TAX CODE OF THE REPUBLIC OF UZBEKISTAN

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Article 6. Application of International Treaties of the Republic of Uzbekistan with Respect to Taxation

The application of international treaties of the Republic of Uzbekistan on taxation and general norms of international tax law must be carried out in the manner prescribed by this Article. The provisions of an international treaty which regulate the avoidance of double taxation and prevention of tax evasion, to which the Republic of Uzbekistan is one of the parties, must apply to tax residents of one or both states that have entered into such an agreement. The provisions of part two of this Article must not apply to a tax resident of the state with which an international treaty of the Republic of Uzbekistan has been concluded, if the tax resident uses the provisions of this international treaty in the interests of another person who is not a tax resident of the state with which this international treaty is concluded. The provisions of parts five through twelve of this Article must apply for the determination of the person who has beneficial ownership of income (BOI) from the source of payment in accordance with the international treaty of the Republic of Uzbekistan. A person who has beneficial ownership of income payable by a legal entity must be a person who has the right to independently use and (or) dispose of these incomes, or a person in whose interests another person is entitled to dispose of such income. In this respect, the right may arise by virtue of direct and (or) indirect participation in this legal entity or control over it, or by virtue of other circumstances. A person who has beneficial ownership of the income of the structure without the formation of a legal entity must be determined in a similar manner. In determining the person who has beneficial ownership of income, account must be taken of the functions performed by the persons specified in part five of this Article, as well as the risks which are assumed by them. A foreign person is not deemed to have beneficial ownership of income from sources in the Republic of Uzbekistan if he possesses limited powers in relation to the disposal of that income, carries out intermediary functions in relation to that income in the interests of another person without performing any other functions and without assuming any risks, directly or indirectly paying the income in question (in whole or in part) to that other person. Where income is paid from sources in the Republic of Uzbekistan to a foreign person who does not have beneficial ownership of that income, and if the source of payment knows the person who has beneficial ownership of that income (part of it), the income paid must be taxed as follows:

1. where the person who has beneficial ownership of paid income (or a part thereof) is deemed to be a tax resident of the Republic of Uzbekistan, paid income (part thereof) must be taxed in accordance with the provisions of this Code in relation to tax residents of the Republic of Uzbekistan. In this respect, the source of payment must not withhold tax on the income which is paid (or a part thereof), provided that notice is given to the tax authority with which the source of payment is registered. The procedure for such notification must be determined by the Cabinet of Ministers of the Republic of Uzbekistan;
2. where the person who has beneficial ownership of paid income (part thereof) is deemed to be a tax resident of the state (territory) with which there is a valid international treaty of the Republic of Uzbekistan on taxation, the provisions of that international treaty must apply to taxation of paid income (part thereof). These rules must apply provided that the place of permanent residence of the person to whom the income is paid and who does not have beneficial ownership of that income is the state (territory) with which there is a valid international treaty of the Republic of Uzbekistan on taxation issues. Where the place of permanent residence of the person to whom income is paid and who does not have beneficial ownership of that income is a state (territory) with which there is no valid international treaty of the Republic of Uzbekistan on taxation issues, the tax must be withheld at the source of payment at the tax rates established by this Code. The tax must be withheld at the source of payment at the same tax rates, if that income is paid to a person who does not have beneficial ownership of it and who does not know the state (territory) of tax residence of the person who has beneficial ownership of that income (or part of it). The competent authority, which is defined in an international treaty on the part of the Republic of Uzbekistan, is entitled to request the competent authority of a foreign state for assistance in ensuring the fulfillment by a taxpayer of a foreign state of a non-fulfilled tax obligation in the Republic of Uzbekistan, in accordance with the provisions of an international treaty of the Republic of Uzbekistan.

Article 16. Taxes and Levies

A tax is a mandatory gratuitous payment established by this Code and payable to the State Budget of the Republic of Uzbekistan or to a state trust fund (hereinafter, the "budget system").

A levy is a mandatory payment to the budget system established by this Code or other laws, the payment of which is one of the conditions for the authorized body or its official to perform legally significant actions in relation to the levy payer, including the granting of certain rights or the issuance of permissive documents.

Fines and other payments imposed on a person by a court, as well as measures of legal enforcement applied in enforcement proceedings, confiscations, and other seizures of property in cases established by law, are not treated as taxes or levies.

Article 17. Types of Taxes and Levies

The following taxes are established in the territory of the Republic of Uzbekistan:

1. value-added tax;
2. excise tax;
3. profit tax;
4. personal income tax;
5. tax for the use of subsoil; 5.1) special rent tax on mineral extraction; (Part one of Article 17 supplemented by subparagraph 5.1 by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021 – National Database of Legislation, December 30, 2021, No. 03/21/741/1219)
6. tax on the use of water resources;
7. property tax;
8. land tax;
9. social tax.

Levies may be established in the territory of the Republic of Uzbekistan. The procedure for introducing levies is determined by laws; the procedure for calculating and paying levies is determined by this Code and other legislative acts.

This Code regulates the procedure for calculating and paying the levy for entry into and transit through the territory of the Republic of Uzbekistan by motor vehicles of foreign states, the levy for the right to travel on motor roads by cargo motor vehicles and trailers with a carrying capacity exceeding 10 tonnes, the levy for the right to sell alcoholic products, the levy for the right to engage in retail sale of beer and beer beverages, and the levy for the right to engage in retail sale of tobacco products.

The procedure for calculating and collecting the state duty is established by legislation on the state duty.

Article 18. Special Tax Regimes

The following special tax regimes are established for certain categories of taxpayers in the territory of the Republic of Uzbekistan:

1. turnover tax;
2. special procedure for taxation of participants in production-sharing agreements;
3. special procedure for taxation of participants in special economic zones and certain categories of taxpayers;
4. special procedure for taxation of certain territories of the Republic of Uzbekistan; (Part one of Article 18 as restated by Law of the Republic of Uzbekistan No. ZRU-714 of September 14, 2021 – National Database of Legislation, September 15, 2021, No. 03/21/714/0874)
5. particularities of taxation of Islamic finance transactions.

The special procedure for taxation of participants in special economic zones and certain categories of taxpayers is established for a specific period depending on the investments made and the fulfillment of other conditions provided for by legislation or investment agreements.

Special tax regimes may provide for exemption from payment of certain taxes, the application of reduced tax rates, and other tax relief.

Article 19. Subjects of Tax Relations and Procedure for Exchange of Documents

Taxpayers, tax agents, and authorized bodies are the subjects of tax relations.

In cases provided for by this Code, the tax authorities send documents to the taxpayer in the form of an electronic document to the taxpayer's personal account. Documents so sent are considered received after they have been read by the taxpayer, but no later than three days from the date of sending.

If the taxpayer does not have a taxpayer's personal account, the documents are sent by registered mail and are considered received five days after they have been sent.

Documents may be handed over to the taxpayer or the taxpayer's representative in person against signature, with the date of receipt of those documents indicated.

In cases provided for by this Code, taxpayers send documents to the tax authorities in a manner analogous to that specified in parts two through four of this Article. In such cases, documents sent through the taxpayer's personal account are considered received by the tax authorities on the day of sending; documents sent by mail are considered received five days after sending.

In electronic documents used in tax relations, confirmation of an electronic document through electronic confirmation methods that express the consent of the person signing the document and allow that person to be identified and authenticated is also equated to an electronic digital signature.

The forms of documents provided for by this Code, the documents necessary to ensure electronic document flow, the procedure for filling out the forms of those documents, and the procedure for sending and receiving such documents on paper or in electronic form via telecommunication channels or through the taxpayer's personal account are approved by the Tax Committee of the Republic of Uzbekistan.

Article 21. Rights of Taxpayers

Taxpayers must have the right: to receive from tax authorities and other authorized bodies (within their powers) without charging the information on effective taxes, amendments in tax legislation, the procedure for the calculation and payment of taxes, forms of tax reporting and applications, as well as explanations with respect to completing them; to receive data on the fulfillment of their tax obligations, available from the tax authorities and other authorized bodies; to use tax relief where the conditions are met and in the manner prescribed by this Code, or to decline such relief; to the timely crediting or refund of amounts of overpaid or overly recovered taxes, penalties and fines; to receive a deferral or installment plan for the payment of taxes in the manner and under the conditions established by this Code; to correct independently errors made by them upon accounting for objects of taxation, calculation and payment of taxes; to be present when the field tax audit and tax audit are performed on their sites in accordance with this Code; to get acquainted with the materials of the field tax audit and tax audit, as well as receive acts of these audits; to present to tax authorities, which carry out tax audits, the explanations on issues related to the implementation of tax legislation; not to comply with the requirements of tax authorities and other authorized bodies and their officials which are at variance with this Code and (or) other acts of tax legislation; to appeal in accordance with the established procedure against non-normative acts and decisions of tax authorities and other authorized bodies, actions (inaction) of their officials; to demand, in the prescribed manner, compensation for losses caused by unlawful decisions of tax authorities and other authorized bodies or unlawful actions (inaction) of their officials; to participate in the process of examination of tax audit materials or other acts of tax authorities in the cases provided for by this Code; to represent their interests on tax relations issues in person or through the organization of tax consultants or other their representatives; to the observance and preservation of tax secrets. Taxpayers may also have other rights established by this Code and other acts of tax legislation. The personal participation of a taxpayer in tax relations must not deprive him of the right to have a representative, just as the participation of a representative must not deprive the taxpayer of the right to participation in person in these relations. The rights of taxpayers must be ensured by the corresponding duties of officials of tax authorities and other authorized bodies. Non-fulfillment or improper fulfillment of obligations to ensure the rights of taxpayers must entail responsibility provided for by the legislation of the Republic of Uzbekistan.

Article 22. Obligations of Taxpayers

Taxpayers are required to:

• timely and in full calculate and pay the established taxes and levies;

• appear at the tax authority upon receipt of a summons to examine documents or provide explanations;

• upon the sale of goods (services), provide the purchaser with invoices, receipts, or other equivalent documents;

• provide officials of tax authorities conducting a tax audit with access to documents serving as the basis for calculating and paying taxes, and to relevant information stored on electronic media;

• comply with the lawful requirements of tax authorities and other authorized bodies, and not interfere with the lawful activities of those bodies and their officials;

• ensure the retention of tax reporting and other documents required for calculating and paying taxes for three years following the calendar year established for payment of the corresponding taxes, unless otherwise provided by this Code;

[The seventh textual paragraph of Part 1 of Article 22 as worded by Law of the Republic of Uzbekistan No. ZRU-891 of December 28, 2023; National Database of Legislation, December 29, 2023, No. 03/23/891/0989; takes effect January 1, 2024.]

• inform the tax authorities at the place of their tax registration of participation in legal entities of the Republic of Uzbekistan and in foreign legal entities where the participation interest exceeds 10 percent of the charter fund (authorized capital).

Legal-entity taxpayers, in addition to the obligations provided by Part 1 of this Article, are required to notify the tax authorities at the place of their registration of all their separate subdivisions and of any changes in previously reported information about those separate subdivisions within one month from the date on which the separate subdivision is established or the information changes.

Persons required by this Code to submit tax reporting in electronic form must ensure receipt from the tax authority, in electronic form via telecommunication channels, of documents used by tax authorities in exercising their powers in relations governed by tax legislation.

Legal entities, and individuals in the aggregate annual income return, are required to reflect in the relevant tax reporting information about funds or property received from foreign states, international and foreign organizations, or citizens of foreign states, or from other persons acting on their instructions, for the following purposes:

• conducting research or surveys on the study of public opinion, except research and surveys conducted for commercial purposes;

• collecting, analyzing, and disseminating information, except where that activity is directed to commercial purposes.

The obligation established by Part 4 of this Article does not apply to:

• state bodies, organizations, and institutions;

• non-state non-commercial organizations;

• foreign diplomatic missions, and missions and consular establishments equivalent thereto;

• specialized institutions of international organizations of which the Republic of Uzbekistan is a member.

Foreign legal entities that own immovable property recognized as a taxable object in accordance with this Code are required, in addition to the obligations provided by this Article, to report to the tax authority at the location of the immovable property information about the participants of that foreign legal entity, in the cases and in the procedure provided by this Code. Foreign structures without formation of a legal entity are required, in the same circumstances, to report information about their founders, beneficiaries, and managers. Where a foreign legal entity (or foreign structure without formation of a legal entity) has multiple objects of property described in this Part, the notice is submitted to the tax authority at the location of one of those objects as chosen by that entity.

Taxpayers who pay taxes in connection with the movement of goods across the customs border of the Republic of Uzbekistan also bear the obligations provided by the customs legislation of the Republic of Uzbekistan.

Taxpayers may also bear other obligations in accordance with the legislation.

Article 41. Dividends and Interest

Dividends are recognized as:

1. any income received by a shareholder (participant) upon the distribution of the profit of a legal entity (including in the form of interest on preferred shares) on shares (holdings) of that legal entity belonging to the shareholder (participant);
2. payments upon the liquidation of a legal entity to a shareholder (participant) in monetary or in-kind form to the extent exceeding the size of that shareholder's (participant's) participation interest in the authorized fund (charter capital) of that legal entity;
3. payment of the actual value of part of a participation interest to an expelled or withdrawing participant, determined from the company's accounting statements for the last reporting period preceding the date of that participant's expulsion or withdrawal, to the extent exceeding the size of that shareholder's (participant's) participation interest in the authorized fund (charter capital) of that legal entity;
4. income of a shareholder (participant) of a legal entity received in the form of the value of additional shares (increase in the nominal value of a participation interest) in the event of an increase in the authorized fund (charter capital) at the expense of the legal entity's own capital (property).

