• Individual income tax in a fixed amount. Private entrepreneurs with annual turnover of less than UZS100 million (approximately USD7,817) are entitled to either pay individual income tax on the basis of an annual individual income tax declaration (at the general rate of 12%) or pay individual income tax in a fixed amount, which varies from UZS60,000 to UZS907,500 per month (approximately USD4.69 to USD70.94), depending on the activities of the private entrepreneur and the location of the activities. Self-employed individuals are exempt from individual income tax and pay social tax only.
• Revenue tax. Private entrepreneurs with an annual turnover of over UZS100 million but less than UZS1 billion (approximately USD7,817 to USD78,165) are subject to a revenue tax at the standard rate of 4%. Private entrepreneurs with annual turnover over UZS100 million but less than UZS1 billion (approximately USD7,817 to USD78,165) are entitled to switch to the generally established taxation regime on a voluntary basis.
• Generally established taxation regime. Private entrepreneurs with annual turnover of more than UZS1 billion (approximately USD78,165) are subject to the generally established tax regime (paying corporate income tax, value-added tax and other taxes) applicable to legal entities.
Directors’ fees. Directors’ fees are generally included in gross income and are subject to individual income tax at the general individual income tax rates (see Rates).
Investment income. Dividends and interest income received from Uzbek companies are subject to withholding tax at a rate of 5% for tax resident individuals and 10% for tax nonresident individuals.
Effective from 1 April 2022 to 31 December 2028, the following tax benefits are being introduced for securities holders.
• Both for residents and nonresidents of Uzbekistan, dividend income on shares is exempt from individual income tax (previously, for resident individuals, the dividend income on shares was subject to a 5% tax, while for nonresident individuals, the dividend income on shares was subject to a 10% tax).
• Both for residents and nonresidents of Uzbekistan, accrued interest income on bonds of enterprises is exempt from individual income tax (previously, for resident individuals, the income was subject to a 5% tax, and for nonresident individuals, it was subject to a 10% tax).
Royalties and other investment income are generally taxable at the general individual income tax rates (see Rates). However, interest income of individuals received from certificates of deposits, bank deposits and government securities is exempt from tax.
Taxation of employer-provided stock options. The following items are exempt from individual income tax:
• Funds of employees of enterprises, not exceeding their monthly salary and equivalent payments, directed for acquiring shares in the event of their public offering as part of an employees’ share ownership plan (ESOP) introduced by an enterprise
• Income directed from wages and other income constituting in aggregate up to a hundredfold minimum wage (see Inheritance, estate and gift taxes in Section B) during the tax period, to an
individual account for the purchase of securities issued on the local stock market, provided that they are not returned within 12 months
Capital gains and losses. Capital gains are normally subject to tax at the general individual income tax rates (see Rates). Capital gains derived from the sale of private nonbusiness property are generally exempt from tax. A capital gain derived from the sale of residential premises is exempt from tax if the premises belonged to the individual for more than 36 calendar months preceding the sale. Capital losses are not deductible.
Controlled foreign company rules for individuals. A controlled foreign company (CFC) is a foreign legal entity (not classed as a tax resident of Uzbekistan) or a foreign unincorporated entity whose controlling persons are Uzbek tax-resident individuals.
For a CFC with corporate status, controlling persons are individuals who meet any of the following conditions:
• Their share in the foreign company exceeds 25%
• Their share in the foreign company exceeds 10% if the shares of all other persons recognized as tax residents of Uzbekistan exceed 50% in total
• They exercise control over the foreign company (regardless of their participation share)
For a CFC without corporate status, the controlling person is its founder.
If a tax-resident individual is recognized as a controlling person of a CFC, he or she must include retained earnings of that CFC in his or her annual taxable income and pay the relevant tax.
In addition, Uzbek tax residents must notify the tax authorities of the following:
• Their participation in foreign legal entities and the establishment of foreign unincorporated entities
• CFCs of which they are controlling persons
Deductions. No significant tax deductions are allowed for individuals (except for private entrepreneurs who apply individual income tax on the basis of an annual individual income tax declaration and who are allowed to apply for deduction of business expenses that are confirmed with documents).
Rates. The general Uzbek individual income tax for residents is levied at a flat rate of 12%. For nonresidents, the tax rate is also 12%, except for dividends, interest and freight income. Different rates apply to investment income as described in Investment income above.
Relief for losses. Losses may not be carried forward or back by individuals.
B. Other taxes
Wealth tax and net worth tax. Uzbekistan does not impose a wealth tax or net worth tax.
