- Corporate Income Tax
Corporate income tax is one of the key taxes for legal entities. The corporate income tax rate in 2024 ranges from 0% to 20%, depending on the availability of tax preferences and the types of activities carried out. This tax is calculated based on the profit (revenues minus deductible expenses) earned by the company during the tax period. - Turnover Tax
The turnover tax generally applies to small businesses with income not exceeding 1 billion UZS during the tax period. The turnover tax rate in 2024 ranges from 0% to 4%, depending on the availability of preferences and the types of activities carried out. - Land Tax
Land tax applies to individuals and entities, including non-residents of the Republic of Uzbekistan, who own, possess, use, or lease land plots. Basic tax rates for non-agricultural land are established per hectare and range from 27 million UZS to 271 million UZS, depending on the category and zone. - Property Tax
Property tax is levied on those who own real estate. For legal entities, the property tax rate ranges from 0.5% to 3% of the residual value of the property but not below a fixed amount. The rate depends on the type of property and its location. - Excise Tax
Excise tax is applied to certain types of goods such as alcohol, tobacco products, oil, and petroleum products, mobile communication services, sugar, and other goods. Excise tax rates depend on the type of product or service. For example, in 2024, the excise tax rate on ethyl alcohol upon importation is 70% of the product’s value; on tobacco products and mobile communication services, it is 10%; and on imported sugar, it is 20% of the value. - Value Added Tax (VAT)
VAT applies to those who sell goods (services) or engage in entrepreneurial activities in the Republic of Uzbekistan. This can include both legal entities and individuals from Uzbekistan and foreign countries. Those moving goods across the customs border of Uzbekistan are recognized as VAT payers in accordance with customs legislation. The standard VAT rate in Uzbekistan is 12%. Certain types of goods (services) are subject to VAT at a preferential rate of 0% (e.g., exported goods). - Personal Income Tax (PIT)
Personal income tax is withheld from the total income of individuals, including salaries and other types of income. For individuals, the personal income tax rate ranges from 0% to 12%. The rate depends on the taxpayer’s residency status, the type of income, and the availability of deductions or exemptions. - Social Tax
Employer expenses for employee wages are subject to social tax. The social tax rate ranges from 0% to 25% of wage expenses. The rate depends on the type of company activity. Foreign personnel income paid to a legal entityâa non-resident of Uzbekistanâunder service contracts for providing foreign personnel to work in Uzbekistan is also subject to social tax. Additionally, individuals engaged in entrepreneurial activities must pay social tax.
Other Taxes and Fees:
- Subsoil Use Tax: This tax is levied on companies engaged in the extraction of minerals such as oil, gas, coal, and precious metals. Rates depend on the type and quantity of extracted resources, ranging from 4% to 10% of the value of the extracted resource.
- Customs Duties: Customs duties are levied on goods imported into Uzbekistan. Rates depend on the type and value of imported goods and the country of import. Preferential rates or exemptions may apply to certain categories.
- Licensing and Registration Fees: These fees are charged for issuing licenses for specific types of activities and for registering legal entities and individual entrepreneurs. The amount of licensing and registration fees depends on the type of activity and is regulated by the relevant legal acts.
Additionally:
- Fees for the right to sell alcoholic products
- Fees for entry and transit through the territory of Uzbekistan by foreign vehicles
- Fees for the right to use roads by freight vehicles and trailers with a carrying capacity of over 10 tons
- Environmental pollution and waste disposal fees
- Tourist (hotel) fees
- Recycling fees for wheeled vehicles, self-propelled machines, tires, and rims
- Subscriber number usage fees
- Fees for the registration of issuance and transactions with securities, and others
Conclusion
Uzbekistan’s tax system includes various types of taxes and fees that cover almost all aspects of economic activity. Knowledge and correct application of tax legislation are key factors for successful business management. Companies should consider all types of taxes when planning their financial activities and seek advice from professional tax consultants to minimize tax risks and optimize their tax burden.