The incomes specified in part one of this Article are recognized as dividends on condition that they are paid in proportion to the participation interests of shareholders (participants) in the authorized fund (charter capital) of the legal entity paying such incomes.

Dividends also include any income received from sources outside the Republic of Uzbekistan that qualifies as dividends in accordance with the legislation of foreign states.

For the purposes of this Code, incomes paid to the owner of a private enterprise, to a participant in a family enterprise, or to the head of a farm, as well as to persons holding Islamic securities (certificates) in banks and microfinance organizations, from the amount of profit remaining at the disposal of such legal entities are equated to dividends.

Interest is recognized as any pre-declared (established) income, including in the form of a discount, received in respect of a debt obligation of any kind (regardless of the method of its formalization), and income received from Islamic finance activities, including from monetary deposits.

Article 46. Sale of Goods and Services

The sale of goods or services is recognized as the transfer of ownership of goods on a consideration basis or the provision of services on a consideration basis, including exchange and the transfer of pledged goods when the debtor fails to fulfill the obligation secured by the pledge.

In cases provided for by this Code, the transfer of ownership of goods or the provision of services on a gratuitous basis is also recognized as sale.

A taxpayer's activity of receiving funds in the form of distribution of fines collected from legal entities and individuals in favor of authorized state bodies is recognized as the provision of services to an authorized state body on a consideration basis.

Article 47. Invoice

When selling goods (services), legal entities, individual entrepreneurs, and self-employed persons must, unless otherwise provided by this Article, issue invoices to the buyers of those goods (services).

An invoice is, as a rule, issued in electronic form in the electronic invoice information system.

When selling goods (services), the rules provided for in parts one and two of this Article do not apply if the seller has issued a cash receipt or other document of the established form to the buyer.

When the value of goods (services) sold changes, including in cases of a price change or clarification of the quantity (volume) of goods delivered or services rendered, the seller must issue an additional or corrected invoice to the buyer in the manner provided for by this Code.

Foreign legal entities subject to registration in accordance with Article 279 of this Code do not issue invoices and do not maintain purchase registers, sales registers, or logs of received and issued invoices in respect of the provision of services specified in Article 282 of this Code.

The form of the invoice and the procedure for filling it out are approved by the Cabinet of Ministers of the Republic of Uzbekistan. (Part six of Article 47 as restated by Law of the Republic of Uzbekistan No. ZRU-758 of March 11, 2022 – National Database of Legislation, March 12, 2022, No. 03/22/758/0207)

Article 49. Securities

Securities are documents certifying property rights or loan relations between the legal entity that issued those documents and their holder, providing for the payment of income in the form of dividends or interest and for the possibility of transferring the rights arising from those documents to other persons.

Securities include stocks, bonds, bills of exchange, certificates of deposit, depositary receipts, options, futures contracts, and forward contracts, as well as Islamic securities (certificates), and other securities recognized as such in accordance with legislation or the applicable legislation of a foreign state.

The procedure for classifying securities as emissive securities is established by legislation or the applicable legislation of the Republic of Uzbekistan and foreign states.

If a transaction in securities meets the criteria for a transaction in financial instruments of forward transactions, the taxpayer is entitled to independently classify it for tax purposes as a transaction in securities or a transaction in financial instruments of forward transactions.

For tax purposes, securities are recognized as circulating on the organized securities market (circulating securities) when the following conditions are simultaneously met:

• they are admitted to circulation by at least one organizer of trading in securities;
• information on their prices (quotations) is published in the mass media or may be provided by the trading organizer or another authorized person to any interested party within three years after the date of transactions in those securities;
• a market quotation was calculated for them at least once within three consecutive months preceding the date of the taxpayer's transaction in those securities (except for the calculation of market quotations during the initial placement of securities by the issuer).

Article 54. Financial Lease and Leasing

For the purposes of this Code, a financial lease is recognized as lease relations arising from the transfer of property (the financial lease object) under an agreement into possession and use for a period exceeding twelve months. A financial lease agreement must meet at least one of the following requirements:

1. upon expiration of the financial lease agreement, the financial lease object passes to the ownership of the lessee;
2. the term of the financial lease agreement exceeds 80 percent of the service life of the financial lease object, or the residual value of the financial lease object at the end of the financial lease agreement is less than 20 percent of its initial value;
3. upon expiration of the financial lease agreement, the lessee has the right to purchase the financial lease object at a fixed price established in the financial lease agreement; 3.1) upon expiration of a financial lease (Islamic lease) agreement concluded with banks and microfinance organizations in accordance with Islamic financial standards within Islamic finance activities, the lessee has the right to accept the financial lease object on the basis of a separate agreement for transfer of ownership and the conditions determined therein;
4. the current discounted value of lease payments for the period of the financial lease agreement exceeds 90 percent of the current value of the object at the time of its transfer to financial lease. The current discounted value is determined in accordance with accounting legislation.

Leasing for the purposes of this Code is recognized as a special type of financial lease in which one party (the lessor), at the instruction of another party (the lessee), acquires from a third party (the seller) ownership of property specified by the leasing agreement (the leasing object) and provides it to the lessee for possession and use for a fee under an agreement meeting the requirements established in part one of this Article.

For the purposes of this Code, the lessee (leasing lessee) who is a party to a financial lease (leasing) agreement is treated as the buyer of the financial lease (leasing) object.

For taxation purposes, financial lease (Islamic lease) agreements concluded with banks and microfinance organizations in accordance with Islamic financial standards within Islamic finance activities are also treated as financial lease and leasing agreements, and the provisions of this Code apply to them.

Article 55. Tax Arrears

For the purposes of this Code, tax arrears are the amount of taxes calculated (accrued) and not paid within the established time limits, including advance and current payments on such taxes, as well as financial sanctions and penalties not paid within the time limit established by this Code.

Records of tax arrears under enforcement documents entered into the unified electronic temporary-storage information base of the Obligations Registry of the Enforcement Bureau under the Prosecutor General's Office of the Republic of Uzbekistan (hereinafter, the Obligations Registry) are maintained separately.

Tax arrears of a taxpayer or tax agent may be determined for all taxes taken together or for each tax separately.

Repayment of tax arrears, including when recovered by the tax authorities, is carried out sequentially in the following order:

1. the amount of taxes;
2. accrued penalties;
3. fines.

Article 56. Taxpayer Personal Account

The taxpayer personal account is an information resource hosted on the official website of the State Tax Committee of the Republic of Uzbekistan.

In the cases provided by this Code, the taxpayer personal account may be used by taxpayers and tax authorities to exercise their rights and obligations in electronic form. Also, in cases provided by law, other interested persons may exchange electronic documents through that information resource.

[Part 2 of Article 56 as worded by Law of the Republic of Uzbekistan No. ZRU-607 of March 10, 2020; National Database of Legislation, March 11, 2020, No. 03/20/607/0279.]

The list of electronic documents sent by tax authorities to taxpayers and by taxpayers to tax authorities is posted on the official website of the State Tax Committee of the Republic of Uzbekistan. The personal account of each taxpayer is established after that taxpayer registers with the tax authorities.

Use of the taxpayer personal account is on a voluntary basis, except for legal entities and individual entrepreneurs. The exchange of information between tax authorities and taxpayers that are legal entities or individual entrepreneurs is conducted exclusively through the taxpayer personal account.

[Part 4 of Article 56 as worded by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; takes effect January 1, 2023.]

One taxpayer personal account is established for an individual regardless of whether that person is an individual entrepreneur.

an individual registered as an individual entrepreneur may use the personal taxpayer account to exercise their rights and obligations as an individual entrepreneur in electronic form.

Access to the taxpayer personal account is obtained through a unified identification system using an electronic digital signature.

An electronic digital signature is provided to a taxpayer by the Center for Public Services on a paid basis, based on the taxpayer's application, in the procedure established by the State Tax Committee of the Republic of Uzbekistan.

From the date the taxpayer personal account is activated and until its operation is suspended, tax authorities send all documents to the taxpayer exclusively through the personal account. The taxpayer sends documents to tax authorities in the same manner.

When a tax authority sends a document to a taxpayer through the taxpayer personal account, a corresponding SMS message is sent to the mobile phone number specified by the taxpayer.

If, when a tax authority sends an electronic document to the taxpayer personal account, the tax authority receives notice that the taxpayer personal account has been suspended or the electronic digital signature key certificate has been terminated, that document is sent to the taxpayer in hard copy within three days from the date of receipt of that notice.

The taxpayer personal account is used by a foreign legal entity registered with the tax authority in accordance with Parts 7 and 13 of Article 129 of this Code to receive documents from the tax authority and to submit to the tax authority documents (information) and data relating to the provision of services in electronic form as specified in Article 282 of this Code.

Access to the taxpayer personal account is provided to foreign legal entities from the date of their registration with the tax authorities in the procedure provided by Part 7 of Article 129 of this Code. Upon deregistration of such a foreign legal entity with the tax authority, access to the taxpayer personal account is maintained for the purpose of receiving documents used by tax authorities in exercising their powers in relations governed by tax legislation.

Article 60. Other Terms Used in This Code

For the purposes of this Code, the following terms are also used:

principal type of activity means the type of activity of a legal entity whose share of net revenue in total sales volume is predominant based on the results of the reporting period;

close relatives of an individual means that person's parents, blood brothers and sisters and stepbrothers and stepsisters, spouse, children including adopted children, grandfathers, grandmothers, and grandchildren, and also the parents of the spouse;

rental (leasing) payment means the amount paid to the lessor (landlord) by the lessee (tenant) on the basis of a concluded lease (leasing) agreement;

interest income of the lessor (landlord) means the difference between the amount of the rental (leasing) payment and the value of the object of financial lease (leasing);

cash-register equipment means cash register machines equipped with fiscal memory, and other devices and software-hardware systems that ensure the recording and storage of fiscal data in fiscal drives, generate fiscal documents and ensure their transmission to tax authorities through the fiscal data operator, and print fiscal documents on paper in accordance with the requirements established by the tax legislation on the use of cash-register equipment;

overpaid amount of tax (penalty, fine) means the positive difference between the amount of tax (penalty, fine) paid and the amount actually due. The overpaid amount of tax (penalty, fine) is determined as of the date of its calculation, taking into account amounts previously credited or refunded to the taxpayer and amounts credited toward future tax payments;

excessively collected tax amount means an overpaid tax amount arising from unlawful actions of the tax authorities;

acknowledged tax arrears means arrears against which the taxpayer has not filed a claim within ten calendar days from the date of receipt of the demand for payment of the tax arrears, or arrears confirmed by a court decision;

erroneously paid amount of tax (penalty, fine) means an amount of tax (penalty, fine) in the payment of which an error was made that does not permit unambiguous identification of the person who paid that amount or the purpose of that payment. Also recognized as an erroneously paid amount is any amount received toward payment of a tax (penalty, fine) in respect of which the person who paid it is not a taxpayer, or received into a budget other than the one into which it was payable;

bad debt means arrears that cannot be repaid due to the termination of the obligation by a court decision, or due to the debtor being declared bankrupt, the debtor's liquidation, the debtor's death, or the expiration of the limitation period, and also arrears that have not been paid within ten years from the date of entry in the Register of Obligations;

Business Entity Sustainability Rating means a rating that provides for the identification and encouragement of business entities conducting their activities in compliance with the requirements of the legislation, in the procedure approved by the Cabinet of Ministers of the Republic of Uzbekistan;

[Article 60 supplemented with the eleventh textual paragraph by Law of the Republic of Uzbekistan No. ZRU-1000 of November 15, 2024; National Database of Legislation, November 16, 2024, No. 03/24/1000/0928.]

Islamic financial activity means activity conducted by banks and microfinance organizations on the basis of Islamic financial standards in the procedure established by the legislation;

Islamic financial transactions means transactions conducted by banks and microfinance organizations on the basis of Islamic financial standards in accordance with the legislation.

Chapter 5. Consolidated Group of Taxpayers

Article 62. Conditions for the Formation of a Consolidated Group of Taxpayers

Legal entities of the Republic of Uzbekistan that satisfy all the conditions provided by this Article have the right to form a consolidated group of taxpayers.

The conditions provided by this Article that the members of a consolidated group of taxpayers must satisfy must be met for the entire term of the agreement on the formation of that group, unless otherwise provided by this Code.

A consolidated group of taxpayers may be formed by legal entities provided that one legal entity directly and (or) indirectly holds a participating interest in the authorized capital (charter fund) of the other legal entities and that participating interest in each such legal entity is not less than 90 percent. This condition must be met for the entire term of the agreement on the formation of the consolidated group of taxpayers.

The participating interest of one legal entity in another legal entity is determined in the manner established by Article 38 of this Code.

A legal entity that is a party to an agreement on the formation of a consolidated group of taxpayers must satisfy all of the following conditions:

it must not be in the process of reorganization or liquidation, unless otherwise provided by this Code;

insolvency proceedings must not have been initiated against it under the legislation of the Republic of Uzbekistan;

[Textual paragraph three of part five of Article 62 as amended by Law of the Republic of Uzbekistan No. ZRU-911 of February 21, 2024; National Database of Legislation, February 22, 2024, No. 03/24/911/0142.]

the net asset value of the person, calculated on the basis of financial statements as of the last reporting date preceding the date of submission of documents to the tax authority for registration of the agreement on the formation (modification) of the consolidated group of taxpayers, must exceed the value of its authorized capital (charter fund).

