Tax laws Uzbekistan
Uzbekistan's taxation system comprises various taxes administered by the Ministry of Finance, which oversees taxation and budgeting in the country.
Key Components of Uzbekistan's Tax System:
Personal Income Tax (PIT):
- Residents: Subject to tax on their worldwide income.
- Non-residents: Taxed on income sourced within Uzbekistan.
Residents:
- Employment income, rental income, capital gains: 12%
- Dividends and interest: 5%
Non-residents:
- Employment income: 20%
- Dividends and interest: 10%
- Other income (e.g., royalties): 20%
Corporate Income Tax (CIT):
Standard Rate: 12%
Turnover Tax: A general rate of 4%, varying between 1% and 25% based on the type of entity and services provided. From January 1, 2025, the 1% turnover tax rate will no longer apply to legal entities located in established tourist zones.
Export Operations: Since November 1, 2022, a 0% CIT rate applies to profits from export operations, irrespective of their share in total operations.
Tax Incentives and Special Tax Regimes:
Free Industrial Economic Zones (FIEZ): Businesses operating in FIEZs may receive tax benefits, including exemptions from certain taxes and customs duties, depending on the amount of direct investment.
Special Tax Regimes: Certain sectors may benefit from reduced tax rates or exemptions. However, breaches of tax legislation can result in penalties, such as fines for concealed income or late submission of tax returns.
International Tax Treaties:
Uzbekistan is a party to over 50 tax treaties, aiming to avoid double taxation and prevent fiscal evasion with respect to taxes on income and capital. These treaties influence withholding tax rates and provide mechanisms for resolving tax disputes.
Recent Developments:
Uzbekistan continues to reform its tax system to enhance investment attractiveness and economic growth. Ongoing initiatives aim to simplify tax procedures, offer incentives for foreign investment, and align with international tax standards.
Conclusion:
Uzbekistan's tax system is multifaceted, offering various incentives to stimulate economic activity, particularly in export and investment sectors. For the most current and personalized advice, consulting official government resources or a tax professional is recommended.
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