — employer pays on top of salary
•Total payroll cost: ~24% of gross salary
Calculation example: you accrue a salary of 5,000,000 UZS. The employee receives 4,400,000 UZS net (after 12% PIT). You additionally pay 600,000 UZS USP. Your total staff cost: 5,600,000 UZS. Compare with Western Europe where total payroll burden is typically 35–50%.
Foreign Employees
•Foreign nationals employed in Uzbekistan are also subject to PIT at 12%
•The employer must obtain a permit to hire foreign labour
•IT Park residents benefit from a simplified procedure for foreign specialists
6. Dividend Tax and Profit Repatriation
One of the most important questions for a foreign investor: how do you take money out of Uzbekistan — and how much tax is due?
•Dividends to residents: 5% withholding tax
•Dividends to non-residents: 10% — may be reduced under DTT
•Interest on loans to non-residents: 10% — may be reduced under DTT
•Royalties to non-residents: 20% — may be reduced under DTT
Double Taxation Treaties (DTT)
Uzbekistan has signed DTTs with more than 50 countries:
•Russia: dividends 5–10%
•Germany: dividends 5–15%
•Austria: dividends 5–15%
•UK: dividends 5–10%
•USA: dividends 5–10%
•China: dividends 10%
•South Korea: dividends 5–10%
•Singapore: dividends 5–10%
To apply a reduced withholding rate, you must present a certificate of tax residence from your home country to the Uzbekistan tax authority before the dividend payment.
7. Tax Administration — ⚡ Major Changes from June 2026
The June 2026 presidential decree introduced the most significant changes to tax administration in recent years. These directly reduce compliance risk for foreign-owned small businesses.
Audit Moratorium until 2028
Until 1 January 2028, tax audits are effectively suspended for most small businesses:
•Tax risk below 500 million soums: no tax audit — self-correction is allowed instead
•Tax risk below 100 million soums: no field inspection (выездная проверка) at all
•Self-correction mechanism: if a tax risk is identified, the business corrects it independently without triggering a formal audit
Automatic VAT Refunds
•VAT balances up to 10 million soums: refunded automatically, no application required
•From 2027: real-time automated VAT refund system for low-risk taxpayers
Double Deduction for Professional Services (from 2027)
•Expenses for accountants and tax consultants: deductible at 2× the actual amount paid
This means outsourcing your accounting to UZ2B becomes effectively subsidised by the tax system — see our accounting service
8. Tax Regime Comparison: Which One Fits Your Business?
You are starting a new company in services, consulting, or trading (revenue under $350K):
•STS at 1% of revenue is the standard starting point
•Consider the new simplified VAT at 6% if you want to handle VAT-registered clients without full GTS complexity
You are a technology company or digital agency:
•IT Park — 0% corporate tax, 0% VAT, 0% USP. The most tax-efficient regime available in Uzbekistan
•UZ2B handles IT Park registration: contact us
Your revenue exceeds $350,000 or you need to issue VAT invoices:
•GTS with standard 12% VAT and 15% profit tax
•VAT input credit available — viable if you have significant deductible expenses
You are a foreign individual entrepreneur running a small local business:
•Patent system — if your activity is on the approved list
You want the lowest possible tax burden for 2026–2030:
•New company + simplified VAT regime = 6% of revenue, 0% profit tax, no profit tax reporting, audit moratorium until 2028
•Register now to lock in this regime: company registration →
Register Your Company Under the New Tax Regime
The window between now and 2027 is the most favourable tax environment Uzbekistan has offered for new foreign-owned businesses. Simplified VAT at 6%, zero profit tax, audit moratorium until 2028, and professional accounting costs deductible at 2× from 2027.
UZ2B registers companies in Uzbekistan for foreign entrepreneurs — remotely, from anywhere in the world. We advise on the optimal tax regime for your specific business model before you commit to any structure.
Register your company in Uzbekistan →
Frequently Asked Questions
Can a foreigner use the STS at 1%?
Yes. The STS is available to LLCs with 100% foreign ownership registered in Uzbekistan. UZ2B registers such companies remotely.
What happens when my revenue exceeds the STS threshold?
After June 2026, the threshold is 12,000 BCU (~4.5 billion soums / ~$350,000). When you exceed it, you must transition to the General Tax System within the current tax period. Your accountant should monitor this and prepare for the transition in advance.
Is the simplified VAT regime at 6% available to my company?
Yes, if your company is a small business in trade, services, or food service, is not state-owned, and is not classified as a large taxpayer. It is a voluntary election — you choose whether to apply it.
Can I switch tax regimes after registration?
Yes, with limitations. Transitions between regimes are possible but follow specific procedures and timing requirements. UZ2B advises on the optimal regime at registration and manages transitions as your business grows.
How does UZ2B help with tax compliance?
UZ2B provides full accounting and tax compliance support: monthly bookkeeping, VAT and STS returns, payroll processing, and annual reporting. We also advise on tax regime selection and manage transitions. See our accounting service →
Related Articles
•Uzbekistan Small Business Tax Reform 2026 — Full Breakdown
•How to Register an LLC in Uzbekistan for Foreigners
•Bookkeeping and Accounting in Uzbekistan
•Corporate Services in Uzbekistan
•Opening a Bank Account in Uzbekistan
Author:
Jamshid Musakulov — UZ2B, Business Consulting Agency in Uzbekistan
Last updated: June 2026 — includes changes from presidential decree of 29 May 2026