A new legal entity may be admitted to an existing consolidated group of taxpayers provided that the legal entity being admitted satisfies the conditions provided by part five of this Article as of the date of its admission.

All legal entities that are members of a consolidated group of taxpayers must, in the aggregate, satisfy the following conditions:

1. the aggregate amount of value-added tax, excise tax, profit tax, and subsoil use tax paid by them during a calendar year is not less than one hundred billion soums;

2. the aggregate amount of revenue from the sale of goods and services and other income per financial statements for the calendar year is not less than five hundred billion soums;

3. the aggregate value of assets per financial statements as of the end of the calendar year is not less than one trillion soums;

4. they apply the same tax rate for profit tax.

All indicators provided by part seven of this Article are calculated based on the results of the year preceding the year in which the documents for registration of the agreement on the formation of the consolidated group of taxpayers are submitted to the tax authority.

The following may not be members of a consolidated group of taxpayers:

1. legal entities that are participants in special economic zones;

2. legal entities applying special tax regimes;

3. banks, except where all other legal entities in the consolidated group are banks;

4. insurance organizations, except where all other legal entities in the consolidated group are insurance organizations;

5. professional participants in the securities market that are not banks, except where all other legal entities in the consolidated group are professional participants in the securities market that are not banks;

6. legal entities not recognized as profit tax payers;

7. clearing organizations;

8. microfinance organizations.

A consolidated group of taxpayers may be formed only on the condition that all legal entities satisfying the requirements provided by this Article become members of that consolidated group.

The composition of the members of a consolidated group of taxpayers may change only by admitting members that satisfy those requirements, or as a result of the mandatory exclusion from the group of members that have ceased to satisfy those requirements. A consolidated group of taxpayers that was formed in violation of that requirement or has ceased to comply with it is deemed to have been formed unlawfully or to have ceased to operate as of the date of the violation of that requirement.

A consolidated group of taxpayers is formed for a term of not less than two calendar years.

Article 67. Rights and Obligations of the Responsible Member of the Consolidated Group of Taxpayers

In addition to the rights and obligations provided for in Article 66 of this Code, the responsible member of the consolidated group of taxpayers must exercise the rights and bear the obligations established by this Article. The responsible member of the consolidated group of taxpayers, unless otherwise provided by this Code, must have the rights and bear the obligations laid down in this Code for payers of profit tax in relations, which arise in connection with the operation of the consolidated group of taxpayers. The responsible member of the consolidated group of taxpayers is entitled to:

1. present to tax authorities and their officials any explanations relating to the calculation and payment of profit tax (advance and current payments) for the consolidated group of taxpayers;
2. be present during field tax audits and tax audits which are conducted in connection with the payment of profit tax for a consolidated group of taxpayers, at the location of any member of such a group and its autonomous subdivisions thereof;
3. receive copies of tax audits reports and decisions of the tax authority which are issued on the basis of the tax audits results conducted in connection with the payment of profit tax for a consolidated group of taxpayers. And receive demands for the payment of profit tax (advance payments) and other documents relevant to the operation of the consolidated group of taxpayers;
4. participate in the process of the examination by the director (deputy director) of a tax authority of materials relating to tax audits and additional tax control measures conducted in connection with the payment of profit tax for the consolidated group of taxpayers, in the cases and according to the procedure which are laid down in this Code;
5. receive from the tax authorities information concerning members of the consolidated group of taxpayers, which constitutes tax secrets;
6. lodge appeals, in the prescribed manner, against acts of tax authorities and other authorized bodies, actions (inaction) of their officials, including in the interests of individual members of a consolidated group of taxpayers, in connection with the fulfillment of their obligations (exercise of rights) with respect to the calculation of profit tax for a consolidated group of taxpayers;
7. submit an application to a tax authority for the crediting (refund) of overpaid profit tax for the consolidated group of taxpayers. The responsible member of the consolidated group of taxpayers must be obliged:
8. to submit an agreement on the creation of a consolidated group of taxpayers, an agreement to amend that agreement, a decision or notification concerning the cessation of operation of the consolidated group of taxpayers to the tax authority in the manner and within the time limits which are provided for by this Code for the purpose of their registration;
9. to maintain tax records, calculate and pay profit tax (advance and current payments) for the consolidated group of taxpayers in the manner prescribed by Section XII of this Code;
10. to present to the tax authority a tax report on profit tax for a consolidated group of taxpayers, as well as documents received from other members of the group, in the manner and within the time limit which are established by this Code;
11. in the event of the cessation of operation of the consolidated group of taxpayers, to present to its members such information as is needed for the calculation and payment of profit tax (advance and current payments) and the preparation of tax reports for the relevant reporting and tax periods, in the manner and time limits provided for by the agreement on the creation of a consolidated group of taxpayers. When one or several legal entities withdraw from the consolidated group of taxpayers, such information must be submitted to other members of this consolidated group and legal entities that have withdrawn in a similar manner;
12. to pay arrears arising in connection with the fulfillment of obligations of a taxpayer of profit tax for a consolidated group of taxpayers;
13. to notify the members of the consolidated group of taxpayers of the receipt of a demand for the payment of taxes within five days from the date of receiving that demand;
14. to request from the members of the consolidated group of taxpayers documents, explanations and other information as may be necessary for the tax authorities for the conduct of tax control measures and the fulfillment of the obligations of the payer of profit tax for the consolidated group of taxpayers;
15. to present primary documents, tax ledgers and other information related to the consolidated group of taxpayers, which is requested in the course of tax control measures by the tax authority, which registered the agreement on the creation of this consolidated group. When one or more legal entities withdraw from the consolidated group of taxpayers, the responsible member of this consolidated group must:
16. make the appropriate amendments to tax accounting from the beginning of the tax period for profit tax for the consolidated group of taxpayers in which the legal entities withdrew from the consolidated group;
17. recalculate the advance and current payments for profit tax for the past reporting periods and submit to the tax authority at the place of registration the revised tax reporting on profit tax for the consolidated group of taxpayers. The responsible member of the consolidated group of taxpayers must, within the powers conferred on it, have other rights and bear other obligations of a taxpayer which are provided for in this Code.

Article 68. Termination of a Consolidated Group of Taxpayers

A consolidated group of taxpayers ceases to operate upon the occurrence of at least one of the following circumstances:

1. expiry of the term of the agreement on the formation of the consolidated group of taxpayers;

2. rescission of the agreement on the formation of the consolidated group of taxpayers by agreement of the parties;

3. entry into legal force of a court decision declaring the agreement on the formation of the consolidated group of taxpayers invalid;

4. failure to submit to the tax authority, within the prescribed time limits, an amendment to the agreement on the formation of the consolidated group of taxpayers in connection with a change in the composition of its members;

5. reorganization (other than conversion) or liquidation of the responsible member of the consolidated group of taxpayers;

6. initiation of insolvency proceedings against the responsible member of the consolidated group of taxpayers under the applicable legislation;

[Paragraph 6 of part one of Article 68 as amended by Law of the Republic of Uzbekistan No. ZRU-911 of February 21, 2024; National Database of Legislation, February 22, 2024, No. 03/24/911/0142.]

7. failure of the responsible member of the consolidated group of taxpayers to satisfy the conditions provided by Article 62 of this Code;

8. evasion of the obligation to make mandatory amendments to the agreement on the formation of the consolidated group of taxpayers.

The acquisition or sale of shares (participating interests) in the authorized capital (charter fund) of a legal entity that is a member of a consolidated group of taxpayers, where this does not result in a violation of the conditions provided by part three of Article 62 of this Code, does not bring about the termination of the consolidated group of taxpayers.

Upon the occurrence of the circumstance referred to in paragraph 2 of part one of this Article, the responsible member of the consolidated group of taxpayers is obligated to send to the tax authority that registered the agreement on the formation of the group a decision on the termination of the consolidated group, signed by the authorized representatives of all legal entities that are members of the group. That decision must be sent to the specified tax authority no later than five days from the date of its adoption.

Upon the occurrence of the circumstances referred to in paragraphs 1, 3 through 7 of part one of this Article, the responsible member of the consolidated group of taxpayers is obligated to send to the tax authority that registered the agreement on the formation of the group a notification stating the date on which those circumstances arose. That notification is prepared in free form and is sent to the specified tax authority no later than five days from the date of occurrence of the relevant circumstance.

Within five days from the date of receipt of the documents specified in part three or four of this Article, the tax authority sends information on the termination of the consolidated group of taxpayers to the tax authorities at the locations of the legal entities that are members of the consolidated group of taxpayers.

A consolidated group of taxpayers ceases to operate from the first day of the calendar year following the year in which the circumstances referred to in part one of this Article arose, unless otherwise provided by this Code.

Where the ground provided by paragraph 3 of part one of this Article arises, the consolidated group of taxpayers ceases to operate from the first day of the reporting period for profit tax in which that court decision entered into legal force.

Where the ground provided by paragraph 4 of part one of this Article arises, the consolidated group of taxpayers ceases to operate from the first day of the tax period for profit tax in which the condition established by Article 65 of this Code was violated.

Where a ground provided by paragraph 5, 6, or 7 of part one of this Article arises, the consolidated group of taxpayers ceases to operate from the first day of the calendar year in which the relevant circumstance arose.

Chapter 6. Elements of Taxes

Article 72. Tax Rate

The tax rate is the amount of tax charged per unit of measurement of the tax base, expressed as a percentage or an absolute amount. Tax rates are established by this Code. Excise tax rates may be revised during the year by decisions of the President of the Republic of Uzbekistan, based on price movements and the volume of sales of products, including upon importation.

Article 75. Tax Reliefs

Tax reliefs are advantages provided by tax legislation to particular categories of taxpayers as compared with other taxpayers, including the possibility of not paying a tax or paying it in a reduced amount.

The grant to a taxpayer of a deferral or installment plan for the payment of taxes does not constitute a tax relief.

Tax reliefs are granted by this Code, unless otherwise provided by part five of this Article.

Tax reliefs may not be granted on an individual basis.

Subject to part seven of this Article, tax reliefs for particular taxes, other than value-added tax, profit tax, excise tax on the production and (or) sale of excisable products, subsoil use tax, special rent tax on mineral extraction, and water use tax, may be granted by decisions of the President of the Republic of Uzbekistan only in the form of a reduction of the established tax rate by no more than 50 percent and for a period not exceeding three years.

Profit tax reliefs may be granted by decisions of the President of the Republic of Uzbekistan only in the form of the right to apply accelerated depreciation to depreciable fixed assets, for a period not exceeding three years.

Unless otherwise provided by this Code, taxpayers have the right to use tax reliefs from the time the relevant legal grounds arise and throughout the period in which those grounds remain effective, or to decline to use a tax relief or suspend its use for one or more tax periods, except in respect of the sale of goods or services exempt from value-added tax.

Tax reliefs may be granted subject to the condition that funds released from taxation be used for specified purposes. If such funds are used for purposes other than those specified, the amount so misused is recoverable to the budget, together with late-payment interest charged in the established manner. Funds released as a result of tax reliefs and not used during the effective period of those reliefs may be used for the purposes specified when the reliefs were granted during the year following the end of that period. Funds not used within that time must be transferred to the budget.

Value-added tax reliefs, including reliefs upon the importation of goods into the territory of the Republic of Uzbekistan, may not be granted subject to the condition that funds released from taxation be used for specified purposes.

The Central Bank of the Republic of Uzbekistan, its main departments in the Republic of Karakalpakstan, the regions, and the city of Tashkent, institutions of the Central Bank of the Republic of Uzbekistan, and the Deposit Guarantee Agency are exempt from the taxes provided by this Code, other than social tax and value-added tax payable upon the importation of goods into the territory of the Republic of Uzbekistan.

[Part nine of Article 75 as amended by Law of the Republic of Uzbekistan No. ZRU-1031 of February 18, 2025; National Database of Legislation, February 19, 2025, No. 03/25/1031/0160.]

The Jokargy Kenes of the Republic of Karakalpakstan and the Kengashes of People's Deputies of the regions have the right to establish a reduced tax rate or an exemption from property tax and land tax in respect of land plots occupied by particular sanatorium and resort facilities located in tourist zones.

[Article 75 supplemented with part ten by Law of the Republic of Uzbekistan No. ZRU-659 of December 30, 2020; National Database of Legislation, December 31, 2020, No. 03/20/659/1681; effective January 1, 2021.]

Taxpayers enjoying tax reliefs in the form of a full exemption from legal-entity property tax and legal-entity land tax granted under Article 483 of this Code or by decisions of the President of the Republic of Uzbekistan or the Cabinet of Ministers of the Republic of Uzbekistan must pay those taxes in an amount equal to one percent of the assessed amount of those taxes.

[Article 75 supplemented with part eleven by Law of the Republic of Uzbekistan No. ZRU-767 of May 5, 2022; National Database of Legislation, May 6, 2022, No. 03/22/767/0386; effective August 7, 2022.]

Tax authorities account for tax reliefs using information systems and assign a special identification code to each type of tax relief.

[Article 75 supplemented with part eleven by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021; National Database of Legislation, December 30, 2021, No. 03/21/741/1219.]

Reliefs from legal-entity property tax and legal-entity land tax apply where taxpayers simultaneously satisfy the following conditions during the current tax period, based on the results of the preceding calendar year:

aggregate income from the sale of goods or services exceeds the amount of the legal-entity property tax relief and (or) legal-entity land tax relief used;

each employee is credited monthly with wages equal to at least twice the minimum wage, and the average annual workforce is at least three persons.

For purposes of determining whether the conditions provided by part fourteen of this Article are satisfied, account is taken of:

amended tax reporting submitted by the taxpayer;

turnover from the sale of goods or services during the preceding twelve months, if the deadline for submitting the tax return for the tax period has not yet occurred.