Property tax. Property tax is imposed on buildings, apartments and other immovable property of individuals. The rates for residential property vary from 0.31% to 0.55% of the cadastral value
Albania India Philippines
Algeria Iran Qatar
Angola
Jordan Samoa
Bahrain Kiribati Kuwait
Bangladesh Korea (North) Saudi Arabia
Bhutan Laos Senegal
Bolivia Lebanon Seychelles
Cambodia Maldives Solomon Islands
Cameroon Marshall Islands South Africa
Cape Verde Mauritius Sri Lanka
China Mainland* Micronesia Suriname
Colombia Morocco Thailand
Côte d’Ivoire Nauru Tonga
Ecuador Nepal Tunisia
Egypt North Macedonia United States
Fiji Oman Uruguay
Gabon Palau Vanuatu
Ghana Paraguay Venezuela
Guyana
Peru Vietnam
* Including the Hong Kong SAR.
In addition, for more convenience in obtaining visas for Uzbekistan, foreign individuals from the list of jurisdictions above can obtain an electronic visa through the E-VISA.UZ system for entry and stay in Uzbekistan for a period of 30 days. The electronic visa is valid for 90 days from the date of its issuance. The time for consideration of applications for registration and issuance of an electronic visa is two working days, excluding the day the application was filed.
The following is the list of jurisdictions whose citizens are subject to the procedure of visa-free transit entry, temporary stay and exit from the Republic of Uzbekistan for a period of no more than five days.
Albania Guyana St. Lucia,
Algeria Honduras St. Vincent
Antigua and India and the Barbuda Jamaica Grenadines
Bahamas Lebanon Saudi Arabia
Barbados Maldives Seychelles
Belize Mauritius South Africa
Bhutan Mexico Sri Lanka
Colombia Morocco Suriname
Costa Rica Nauru Thailand
Dominica North Trinidad and Dominican Macedonia Tobago
Republic Palau Tunisia
Ecuador Panama Turkmenistan
Egypt Peru United States
Fiji Philippines Uruguay
Gabon
St. Kitts Venezuela
Guatemala and Nevis Vietnam
The visa requirements are subject to frequent changes. Consequently, individuals should verify them before planning a trip to Uzbekistan.
Business visa. In general, to obtain a business visa to Uzbekistan, a visa applicant should submit the following documents to the relevant consular office of Uzbekistan abroad:
• Invitation letter from the hosting organization (for example, a business partner or an Uzbek company) that is duly processed through the Consular Legal Department of the Ministry of Foreign Affairs of Uzbekistan in Tashkent (this requirement does not apply to the nationals of those countries for which Uzbekistan has a simplified procedure for issuing visas)
• Two copies of the completed and signed visa application form
• Electronic application from the evisa.mfa.uz website
• Valid passport or document of a stateless person
• Two passport-size pictures
• Proof of visa fee payment unless a visa fee exemption has been established by an intergovernmental agreement between Uzbekistan and the respective foreign country, and/or Uzbekistan legislation
Incomplete visa applications are not accepted. A personal interview with an applicant may be required. Visas are issued within two working days to citizens of those countries for which Uzbekistan has a simplified procedure for issuing visas. For citizens of other countries, the processing of business visa applications may take up to 10 calendar days. There is also a procedure for the processing of business visa applications that takes three calendar days.
Starting from 1 March 2019, for founders (participants) of enterprises with foreign investments and for members of their families, the investment visa is introduced. It is valid for a period of three years, with the possibility of extension without leaving Uzbekistan.
For citizens of foreign jurisdictions, including founders (participants) of enterprises with foreign investments, who made investments in enterprises producing goods and services located in Uzbekistan in the equivalent of at least USD3 million, a residence permit may be issued for 10 years.
Private invitation visa. In general, to obtain a private invitation visa to Uzbekistan, an inviting individual should submit the following documents:
• Original letter of invitation (faxes or copies are not accepted) from the inviting person that has been approved by the local department of the Ministry of Internal Affairs of Uzbekistan
• Visa request application
• Electronic application from the evisa.mfa.uz website
• Copies of valid passports of the invited and the inviting person or of a document of a stateless person
• Copies of documents confirming the relationship (if any) between the invited and the inviting person
• Copies of tickets or reservations for an arrival visa receipt at the Tashkent airport
In addition, to obtain a private invitation visa to Uzbekistan, a visa applicant should submit the following documents:
• Valid passport or document of a stateless person
• Two copies of the completed and signed visa application form
• Two passport-size pictures
Driver’s permits. A foreign citizen of a member country of the Vienna Convention on Road Traffic of 1968 may drive legally in Uzbekistan with his or her home country driver’s license or international driver’s license that meets the technical requirements established for national and international driver’s licenses by the Vienna Convention on Road Traffic of 1968. The above-mentioned valid driver’s licenses are recognized in Uzbekistan until the moment from which Uzbekistan becomes the permanent residence of the holder of the driver’s license. A home country driver’s license and international driver’s license of a foreign citizen that does not meet the technical requirements established for such licenses by the Vienna Convention on Road Traffic of 1968 are subject to replacement with national driver’s licenses of the Republic of Uzbekistan.