The conditions provided by part fourteen of this Article do not apply to:

legal entities with direct private foreign investment;

parties to production-sharing agreements;

nonprofit organizations and budget-funded organizations;

legal entities whose sole members are public associations of persons with disabilities, in which persons with disabilities constitute at least 50 percent of the total workforce and the payroll of persons with disabilities constitutes at least 50 percent of the total payroll;

legal entities that obtained the status of a special economic zone participant before January 1, 2026.

The provisions of part fourteen of this Article apply, based on the results of the next tax period, to taxpayers newly established during a tax period, including in respect of newly granted tax reliefs, other than reorganized legal entities.

[Classification reference: 1.07.00.00.00 Legislation on Finance and Credit; Banking Activity / 07.14.00.00 Taxpayer Registration; Tax Reporting.]

SECTION II. TAX ACCOUNTING AND TAX REPORTING

Chapter 7. Tax Accounting

Article 76. Tax Accounting and Accounting Documentation

Tax accounting is recognized as the maintenance by a taxpayer or tax agent of accounting documentation in accordance with the requirements of this Code for the purposes of summarizing and systematizing information about taxable objects and (or) objects related to taxation, as well as for calculating taxes and levies and preparing tax reporting.

Accounting documentation consists of primary documents, financial accounting registers, and other documents that serve as the basis for determining taxable objects and objects related to taxation, as well as for calculating taxes and levies.

Unless otherwise established by part four of this Article, tax accounting is based on financial accounting data. The procedure for maintaining financial accounting records and accounting documentation is established by legislation on accounting.

Persons on whom, in accordance with accounting legislation, the obligation to maintain financial accounting records has not been imposed, organize and maintain tax accounting in accordance with this Chapter.

Tax accounting may be subject to requirements for the mandatory use of information systems of the tax authorities in the manner determined by the Cabinet of Ministers of the Republic of Uzbekistan.

Article 77. Tax-Accounting Policy

Tax-accounting policy is determined by the taxpayer independently. Tax-accounting policy is approved in an arbitrary form and must reflect:

1. the forms and procedure for compiling tax registers developed independently by the taxpayer or tax agent, unless otherwise provided by tax legislation;
2. the officials responsible for compliance with it;
3. the procedure for maintaining separate accounting for tax purposes in cases where the obligation to maintain such accounting is provided for by this Code;
4. the methods chosen by the taxpayer for attributing costs to expenses for the purpose of calculating profit tax, as well as attributing value-added tax to the offset;
5. the policy for determining hedged risks, hedged items, and the hedging instruments used in relation to them, the methodology for assessing the degree of hedging effectiveness in the event of hedging transactions, as well as other financial risks;
6. depreciation rates (accrual methods) for each group and subgroup of assets;
7. the procedure for maintaining separate records of income received from Islamic finance activities and from Islamic securities (certificates), in accordance with accounting legislation.

Amendment and/or supplementation of tax-accounting policy is carried out by the taxpayer in one of the following ways:

1. by approval of a new tax-accounting policy or a new section thereof, developed in accordance with accounting legislation;
2. by making amendments and/or additions to the current tax-accounting policy or to a section of the current tax-accounting policy, developed in accordance with accounting legislation.

Accounting methods for tax purposes chosen by the taxpayer when forming the tax-accounting policy are applied from January 1 of the year following the year in which that tax-accounting policy was approved.

A newly established legal entity or a permanent establishment of a foreign legal entity decides on accounting methods for tax purposes during its first reporting period after establishment.

Tax-accounting policy does not change during the calendar year. Alterations to a taxpayer's tax-accounting policy are permitted in the event of amendments to tax legislation or to taxation conditions, and only to the extent caused by those amendments.

Article 78. Maintaining Tax Accounting

Unless otherwise provided by this Code, a taxpayer or tax agent maintains tax accounting in the national currency on an accrual basis.

Enterprises with foreign investments that are taxpayers of the special rent tax on mineral extraction are entitled to maintain tax accounting in US dollars on an accrual basis.

Article 81. Formation and Preparation of Tax Reporting

Tax reporting consists of a taxpayer's documents, including calculations and tax returns for each type of tax and for income paid, as well as annexes to calculations and tax returns, serving as the basis for determining the tax obligations of taxpayers and tax agents.

Tax reporting is prepared in forms approved by the State Tax Committee of the Republic of Uzbekistan in agreement with the Ministry of Finance of the Republic of Uzbekistan.

Tax reporting is submitted to the tax authorities only for those taxes in respect of which a person is recognized as a taxpayer.

Responsibility for the accuracy of the data indicated in tax reporting rests with the taxpayer or tax agent.

Tax reporting in respect of property tax on legal persons, land tax on legal persons, personal income tax, social tax, value-added tax, and turnover tax is generated by the tax authorities in electronic form on the basis of information held in the tax authorities' information system and entered by the taxpayer (tax agent) through the interactive service in the taxpayer's personal account.

Where the data in reporting generated by the tax authorities diverge from the accounting documents of the taxpayer (tax agent), the taxpayer (tax agent) makes corrections to that reporting and submits it within five days, but no later than the deadline for submitting the relevant reporting.

Failure to make corrections to tax reporting generated by the tax authorities within the period specified in the sixth paragraph of this Article is deemed to constitute the taxpayer's (tax agent's) agreement with the reporting as generated by the tax authorities, and that reporting is considered to have been submitted in the form generated by the tax authorities.

The procedure for preparing reporting generated by the tax authorities, making corrections to it, and submitting it is established by the Cabinet of Ministers of the Republic of Uzbekistan.

Article 83. Amendments to Tax Reporting

A taxpayer that discovers, in previously submitted tax reporting, inaccurate or incomplete information and/or errors that have led to an understatement (change) of the calculated amount of tax must make the necessary corrections to that tax reporting and submit amended tax reporting to the tax authority.

Amended tax reporting that results in a reduction of the calculated amount of personal income tax and social tax following the use of tax relief is accepted after the tax authorities have examined the validity of such relief.

Where the circumstances specified in the first paragraph of this Article have not led to an understatement of the calculated tax amount, the taxpayer is entitled to make the necessary corrections to the previously submitted tax reporting and submit amended tax reporting to the tax authority. Amended tax reporting submitted after the expiry of the established time limit for its submission is not considered to have been submitted in violation of the deadline.

If amended tax reporting is submitted to the tax authority before the expiry of the time limit for submitting tax reporting, the tax reporting is considered to have been submitted on the day the amended tax reporting is submitted.

If amended tax reporting is submitted to the tax authority after the expiry of the time limit for paying the tax, the taxpayer is exempt from liability provided that the following conditions are satisfied simultaneously:

1. the amended tax reporting is submitted before the moment when the taxpayer learned that the tax authority had discovered the circumstances that led to the understatement (change) of the calculated tax amount, or before a tax audit was appointed;
2. prior to submitting the amended tax reporting, the taxpayer paid the outstanding amount of tax and the corresponding penalties.

Amended tax reporting is submitted to the tax authority in the manner established for the submission of tax reporting, taking into account the special considerations provided for in this Article.

The rules provided for in this Article also apply to amended tax reporting submitted by tax agents.

Article 84. Retention Period for Tax Reporting

Taxpayers and tax agents must retain tax reporting and the documents attached to it for at least three years following the year in which that reporting was submitted to the tax authorities, unless otherwise provided by this Code.

[Part one of Article 84 as amended by Law of the Republic of Uzbekistan No. ZRU-891 of December 28, 2023; National Database of Legislation, December 29, 2023, No. 03/23/891/0989; effective January 1, 2024.]

If tax legislation makes the application of a tax rate, the amount of tax payable, the application of a tax relief or tax deduction, and (or) a change in the time limit for payment of tax conditional on the taxpayer's compliance with specified conditions, the taxpayer must retain all supporting documents for at least three years following the year in which those conditions cease to apply. Such supporting documents include, in particular, the tax reporting for that tax, the documents attached to it, and documents confirming compliance with those conditions or obligations. The rules of this part apply where those conditions or obligations are temporary and documentary proof of compliance is required.

[Part two of Article 84 as amended by Law of the Republic of Uzbekistan No. ZRU-891 of December 28, 2023; National Database of Legislation, December 29, 2023, No. 03/23/891/0989; effective January 1, 2024.]

SECTION III. PERFORMANCE OF TAX OBLIGATIONS

Chapter 9. General Rules for the Performance of Tax Obligations

Article 88. Limitation Periods for Tax Obligations

The limitation period for a tax obligation is the period during which a tax authority or another authorized body has the right to conduct a tax audit and, based on its results, issue the taxpayer a demand for payment of tax arrears or revise the amount of taxes payable under tax legislation.

Unless otherwise provided by this Code, the limitation period for a tax obligation is three years after the end of the tax period for which the tax obligation is determined. If the occurrence of a tax obligation is linked to a particular event or action, the limitation period for the tax obligation, unless otherwise provided by this Code, is three years from that event or action.

[Part two of Article 88 as amended by Law of the Republic of Uzbekistan No. ZRU-891 of December 28, 2023; National Database of Legislation, December 29, 2023, No. 03/23/891/0989; effective January 1, 2024.]

In the cases provided by part two of Article 84 of this Code, the limitation period is extended by the duration of the conditions on which tax legislation makes the taxpayer's application of a tax rate, the amount of tax payable, a tax relief, a tax deduction, and (or) a change in the time limit for payment of tax conditional.

The running of the limitation period for a tax obligation is suspended, interrupted, and reinstated in accordance with civil legislation.

Chapter 10. Performance of Tax Obligations

Article 91. Performance of a Tax Obligation upon Liquidation of a Legal Entity

The tax obligation of a legal entity being liquidated is performed by the liquidator from the funds of that legal entity, including proceeds from the sale of its property.

If the funds of the legal entity being liquidated, including proceeds from the sale of its property, are insufficient to pay its tax arrears in full, the remaining unpaid arrears may be paid by the members of that legal entity within the limits and in the manner established by legislation.

The order of priority for performance of the tax obligation upon liquidation of a legal entity among settlements with the legal entity's other creditors is determined by civil legislation.

Amounts of taxes, late-payment interest, and fines overpaid by or over-recovered from the legal entity being liquidated are credited by the tax authority against tax arrears in respect of other taxes in the manner established by this Code.

The amount of overpaid or over-recovered taxes, late-payment interest, and fines to be credited is allocated in proportion to tax arrears in respect of other taxes or as directed by the liquidator.

If the legal entity being liquidated has no tax arrears, the amount of overpaid or over-recovered taxes, late-payment interest, and fines must be refunded to that legal entity in the manner established by this Code no later than fifteen days after it submits an application. If the taxpayer does not submit an application, the amount of overpaid or over-recovered taxes, late-payment interest, and fines is written off from the personal account card of the taxpayer that has been removed from the Unified Register of Taxpayers of the Republic of Uzbekistan.

[Part six of Article 91 as amended by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

The provisions of this Article also apply to the payment of taxes in connection with the movement of goods across the customs border of the Republic of Uzbekistan.

Article 96. Recognition of Tax Arrears as Uncollectible

Tax arrears recorded as owed by particular taxpayers and tax agents are recognized as uncollectible where their payment and (or) recovery has proved impossible in any of the following cases:

1. liquidation of a legal entity, to the extent of its tax arrears that were not paid in the manner provided by Article 91 of this Code because the legal entity's property was insufficient and (or) payment by the founders or members of that legal entity was impossible within the limits and in the manner established by legislation;

2. recognition of an individual entrepreneur or individual as bankrupt, to the extent of tax arrears not paid because the debtor's property was insufficient;

[Item 2 of part one of Article 96 as amended by Law of the Republic of Uzbekistan No. ZRU-911 of February 21, 2024; National Database of Legislation, February 22, 2024, No. 03/24/911/0142.]

3. death of an individual or declaration of an individual as deceased, to the extent of that individual's tax arrears that were not paid in the manner provided by Article 94 of this Code because the individual's property was insufficient, including where the estate passes into state ownership;

4. adoption by a court of an act under which the tax authority loses the ability to recover tax arrears because the established recovery period has expired, including issuance by a court of a ruling refusing to reinstate a missed time limit for filing an application to recover tax arrears;

4.1) failure to ascertain the debtor's property or funds for ten years from the date of entry in the Register of Obligations, to the extent of the unpaid tax arrears;

5. deregistration of a foreign legal entity with the tax authority pursuant to part seven of Article 129 of this Code, to the extent of its tax arrears not paid because the permanent establishment's property was insufficient and payment by the legal entity that is a nonresident of the Republic of Uzbekistan was impossible within the limits and in the manner established by legislation. Tax arrears recognized as uncollectible under this item must be reinstated if that foreign legal entity is subsequently registered with the tax authority on the grounds provided by part seven of Article 129 of this Code.

The bodies authorized to decide that tax arrears are uncollectible and to write them off are:

1. the tax authorities at the location of a legal entity or the place of residence of an individual, except in the cases provided by items 2 and 3 of this part, where the circumstances provided by items 1, 2, 3, and 4.1 of part one of this Article exist;

2. the tax authorities at the place of registration of the taxpayer or tax agent, except in the case provided by item 3 of this part, where the circumstances provided by items 4 and 5 of part one of this Article exist;

3. the customs authorities designated by the State Customs Committee of the Republic of Uzbekistan, in respect of taxes, late-payment interest, and fines payable in connection with the movement of goods across the customs border of the Republic of Uzbekistan.

The procedure for writing off tax arrears recognized as uncollectible and the list of documents confirming the circumstances provided by part one of this Article are approved by the State Tax Committee of the Republic of Uzbekistan.

In respect of taxes payable in connection with the movement of goods across the customs border of the Republic of Uzbekistan, the procedure and list of documents are approved by the State Customs Committee of the Republic of Uzbekistan.

Chapter 11. Changes to Time Limits for Payment of Taxes

Article 97. General Conditions for Changing Time Limits for Payment of Taxes

A change in the time limit for payment of a tax means postponement of that time limit to a later date.

A time limit for payment of a tax may be changed in the manner established by this Chapter.

The time limit for payment of a tax may be changed in respect of all or part of the amount of tax payable (in this Chapter, the "amount owed"), with interest charged on the amount owed unless otherwise provided by this Chapter.

A time limit for payment of a tax is changed in the form of a deferral or an installment plan.

A deferral or installment plan for payment of a tax is a change in the time limit for payment of that tax, with the amount owed in respect of that tax being paid, respectively, in a lump sum or in stages.

A deferral or installment plan for payment of a tax may be granted in respect of an amount owed that arose before the decision granting the deferral or installment plan was adopted, or in respect of an amount owed that will arise in the future.

A deferral or installment plan is granted for a period not exceeding one year, unless otherwise provided by Article 99 of this Code.

A person seeking a change in a time limit for payment of a tax (in this Chapter, an "interested person") has the right to apply for a deferral or installment plan or to give notice thereof. Such an application may concern one or more taxes.

[Part eight of Article 97 as amended by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021; National Database of Legislation, December 30, 2021, No. 03/21/741/1219.]

When considering an interested person's application for a deferral or installment plan, the body authorized to decide changes in time limits for payment of taxes has the right to propose other terms for the deferral or installment plan provided by this Chapter, which may be adopted by agreement with the interested person.

A change in the time limit for payment of a tax neither extinguishes an existing obligation to pay the tax nor creates a new one.

A change in the time limit for payment of a tax by decision of a body specified in Article 99 of this Code may be secured by a pledge of property, a surety, or a bank guarantee in accordance with Articles 107 through 109 of this Code, unless otherwise provided by this Chapter.

The provisions of this Chapter also apply when a deferral or installment plan is granted for payment of late-payment interest or a fine.

Payment of all types of current tax payments arising during judicial rehabilitation or external administration in an insolvency case, other than tax on income received under employment agreements or contracts and civil-law agreements and other than social tax, is suspended for the duration of the judicial-rehabilitation or external-administration procedure introduced by a court ruling. In that case, the tax arrears must be paid in equal installments during the six months following the date on which the court approves the report of the rehabilitation administrator or external administrator and issues a ruling terminating the insolvency proceedings.

[Article 97 supplemented with part thirteen by Law of the Republic of Uzbekistan No. ZRU-911 of February 21, 2024; National Database of Legislation, February 22, 2024, No. 03/24/911/0142.]

The provisions of this Chapter do not apply to tax agents or to the cases provided by Article 482 of this Code.

[Part thirteen of Article 97 as amended by Law of the Republic of Uzbekistan No. ZRU-652 of December 1, 2020; National Database of Legislation, December 2, 2020, No. 03/20/652/1581; also applicable to relations arising from March 1, 2020.]

Article 98. Circumstances Precluding a Change in the Time Limit for Payment of a Tax

The time limit for payment of a tax may not be changed if at least one of the following conditions exists in relation to the interested person:

1. criminal proceedings have been instituted on indicia of an offense involving a violation of tax legislation, unless otherwise provided by part two of this Article;

2. there are sufficient grounds to believe that the person will use the change to conceal funds or other taxable property or intends to leave the Republic of Uzbekistan for permanent residence abroad;

3. during the three years preceding the date on which the person applied for a change in the time limit for payment of a tax, a body specified in Article 99 of this Code adopted a decision terminating a previously granted deferral or installment plan because the conditions governing the relevant change in the time limit for payment of the tax had been breached;

4. the person has been declared bankrupt;

[Item 4 of part one of Article 98 as amended by Law of the Republic of Uzbekistan No. ZRU-911 of February 21, 2024; National Database of Legislation, February 22, 2024, No. 03/24/911/0142.]

5. the person provided by item 3.2 of part two of Article 100 of this Code has been assigned to the high-risk category.

[Part one of Article 98 supplemented with item 5 by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021; National Database of Legislation, December 30, 2021, No. 03/21/741/1219.]

The conditions specified in part one of this Article do not apply to the cases provided by part two of Article 99 of this Code.

If any circumstance specified in part one of this Article exists, a decision changing the time limit for payment of a tax may not be adopted, and any decision already adopted must be revoked.

The interested person and the tax authority at the person's place of registration must be notified in writing of the revocation within three days. The interested person has the right to appeal that decision in the manner established by this Code.

The time limit for payment of profit tax in respect of a consolidated group of taxpayers may not be changed.

Article 99. Bodies Authorized to Adopt Decisions on Alteration of the Time Limits for Payment of Taxes

The bodies whose authority includes adopting decisions on alteration of the time limits for payment of taxes (hereinafter in this Article referred to as "authorized bodies") are:

1. for taxes specified in paragraphs 1 to 5 of part one of Article 17 of this Code – the State Tax Committee of the Republic of Uzbekistan (except in the cases provided for in paragraph 3 of this part and part two of this Article). The State Tax Committee of the Republic of Uzbekistan is also entitled to grant taxpayers the opportunity to pay in installments the taxes specified in Article 17 of this Code, as well as the turnover tax, without the provision of a pledge of property, suretyship, or bank guarantee in the manner provided for by this Chapter (except for personal income tax, social tax, profit tax withheld at source, and value-added tax (VAT) when paid as a tax agent);

2. for taxes specified in paragraphs 6 to 8 of part one of Article 17 of this Code, and the turnover tax – local government authorities in the manner established by the Cabinet of Ministers of the Republic of Uzbekistan. With respect to such taxes, a deferral or installment plan may be granted for up to two years;

3. for taxes payable in connection with the movement of goods across the customs border of the Republic of Uzbekistan – customs authorities (except in the cases provided for by part two of this Article) in the manner established by customs legislation.

The Cabinet of Ministers of the Republic of Uzbekistan is entitled to grant a taxpayer a deferral or installment plan for up to three years for any tax specified in Article 17 of this Code. When granting a deferral or installment plan, the Cabinet of Ministers of the Republic of Uzbekistan is entitled to deviate from the restrictions established by part one of Article 98 of this Code.

Article 100. Conditions for Granting a Deferral or Installment Plan for Payment of Taxes

A deferral or installment plan for payment of a tax may be granted to an interested person whose financial position does not permit payment of the tax within the established time limit, provided there are sufficient grounds to believe that the person will become able to pay the tax during the period for which the deferral or installment plan is granted.

A deferral or installment plan for payment of a tax may be granted to an interested person if at least one of the following grounds exists:

1. the person has sustained damage as a result of a natural disaster, technological disaster, or other circumstances of force majeure;

2. financing due to the person from the budget or a state earmarked fund has been delayed, or payment has been delayed for a state order fulfilled, work performed, and (or) services rendered by the person for state needs or the needs of local public authorities;

3. payment of the tax in a lump sum would threaten to give rise to indicia of the interested person's insolvency;

[Item 3 of part two of Article 100 as amended by Law of the Republic of Uzbekistan No. ZRU-911 of February 21, 2024; National Database of Legislation, February 22, 2024, No. 03/24/911/0142.]

3.1) the interested person conducted activities for more than three years and paid assessed taxes on time but, because of its financial position, was unable to pay tax arrears within the established time limits;

[Part two of Article 100 supplemented with item 3.1 by Law of the Republic of Uzbekistan No. ZRU-722 of October 14, 2021; National Database of Legislation, October 15, 2021, No. 03/21/722/0960.]

3.2) the interested person, being a business entity, sent the tax authorities, through the taxpayer's personal account and no later than three months after state registration of its rights to land plots, buildings, and structures, a notice stating the registration number and date of state registration of those rights and asserting the right to defer payment of taxes under part one of Article 101 of this Code;

[Part two of Article 100 supplemented with item 3.2 by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021; National Database of Legislation, December 30, 2021, No. 03/21/741/1219.]

3.3) a person whose aggregate income for the preceding year did not exceed ten billion soums sent the tax authorities, within one month after tax arrears arose, a notice asserting the right to an installment plan for payment of taxes. This procedure applies to value-added tax and profit tax payers, other than legal entities in which the state holds 50 percent or more of the charter fund or authorized capital, subsoil users, and producers of excisable goods;

[Part two of Article 100 supplemented with item 3.3 by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

4. the property position of an individual, disregarding property against which recovery may not be directed under legislation, precludes payment of the tax in a lump sum;

5. the interested person's production and (or) sale of goods or services is seasonal;

6. grounds established by customs legislation exist for granting a deferral or installment plan for taxes payable in connection with the movement of goods across the customs border of the Republic of Uzbekistan;

7. the judicial-rehabilitation or external-administration procedure in an insolvency case provided by part thirteen of Article 97 of this Code has been introduced.

[Part two of Article 100 supplemented with item 7 by Law of the Republic of Uzbekistan No. ZRU-911 of February 21, 2024; National Database of Legislation, February 22, 2024, No. 03/24/911/0142.]

Where any ground specified in items 1 or 3 through 6 of part two of this Article exists, a deferral or installment plan for payment of a tax may be granted:

1. to a legal entity, in an amount not exceeding the value of its net assets;

2. to an individual, in an amount not exceeding the value of that individual's property, other than property against which recovery may not be directed under the legislation of the Republic of Uzbekistan.

By sending a written notice, including through the taxpayer's personal account, to the tax authority at the place of tax registration, legal entities and individual entrepreneurs have the right to pay in equal installments during the six months following the date on which the tax authority's decision adopted after consideration of the audit materials enters into force: amounts of tax and financial sanctions additionally assessed as a result of a tax audit; and amounts of tax additionally assessed as a result of a desk audit. This procedure also applies to payment of financial sanctions assessed as a result of a field tax audit.

If a deferral or installment plan for payment of taxes is granted on a ground specified in item 1 or 2 of part two of this Article, no interest is charged on the amount owed. Interest is also not charged for six months if an installment plan is granted on the ground specified in item 3.3 of part two of this Article and the installment plan is used for tax arrears only once during the calendar year.

[Part five of Article 100 as amended by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

If a deferral or installment plan for payment of a tax is granted on a ground specified in items 3, 3.1, 4, 5, or 6 of part two and (or) part four of this Article, interest is charged on the amount owed at a rate equal to the refinancing rate of the Central Bank of the Republic of Uzbekistan in effect during the deferral or installment period. For a deferral granted on the ground specified in item 3.2 of part two of this Article, interest is charged on the amount owed at a rate equal to 50 percent of the refinancing rate of the Central Bank of the Republic of Uzbekistan in effect during the deferral period. The interested person's deferral period is calculated from the date the notice is sent to the tax authority, and the deferred taxes must be paid in equal installments, together with accrued interest from the expiration date of the deferral, over twelve months beginning with the month following the month in which the deferral period expires.

[Part six of Article 100 as amended by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021; National Database of Legislation, December 30, 2021, No. 03/21/741/1219.]

Article 101. Procedure for Granting a Deferral or Installment Plan for Tax Payment

An application for a deferral or installment plan for payment of tax is submitted by an interested person to the appropriate authorized body. Business entities (except enterprises in which the state holds more than 50 percent, subsoil users, and producers of excisable goods) are entitled to a deferral of the taxes specified in paragraphs 7 and 8 of part one of Article 17 of this Code upon registration of the right to land plots and/or buildings and structures with a total area exceeding one thousand square meters, for a period of six months, on the basis of a submitted notification, with notification, and without pledge security. The official Russian text repeats the reference to notification. The deferred amount of taxes is determined as the amount of taxes calculated on the basis of the value and/or area of the land plots, buildings, and structures that have undergone state registration. (Part one of Article 101 as amended by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021 – National Legislation Database, December 30, 2021, No. 03/21/741/1219)

The following documents are attached to the application of the interested person for a deferral or installment plan:

1. a certificate of the tax authority at the place of registration of that person on the status of that person's settlements in respect of taxes, penalty interest, and fines;
2. a certificate of the tax authority at the place of registration of that person, containing a list of all bank accounts opened for that person;
3. certificates of banks on the monthly turnover of monetary funds for each month of the six months preceding the filing of the application with respect to that person's accounts in banks, as well as on the presence of that person's settlement documents placed in the corresponding card file of unpaid settlement documents, or on their absence from that card file;
4. certificates of banks on the balances of monetary funds in all of that person's bank accounts;
5. an undertaking by that person to comply, during the period of the change in the deadline for payment of tax, with the conditions on which the decision to grant a deferral or installment plan is adopted, as well as that person's proposed schedule for repayment of the debt;
6. documents confirming the existence of grounds for changing the deadline for payment of tax, specified in parts three through eight of this Article.

The following are attached to the application of the interested person for a deferral or installment plan on the grounds specified in paragraph 1 of part two of Article 100 of this Code:

1. a report on the occurrence in relation to that person of circumstances of force majeure that are the basis for filing that application;
2. an act assessing the damage caused to that person as a result of those circumstances.

The documents specified in part three of this Article are prepared by local executive authority bodies, bodies responsible for civil defense and the protection of the population and territories against emergency situations, or citizens' self-governance bodies.

The application of the interested person for a deferral or installment plan for payment of tax on the grounds specified in paragraph 2 of part two of Article 100 of this Code is accompanied by a document of the financial authority confirming the existence of such grounds and the amount that was not received by that person as financing from the budget (state target fund) or as payment for a state order performed by that person and/or services rendered by that person for state needs or the needs of local government bodies.

The existence of the grounds specified in paragraph 3 of part two of Article 100 of this Code is established by the State Tax Committee of the Republic of Uzbekistan or the tax authority authorized by it, on the basis of the results of an analysis of the financial condition of the interested person. Such analysis is conducted in accordance with the methodology approved by the Ministry of Economy and Industry of the Republic of Uzbekistan in agreement with the Ministry of Finance of the Republic of Uzbekistan.

The application of the interested person for a deferral or installment plan for payment of tax on the grounds specified in paragraph 4 of part two of Article 100 of this Code is accompanied by information on the movable and immovable property of the individual (excluding property that, under the legislation, may not be subject to execution).

The application for a deferral or installment plan on the grounds specified in paragraph 5 of part two of Article 100 of this Code is accompanied by a document prepared by that person confirming that the share of that person's income from activities that are seasonal in nature amounts to not less than 50 percent of that person's total income.

The list of sectors and types of activities that are seasonal in nature is approved by the Cabinet of Ministers of the Republic of Uzbekistan.

Where the grounds specified in paragraph 3.1 of part two of Article 100 of this Code exist, the possibility of paying tax in installments is granted in accordance with the application of the interested person. The amount of tax paid in the manner provided for by this part may not exceed fifty percent of the amount of taxes paid over the last three years. (Article 101 supplemented by part ten by Law of the Republic of Uzbekistan No. ZRU-722 of October 14, 2021 – National Legislation Database, October 15, 2021, No. 03/21/722/0960)

In the application for a deferral or installment plan for payment of tax, the interested person undertakes to pay interest accrued on the amount of the debt in accordance with this Chapter.

Upon request of the authorized body, the interested person submits documents on property that may be the subject of a pledge, a surety, or a bank guarantee.

Upon a petition of the interested person, the authorized body may adopt a decision on the temporary suspension of payment of the amount of the debt by the interested person (for the period during which the application is under consideration). The interested person submits a copy of that decision to the tax authority at the place of its registration within five days from the day the decision is adopted.

The decision to grant or to refuse to grant a deferral or installment plan for payment of tax is adopted by the authorized body within thirty days from the day the interested person's application is received.

The decision to grant a deferral or installment plan for payment of tax must contain:

1. an indication of the amount of the debt;
2. the tax in respect of which a deferral or installment plan is granted;
3. the deadlines and procedure for payment of the amount of the debt and interest accrued.

In appropriate cases, the decision to grant a deferral or installment plan for payment of tax must also contain documents relating to property that is the subject of the pledge, a surety, or a bank guarantee.

The decision to grant a deferral or installment plan for payment of tax enters into force from the day specified in that decision. Penalty interest accrued for the entire period from the day established for payment of the tax through the day the decision enters into force is included in the amount of the debt, if that payment deadline precedes the day on which the decision enters into force.

If a deferral or installment plan for payment of tax is granted on security of property, the decision to grant it enters into force only after the conclusion of an agreement on the pledge of property in accordance with the procedure provided for by Article 107 of this Code.

A decision to refuse to grant a deferral or installment plan for payment of tax must be reasoned. If the notification submitted by the taxpayer does not meet the grounds provided for in paragraph 3.2 of part two of Article 100 of this Code, the tax authority, within no later than three days, sends the taxpayer a notification of the absence of grounds for granting a deferral of tax payment. (Part nineteen of Article 101 as amended by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021 – National Legislation Database, December 30, 2021, No. 03/21/741/1219)

A decision to refuse to grant a deferral or installment plan for payment of tax may be appealed by the interested person in the manner established by legislation.

A copy of the decision to grant or to refuse to grant a deferral or installment plan for payment of tax is sent by the authorized body to the interested person and to the tax authority at the place of registration of that person within three days from the day that decision is adopted.

Article 102. Termination of a Deferral or Installment Plan for Payment of Tax

A deferral or installment plan for payment of tax terminates upon expiry of the period of validity of the relevant decision or may be terminated before that period in the cases provided for by this Article.

A deferral or installment plan for payment of tax terminates early upon payment of the entire amount of tax due and the corresponding interest before expiry of the established period.

If the interested person violates the conditions under which the deferral or installment plan was granted, the deferral or installment plan may be terminated early by decision of the authorized body that adopted the decision on the relevant alteration of the time limit for performance of the obligation to pay tax. If land plots, buildings, or structures are sold or leased during the deferral period on grounds provided for in paragraph 3.2 of part two of Article 100 of this Code, the full amount of the granted deferral is collected within one month.

When a deferral or installment plan for payment of tax is terminated early in the case provided for in part three of this Article, the interested person must, within one month after receiving the relevant decision, pay the outstanding amount of the tax debt, as well as late-payment interest for each calendar day beginning from the following day through the day of payment of that amount, inclusive. In this case, the outstanding amount of the tax debt is determined as the difference between the amount of the tax debt specified in the decision to grant the deferral (installment plan), increased by the amount of interest calculated in accordance with the deferral (installment plan) decision for the period during which the deferral (installment plan) was in effect, and the amounts and interest actually paid.

A notice of rescission of the deferral or installment plan decision is sent by the authorized body that adopted it to the interested person in the manner prescribed by this Code within five days from the day the rescission decision is adopted. A copy of that decision is sent to the tax authority at the place of registration of the interested person within the same period.

A decision of an authorized body on the early termination of a deferral or installment plan for payment of tax may be appealed by the interested person in the manner established by legislation.

Interest provided for in this Chapter and payable by the interested person, if not paid on time and after expiry of the period for performance of the demand for its payment, is collected in the manner and within the periods provided for by Chapter 15 of this Code.

Article 103. General Provisions on Crediting and Refunding Overpaid and Excess-Collected Taxes

An amount of tax overpaid by a taxpayer or excess-collected from a taxpayer, where that taxpayer has no tax arrears, is subject to refund to that taxpayer or is credited toward that taxpayer's future payments in respect of the same tax or other taxes.

Where a taxpayer has tax arrears, the amount of the overpaid or excess-collected tax is subject to crediting toward the repayment of those arrears in the following sequence:

1. toward arrears on penalty interest in respect of that tax;
2. toward arrears in respect of other taxes and penalty interest on those taxes;
3. toward payment of fines for tax offenses.

The amount of the overpaid tax may, at the application of the taxpayer, be fully or partially refunded to the taxpayer.

The refund to the taxpayer of an amount subject to refund in accordance with parts one or two of this Article, and taking into account part three of this Article, is effected in the manner established by Articles 104 and 105 of this Code.

Where facts are discovered that indicate a possible overpayment of tax, at the proposal of the tax authority or the taxpayer, a joint reconciliation of settlements in respect of taxes, penalty interest, and fines may be conducted.

The crediting or refund of the amount of the overpaid tax and accrued interest is effected in the national currency.

The rules established by this Chapter also apply to the crediting or refund of amounts of overpaid or excess-collected advance and current payments, levies, penalty interest, and fines, and extend to tax agents and levy payers.

The rules established by this Chapter also apply to the crediting or refund of amounts of overpaid or excess-collected levies, penalty interest, and fines by other authorized bodies.

The rules established by this Chapter also apply to the crediting or refund of the amount of value-added tax subject to reimbursement pursuant to a decision of the tax authority.

The rules established by this Chapter also apply to the crediting or refund of an erroneously paid amount of tax, as well as the corresponding penalty interest and fines.

Article 104. Procedure for Offsetting or Refunding Overpaid Tax

The tax authorities independently offset an amount of tax overpaid by a taxpayer against payment of the taxpayer's tax arrears as provided by part two of Article 103 of this Code.

A decision to offset an amount of overpaid tax against payment of tax arrears is adopted by the tax authority within ten days after the date on which it discovers the overpayment, the date on which the tax authority and taxpayer sign a joint reconciliation report concerning taxes paid by the taxpayer if such a reconciliation was conducted, or the date on which the relevant court decision enters into legal force.

Parts one and two of this Article do not prevent a taxpayer from submitting to the tax authority a written application to offset an amount of tax overpaid by the taxpayer against payment of the taxpayer's tax arrears. If such an application is submitted, the tax authority's decision to offset the amount of overpaid tax against payment of tax arrears is adopted within ten days after receipt of the taxpayer's application or after the tax authority and taxpayer sign a joint reconciliation report concerning taxes paid by the taxpayer if such a reconciliation was conducted.

Subject to Article 103 of this Code, an amount of overpaid tax must be refunded on the taxpayer's written application within fifteen days after the tax authority receives the application, or, in the case of business entities having a high Business Entity Sustainability Rating, other than state enterprises and legal entities in which the state holds 50 percent or more of the charter fund or authorized capital, within three days after receipt, except in respect of value-added tax.

[Part four of Article 104 as amended by Law of the Republic of Uzbekistan No. ZRU-1000 of November 15, 2024; National Database of Legislation, November 16, 2024, No. 03/24/1000/0928.]

An application to offset or refund an amount of overpaid tax may be submitted within three years after the amount was paid, unless otherwise provided by tax legislation.

[Part five of Article 104 as amended by Law of the Republic of Uzbekistan No. ZRU-891 of December 28, 2023; National Database of Legislation, December 29, 2023, No. 03/23/891/0989; effective January 1, 2024.]

A decision to refund an amount of overpaid tax is adopted by the tax authority within ten days after receipt of the taxpayer's relevant application or after the tax authority and taxpayer sign a joint reconciliation report concerning taxes paid by the taxpayer if such a reconciliation was conducted. In the case of business entities having a high Business Entity Sustainability Rating, other than state enterprises and legal entities in which the state holds 50 percent or more of the charter fund or authorized capital, the decision is adopted within two days, except in respect of value-added tax.

[Part six of Article 104 as amended by Law of the Republic of Uzbekistan No. ZRU-1000 of November 15, 2024; National Database of Legislation, November 16, 2024, No. 03/24/1000/0928.]

Before the time limit specified in part eight of this Article expires, the tax authority sends to the Treasury an instruction to refund the amount of overpaid tax, prepared on the basis of the tax authority's decision to refund that amount, so that the taxpayer may be refunded in accordance with budget legislation.

The tax authority must notify the taxpayer of a decision refusing an offset or refund within three days after the decision is adopted. If an amount of overpaid tax is refunded to a taxpayer after the time limit established by part four of this Article, interest is accrued for the taxpayer on the amount not refunded within the established time limit for each calendar day of delay. Accrued interest is paid from the relevant budget. The interest rate is equal to the refinancing rate of the Central Bank of the Republic of Uzbekistan in effect on the days of delay.

Erroneously paid amounts of tax, late-payment interest, and (or) fines are refunded to the taxpayer on the basis of a written request from the taxpayer, bank, or Treasury of the Republic of Uzbekistan if the error was made by that person or body.

Amounts of profit tax overpaid by a consolidated group of taxpayers must be offset or refunded to the responsible member of that consolidated group in the manner established by this Article.

If the agreement on the formation of a consolidated group of taxpayers terminates, amounts of profit tax overpaid by the consolidated group that are not eligible to be offset and (or) have not been offset against the group's existing tax arrears must, on written application, be offset or refunded to the legal entity that was the responsible member of that consolidated group of taxpayers.

Article 105. Procedure for Offsetting or Refunding Over-Recovered Tax

A taxpayer may submit an application to the tax authority to offset or refund an amount of over-recovered tax within three years after the date on which the taxpayer learned that the tax had been over-recovered or the date on which the court decision entered into legal force.

[Part one of Article 105 as amended by Law of the Republic of Uzbekistan No. ZRU-891 of December 28, 2023; National Database of Legislation, December 29, 2023, No. 03/23/891/0989; effective January 1, 2024.]

Subject to Article 103 of this Code, an amount of over-recovered tax, together with interest accrued on that amount, must be refunded on the taxpayer's written application within fifteen days after the tax authority receives the application, or, in the case of business entities having a high Business Entity Sustainability Rating, other than state enterprises and legal entities in which the state holds 50 percent or more of the charter fund or authorized capital, within three days after receipt, except in respect of value-added tax.

[Part two of Article 105 as amended by Law of the Republic of Uzbekistan No. ZRU-1000 of November 15, 2024; National Database of Legislation, November 16, 2024, No. 03/24/1000/0928.]

Interest is accrued on an amount of over-recovered tax provided that the taxpayer applies within thirty days after the date on which the taxpayer learned that the tax had been over-recovered or the date on which the court decision entered into legal force. Interest accrues from the day following the date of recovery through the date of the actual offset or refund. Accrued interest is paid from the relevant budget. The interest rate is equal to the refinancing rate of the Central Bank of the Republic of Uzbekistan in effect on those days.

If it is established that tax was over-recovered, the tax authority adopts a decision to offset and (or) refund the amount of over-recovered tax and the interest accrued on the over-recovered amount in the manner provided by part three of this Article.

An amount of over-recovered tax is offset against the taxpayer's tax arrears or future payments of the same or other taxes, as provided by part one of Article 103 of this Code, in accordance with the procedure established by parts one through five of Article 104 of this Code for offsetting overpaid tax. An offset against future payments of other taxes is made by the tax authorities within three days on the taxpayer's written or electronic application.

The procedure for refunding over-recovered tax is the same as the procedure provided by Article 104 of this Code for refunding overpaid tax.

An amount of individual income tax overpaid or over-withheld, as determined on the basis of a return of aggregate annual income, is refunded to the individual taxpayer on the basis of an application submitted to a tax authority, regardless of the taxpayer's place of tax registration.

[Article 105 supplemented with part seven by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021; National Database of Legislation, December 30, 2021, No. 03/21/741/1219.]

Amounts of profit tax over-recovered from a consolidated group of taxpayers must be offset or refunded to the responsible member of that consolidated group in the manner established by this Article.

If the agreement on the formation of a consolidated group of taxpayers terminates, amounts of profit tax over-recovered from the consolidated group that are not eligible to be offset and (or) have not been offset against the group's existing tax arrears must, on written application, be offset or refunded to the legal entity that was the responsible member of that consolidated group of taxpayers.

Chapter 13. Security for Performance of a Tax Obligation

Article 106. Means of Ensuring the Fulfillment of the Tax Obligation

The fulfilment of obligations to pay taxes may be ensured by a pledge of assets, a surety bond, a bank guarantee, penalties, the suspension of operations on bank accounts and attachment of the taxpayer’s property. The attachment of property as an interim measure for the fulfillment of the taxpayer's tax obligation, upon his application, may be replaced by:

1. a pledge of securities circulating on the organized securities market, or a pledge of other assets, drawn up in the manner prescribed by Article 107 of this Code;
2. surety bond of a third party, drawn up in the manner prescribed by Article 108 of this Code;
3. a bank guarantee, drawn up in the manner prescribed by Article 109 of this Code. Where an effective bank guarantee is issued in the manner prescribed by Article 109 of this Code, the tax authority is not entitled to refuse the taxpayer to replace the interim measures provided for in this paragraph. The means of ensuring the fulfillment of the tax obligation, the procedure and conditions for their application must be established by this Chapter. With respect to taxes payable in connection with the movement of goods across the customs border of the Republic of Uzbekistan, other means to ensure the fulfillment of the tax obligation in the manner and under the conditions established by customs legislation may be applied.

Article 110. Penalty Interest

Penalty interest is a monetary amount that a taxpayer must pay in the event of a violation of the tax payment deadline established by tax legislation.

The amount of applicable penalty interest is paid in addition to the amounts of tax due and regardless of the application of other measures to secure performance of the obligation to pay tax, as well as of measures of liability for violations of tax legislation.

Penalty interest accrues for each calendar day of delay in performance of the obligation to pay tax, beginning from the day following the day established by tax legislation for payment of the tax, unless this Code provides otherwise.

Filing an application for a deferral (installment plan) for payment of tax does not suspend the accrual of penalty interest on the amount of tax subject to payment.

Penalty interest does not accrue on the amount of tax arrears that a taxpayer was unable to repay because, pursuant to a decision of the tax authority, interim measures were adopted in the form of suspension of operations on that taxpayer's bank accounts or attachment of that taxpayer's monetary funds. In that case, penalty interest does not accrue for the entire period during which those circumstances persist.

Penalty interest does not accrue on the amount of tax arrears that arose for a taxpayer as a result of that taxpayer's compliance with written explanations on the procedure for calculation and payment of a tax or on other matters of application of tax legislation, given to that taxpayer or to an indefinite circle of persons by a financial or tax authority (or an authorized official of such an authority) within the limits of its competence.

Penalty interest does not accrue on the amount of tax arrears that arose for a taxpayer as a result of that taxpayer's implementation of a reasoned opinion of a tax authority sent to it in the course of conducting tax monitoring.

Penalty interest does not accrue on tax arrears under enforcement documents entered in the Obligations Registry from the date those enforcement documents are entered in the Obligations Registry.

The circumstances specified in parts six and seven of this Article are established upon the existence of a corresponding document of the relevant authority that, by its meaning and content, relates to the tax (reporting) periods for which the tax arrears arose, regardless of the date of adoption of that document.

The provisions of parts six and seven of this Article do not apply if the written explanations or the reasoned opinion of the tax authority referred to therein are based on incomplete or inaccurate information submitted by the taxpayer.

Penalty interest for each day of delay is determined as a percentage of the unpaid amount of tax.

The percentage rate of penalty interest equals one three-hundredth of the refinancing rate of the Central Bank of the Republic of Uzbekistan in effect at that time.

Penalty interest is paid to the budget (state target fund) to which the corresponding tax is paid.

Penalty interest may be collected on an enforced basis from a taxpayer's monetary funds in bank accounts and from other property of the taxpayer in the manner provided for by Chapter 15 of this Code.

The enforced collection of penalty interest from legal entities and individual entrepreneurs is effected in the manner provided for by Articles 121 through 124 of this Code, and from other individuals – in the manner provided for by Article 125 of this Code.

The enforced collection of penalty interest from legal entities and individual entrepreneurs in the cases provided for by parts seven and eight of Article 120 of this Code is effected through judicial proceedings.

The rules provided for in this Article extend to tax agents.

Article 111. Suspension of Operations on Bank Accounts

A decision to suspend the operations of a taxpayer (tax agent) on its bank accounts may be adopted by the director (deputy director) of the tax authority for a period not exceeding ten days. A decision to suspend the operations of a taxpayer (tax agent) for a period of more than ten days may be adopted by a court on the basis of a petition from a tax authority. In this case, the operations of the taxpayer (tax agent) on its bank accounts must be suspended pending a decision by the court. A decision to suspend the operations of a taxpayer (tax agent) on its bank accounts must be sent by the tax authority to the bank in electronic form. At the same time, the tax authority must send a notification to the taxpayer's personal account about the suspension of the operations on its bank accounts, indicating the reasons. The suspension of the operations on the bank accounts of legal entities and individual entrepreneurs can be applied by the tax authority to ensure the fulfillment of the tax obligations of the specified taxpayers (tax agents) in the following cases:

1. in the event that the taxpayer (tax agent) does not submit financial and (or) tax reports to the tax authority within ten days after the expiry of the established time limit for the submission of such reports;
2. in the event the taxpayer (tax agent) does not submit clarifications and (or) corrections in response to the tax authority's request on the basis of the results of a desk audit, as well as failure to submit documents requested by the tax authority;
3. in the event that the taxpayer (tax agent) obstructs the access of tax authorities officials which has been conducting a tax audit to the specified territories or premises (excluding residential premises). Obstruction of access of a tax authority official must be confirmed by an act signed by him and the person undergoing audit. The tax authority must suspend the operations on bank accounts on the basis of that act;
4. in the event that the taxpayer (tax agent) is absent at the place of its declared address. The suspension of operations on the accounts of a taxpayer (tax agent) must signify the cessation by the bank of all debit operations on those accounts. Where the responsible member of the consolidated group of taxpayers fails to submit tax reports within ten days after the expiry of the established time limit for submitting it, a decision to suspend the operations on bank accounts may be adopted with respect to the operations of the responsible member or all members of this consolidated group by the director (deputy director) of the tax authority. The suspension of the operations on the bank accounts of a taxpayer (tax agent) must not be applied to payments specified in the first priority in accordance with civil legislation, as well as to bank accounts for which recovery is not permitted, in accordance with the legislation.

Article 112. The Procedure for Cancellation of the Decision to Suspend Operations of a Taxpayer (Tax Agent) on its Bank Accounts

The decision to suspend the operations of a taxpayer (tax agent) on its bank accounts must be rescinded by a decision which is adopted on the basis of:

1. paragraph 1 of part three of Article 111 of this Code – not later than one day following the day the taxpayer (tax agent) submits financial and (or) tax reports;
2. paragraph 2 of part three of Article 111 of this Code – on the day of submission of documents, explanations and (or) corrections in response to the request of the tax authority;
3. paragraph 3 of part three of Article 111 of this Code – not later than one day following the day of granting access to tax authorities officials who are conducting a tax audit;
4. paragraph 4 of part three of Article 111 of this Code – no later than one day from the date of acceptance by the tax authority of the validity of the absence of a taxpayer (tax agent) at the declared address. A taxpayer's representative must in person submit the necessary explanations to the tax authority at the place of registration, for such acceptance to happen. The absence of a taxpayer (tax agent) at the place of registration may be accepted justified in case of its registration with another tax authority, or if the information about the change of place of its registration was not known to the tax authority at the previous place of registration, as well as in case of technical errors or other similar circumstances. The absence of a taxpayer (tax agent) at the place of registration of his branch or separate subdivision, or at the location of the asset that is the object of taxation, may be accepted as justified, in particular, if a branch or separate subdivision is undergoing liquidation, or upon the sale of that asset. A decision to rescind the suspension of the operations on the accounts of the taxpayer (tax agent) must be sent to the bank in electronic form no later than the day following the day when such a decision was adopted. The procedure for sending to the bank in electronic form decisions of the tax authority on suspension and cancellation of suspension of transactions on the accounts of the taxpayer (tax agent) is approved by the Cabinet of Ministers of the Republic of Uzbekistan. Where a tax authority fails to comply with the time limit for the cancellation of a decision on the suspension of operations on a taxpayer’s (tax agent) bank accounts or the time limit for the sending to a bank of a such decision, interest payable to the taxpayer must accrue on the amount of monetary resources covered by the suspension for each calendar day by which the time limit is exceeded.

If the tax authority issues an unlawful decision to suspend operations on a taxpayer’s (tax agent’s) bank accounts, interest payable to that taxpayer (tax agent) accrues on the amount of funds subject to the suspension for each calendar day from the day the bank receives the decision to suspend operations through and including the day the bank receives the decision rescinding it. In the cases specified in parts six and seven of this Article, the interest rate must be taken to be equal to the refinancing rate of the Central Bank of the Republic of Uzbekistan which was in effect on days on which operations on a taxpayer’s (tax agent) accounts were unlawfully suspended or the tax authority was not in compliance with the time limit for the cancellation of a decision on the suspension of operations on a taxpayer’s (tax agent) bank accounts or the time limit for the sending to a bank of a decision on the cancellation of the suspension of operations on a taxpayer’s (tax agent) bank account.

Article 119. Compliance with a Demand for Payment of Tax Arrears

If a legal entity, or an individual entrepreneur in respect of business activities, fails to pay tax arrears within sixty calendar days after receiving a demand for payment of the tax arrears, and the tax arrears remain unpaid after application of the measures provided by Articles 120 through 122 of this Code, the tax authorities direct recovery against the taxpayer's property in the manner established by Articles 123 and 124 of this Code.

[Text of Article 119 as amended by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

Chapter 15. Recovery of Tax Arrears

Article 120. General Provisions on the Recovery of Tax Arrears

Where a demand to discharge tax arrears is not fulfilled, or is fulfilled incompletely, within the prescribed period, recovery of those arrears is carried out in the manner provided by this Chapter.

Tax arrears are recovered from the taxpayer that has those tax arrears and, in the cases provided by this Article, from other persons.

Where the taxpayer's obligation to pay taxes is secured by a bank guarantee, a third-party surety, or a pledge of property, and the demand to discharge the tax arrears is not fulfilled or is fulfilled incompletely, the tax authority must recover the outstanding amount, as applicable, from the bank that provided the bank guarantee, from the surety, or from the value of the pledged property.

Recovery of tax arrears from a legal entity or individual entrepreneur is carried out in the manner provided by Articles 121 through 124 of this Code.

Recovery of tax arrears from an individual who is not an individual entrepreneur is carried out in the manner provided by Article 125 of this Code.

Recovery of tax arrears from a legal entity or individual entrepreneur is carried out first from funds held in its bank accounts and, where those funds are insufficient, from other property of that person.

In the cases provided by this Article, the tax arrears of a taxpayer or another person, to the extent that they cannot be recovered from funds in that person's bank accounts, may be recovered from other persons.

Where the taxpayer's proceeds from the sale of goods (services) or other income were credited to the bank accounts of other persons, the tax arrears of the taxpayer may be recovered from those persons.

Where, from the moment the taxpayer learned of the tax audit, the taxpayer transferred its funds or other property to other persons, the tax arrears of the taxpayer may be recovered from those persons.

The provisions of parts eight and nine of this Article also apply in cases where it is established that the transfer of proceeds from the sale of goods (services) or other income, or the transfer of funds or other property to other persons, was effected through a series of transactions.

In the cases specified in parts eight through ten of this Article, recovery of tax arrears from the specified persons is carried out within the limits of the proceeds received by them for goods (services) sold, other income of the taxpayer credited to them, funds transferred to them, and the value of other property transferred to them. The tax authority, on the basis of information available to it concerning the specified persons and depending on the amount of the taxpayer's tax arrears, is entitled to determine independently from which of those persons and in what proportion to carry out recovery of those arrears.

Recovery of tax arrears in the cases provided by parts eight through ten of this Article is carried out through judicial proceedings.

Recovery of tax through judicial proceedings is also carried out in cases where the obligation to pay tax:

1. is based on the tax authority's reclassification of a transaction, or of the taxpayer's status or nature of activity;

2. arose from tax control in connection with transfer pricing with respect to transactions between related persons.

Tax arrears may be recovered by the tax authorities from the taxpayer's debtors. Recovery of tax arrears is directed against the taxpayer's accounts receivable in the manner provided by Article 121.1 of this Code.

The provisions of this Chapter also apply to the recovery of tax arrears on taxes paid in connection with the movement of goods across the customs border of the Republic of Uzbekistan, and to the recovery of tax arrears of tax agents.

Article 121.1. Recovery of Tax Arrears Against a Taxpayer's Accounts Receivable

Legal entities and individual entrepreneurs that have tax arrears are entitled to apply to the tax authority for recovery of their tax arrears from their debtor. The application must be accompanied by a mutually certified or unilaterally signed reconciliation act.

Where a taxpayer applies for recovery of tax arrears from its debtor, the tax authority, within no later than three business days, sends to the debtor's personal account a copy of the unilaterally signed reconciliation act submitted by the taxpayer together with the documents confirming the existence of the accounts payable, and a notification for the debtor to sign or decline to sign the reconciliation act.

The taxpayer's debtor must, within ten business days of receiving the notification, sign (confirm) the mutual-settlements reconciliation act or provide a reasoned refusal explaining the absence of the debt specified in the reconciliation act. Where the taxpayer's debtor fails to submit a refusal in response to the tax authority's notification, or leaves the notification without a response, the accounts receivable are considered to be acknowledged and agreed for the purpose of recovering the taxpayer's tax arrears from the debtor.

Where the amount of debt acknowledged by the taxpayer's debtor differs from the amount specified in the reconciliation act, the debtor must, within ten business days of receiving the notification, submit to the tax authority a reconciliation act indicating the amount acknowledged by it.

A mutual-settlements reconciliation act signed by the taxpayer's debtor or confirmed in the form of an electronic document, regardless of whether the creditor's signature is present or absent, constitutes the basis for directing recovery of the creditor's tax arrears against the debtor. Where the taxpayer's debtor fails to perform the obligation established by part three of this Article, recovery is carried out on the basis of the reconciliation act submitted by the taxpayer.

The tax authority, within no later than three business days, issues a collection order against the bank accounts of the debtors for recovery in an amount not exceeding the taxpayer's tax arrears and the amount of the accounts receivable.

Where the tax authority independently identifies the existence of a taxpayer's accounts receivable on the basis of information available to it or obtained from other sources, or as a result of tax audits, recovery of tax arrears may be directed against the taxpayer's accounts receivable in the manner established by this Article. Notification of this is sent within no later than three business days from the date of identification of the taxpayer's accounts receivable to the taxpayer itself and to the debtor through the taxpayer's personal account.

The taxpayer and its debtor must confirm or provide a reasoned rejection of the tax authority's notification within no later than ten business days from the date of receipt of that notification. Where the notification is left without a response, the accounts receivable (accounts payable) are considered to be acknowledged.

Execution by banks of the collection order submitted by the tax authority in accordance with this Article, enforcement by the tax authority, or withdrawal without execution are carried out in the manner established by Article 121 of this Code.

Where documents are submitted evidencing that the accounts receivable have been discharged to the taxpayer, or on the basis of a court decision, the collection order is withdrawn by the tax authority without execution within no later than three business days.

The mutual-settlements reconciliation act between the taxpayer and its debtor must contain the following information:

• the name of the taxpayer and its debtor, and their identification numbers;
• the name of the tax authority at the place of tax registration of the taxpayer and its debtor;
• the bank account details of the taxpayer and its debtor;
• the amount of the debtor's debt to the taxpayer;
• the signatures of the taxpayer and its debtor, confirmed in the form of an electronic document;
• the date of compilation of the mutual-settlements reconciliation act between the taxpayer and its debtor.

The mutual-settlements reconciliation act between the taxpayer and its debtor is compiled in the form of an electronic document. The Tax Committee of the Republic of Uzbekistan ensures that taxpayers have the ability to submit, confirm (partially confirm), or reject the mutual-settlements reconciliation act in the form of an electronic document.

Recovery of tax arrears is not directed against a taxpayer's accounts receivable if:

• the amount of accounts receivable has been the subject of a reasoned refusal;
• the limitation period has expired;
• a court act concerning the amount of debt to be recovered from the debtor is in the course of enforcement by an enforcement authority, or the period for presenting it for enforcement has expired, or enforcement actions under that court act have been suspended, terminated, or deferred (payment in installments) in the prescribed manner;
• the debtor is not a taxpayer of the Republic of Uzbekistan;
• the debtor is an individual;
• the debtor is in the process of liquidation or insolvency proceedings have been initiated against it;
• the debtor's activity has been terminated or the debtor has been removed from the state register of legal entities.

The tax authority's direction of recovery against accounts receivable does not release the taxpayer from the obligation to pay taxes until the tax arrears are discharged.

Article 127. Taxpayer Identification Number

Upon registration, each taxpayer is assigned a taxpayer identification number that is uniform throughout the territory of the Republic of Uzbekistan, and the taxpayer's registration details are entered in the Unified Register of Taxpayers of the Republic of Uzbekistan.

Subdivisions of trade unions and primary trade-union organizations that do not have legal-entity status and are registered with the justice authorities are assigned a taxpayer identification number at their discretion.

[Article 127 supplemented with part two by Law of the Republic of Uzbekistan No. ZRU-942 of August 13, 2024; National Database of Legislation, August 14, 2024, No. 03/24/942/0612.]

The personal identification number of an individual specified in part four of Article 126 of this Code is deemed to be that individual's taxpayer identification number.

[Article 127 supplemented with part two by Law of the Republic of Uzbekistan No. ZRU-759 of March 14, 2022; National Database of Legislation, March 14, 2022, No. 03/22/759/0213.]

The Cabinet of Ministers of the Republic of Uzbekistan determines the procedure and conditions for assigning, using, and changing a taxpayer identification number.

The tax authority states the taxpayer identification number in every document it sends to the taxpayer.

Each taxpayer states its taxpayer identification number in tax reporting, applications, and other documents submitted to the tax authority, and in other cases provided by legislation, unless otherwise provided by this Article.

The taxpayer identification number must be stated in:

licenses to engage in particular types of activity;

commercial, civil-law, and employment agreements entered into by legal entities and (or) individuals;

documents determining or confirming transactions by legal entities and (or) individual entrepreneurs, including invoices and shipping documents;

monetary, settlement, and payment documents;

other documents in cases established by legislation.

Article 128. Registration of Taxpayers

Legal entities are subject to registration with the tax authorities at their location and at the location of their separate subdivisions.

Legal entities that include separate subdivisions located on the territory of the Republic of Uzbekistan are subject to registration with the tax authorities at the location of each separate subdivision.

Legal entities that are nonresidents and that carry out transactions on commodity and raw-materials exchanges, crypto exchanges, and/or purchases (sales) of shares of joint-stock companies at organized auctions in the Republic of Uzbekistan are subject to registration with the tax authority at the place of exchange trading.

The State Tax Committee of the Republic of Uzbekistan and the Ministry of Finance of the Republic of Uzbekistan are entitled to establish special features of registration with the tax authorities for major taxpayers.

Foreign legal entities that carry out activities in the Republic of Uzbekistan through a representative office or permanent establishment are subject to registration with the tax authorities at the place of business.

Individuals are subject to registration with the tax authorities at their place of residence.

Legal entities and individuals are also subject to registration with the tax authorities at the location of immovable property belonging to them, as well as on other grounds provided by this Code.

The procedure for registration with the tax authorities on the grounds provided by this Article is established by Articles 129 and 130 of this Code.

Article 131. Registration of Taxpayers by Taxable Object

Registration of a taxpayer is carried out by the tax authorities at the location of the taxable object.

Registration of a taxpayer at the location of the taxable object is carried out after registration in the manner established by Article 129 of this Code, in the event that, in accordance with this Code, the taxpayer has incurred an obligation to pay land tax, property tax, tax on the use of water resources, and (or) subsoil use tax on non-metallic minerals not at the place of registration as a taxpayer.

A taxpayer who has incurred an obligation to pay land tax, property tax, or tax on the use of water resources not at the place of registration must, within ten days from the date on which that obligation arises, apply to the tax authorities for registration of taxable objects at their location in the manner established by legislation, except where the provision of such information to the tax authorities is the obligation of bodies, institutions, and organizations in accordance with parts three and five of Article 133 of this Code.

The obligation specified in part three of this Article does not apply to individuals who are taxpayers of property tax and land tax at the location of taxable objects, registration of whom is carried out by the tax authorities independently.

The obligation established in part one of this Article also applies to:

• a taxpayer of excise tax paid when gasoline, diesel fuel, and gas are sold to end consumers;
• a tax agent that has created stationary workplaces at the location of a territorially separate subdivision with more than twenty-five employees.

The taxpayer referred to in the second paragraph of part five of this Article must, within ten days from the date of sale of excisable products, apply to the tax authority at the location of the filling station for registration as a taxpayer of excise tax.

The tax agent specified in the third paragraph of part five of this Article must, within ten days after expiry of one month from the date of creation of the separate subdivision, apply to the tax authority at the location of the separate subdivision for registration as a tax agent paying personal income tax.

The tax authority registers a taxpayer at the location of the taxable object no later than three working days from the date of the taxpayer's application, in accordance with the previously issued taxpayer identification number.

Article 132. Registration Data on a Taxpayer

For the purposes of this Code, registration data on a taxpayer means information submitted by the taxpayer to the tax authorities, as well as information sent by bodies, institutions, and organizations in the manner provided for by Article 133 of this Code.

Registration data on a legal entity includes, in particular:

1. taxpayer identification number;

2. full and abbreviated name;

3. location (postal address);

4. organizational and legal form;

5. date, place, and number of state registration;

6. size of the authorized fund (charter capital) – for commercial organizations;

7. data on separate subdivisions;

8. the full list of participants, with indication of the taxpayer identification number of participants who are residents of the Republic of Uzbekistan, the country of registration of the foreign participant, and the share of each participant in the authorized fund (charter capital) – for commercial organizations.

Registration data on individuals includes their personal data:

1. surname, given name, and patronymic;

2. citizenship;

3. personal identification number of the individual;

4. series and number of the passport or identification ID card, and the date and place of its issuance;

5. place of residence (address).

For individual entrepreneurs, in addition to the information specified in part three of this Article, registration data also includes:

1. date, place, and number of state registration;

2. type of activity;

3. place of business activity.

A taxpayer must, upon request of the tax authority, confirm their registration data held in the tax authority database through the taxpayer's personal account.

The procedure for maintaining registration data on taxpayers, their confirmation by taxpayers, the provision of such data to third parties, and the particular features of forming the composition of data for certain categories of taxpayers are established by the State Tax Committee of the Republic of Uzbekistan in agreement with the Ministry of Finance of the Republic of Uzbekistan.

Article 133. Obligations of Bodies, Institutions, and Organizations to Provide Information to Tax Authorities

Bodies responsible for state registration of legal entities and individuals that are business entities must transmit to the tax authority at the person's place of registration, no later than ten days after state registration of those persons, an extract from the relevant state register of legal entities, information concerning the head or person performing the head's functions, the individual's personal identification number, and the individual's passport details or identification-card details. Those bodies must also report to the tax authority any changes entered in the state register concerning the relevant persons no later than three days after the changes are entered.

[Part one of Article 133 as amended by Law of the Republic of Uzbekistan No. ZRU-759 of March 14, 2022; National Database of Legislation, March 14, 2022, No. 03/22/759/0213.]

Internal affairs bodies must report monthly to the tax authorities at their location the issuance of identification cards, including cards issued to replace lost or expired passports or identification cards, and canceled passports or identification cards. They must also report within three days to the tax authorities at their location any identified absence of a residential lease or tenancy agreement or agreement granting the gratuitous use of residential premises, and any failure to comply with the mandatory registration of a lease or tenancy agreement with the tax authorities.

[Part two of Article 133 as amended by Law of the Republic of Uzbekistan No. ZRU-759 of March 14, 2022; National Database of Legislation, March 14, 2022, No. 03/22/759/0213.]

Bodies responsible for state registration of rights to immovable property must provide the state tax service bodies, electronically and in real time, with information concerning land plots and other immovable property located in the relevant territory and their owners or holders.

[Part three of Article 133 as amended by Law of the Republic of Uzbekistan No. ZRU-714 of September 14, 2021; National Database of Legislation, September 15, 2021, No. 03/21/714/0874.]

Bodies responsible for registering natural-resource users and (or) recording them in registers, and for licensing activities involving the use of natural resources, must report to the tax authorities at the place of natural-resource use, within ten days after the relevant registration of the natural-resource user or issuance of a license or permit, the grant of rights of use that constitute an object of taxation.

Bodies responsible for water-resource accounting must provide the tax authorities at the place of water use or consumption, electronically and in real time, with information concerning persons using water and the volumes of water they use.

[Part five of Article 133 as amended by Law of the Republic of Uzbekistan No. ZRU-714 of September 14, 2021; National Database of Legislation, September 15, 2021, No. 03/21/714/0874.]

Authorized bodies in the field of licensing, permitting, and notification procedures must provide the tax authorities at the location of persons that have undergone those procedures, electronically and in real time, with information concerning licenses and permits issued, extended, suspended, resumed, terminated, annulled, reissued, or revoked, and concerning notifications submitted to authorized bodies by individuals and legal entities.

[Part six of Article 133 as amended by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

Bodies and organizations responsible for accrediting representative offices of foreign legal entities must report information concerning the accreditation or withdrawal of accreditation of those representative offices to the tax authorities at the location of the representative office within ten days after the relevant event.

The body authorized to maintain the register of representative offices of international organizations and foreign nonprofit nongovernmental organizations must report to the tax authorities at the location of a representative office information concerning the relevant entry in or amendment to that register within ten days after accreditation, withdrawal of accreditation, or entry or amendment of the information in the register.

Guardianship and trusteeship bodies must report to the tax authorities at their location the establishment of guardianship, trusteeship, or property administration in respect of individuals who own or hold property, including the placement of a child who owns or holds property with a foster family, and any subsequent changes relating to that guardianship, trusteeship, or property administration, within ten days after the relevant decision is adopted.

Bodies or institutions authorized to perform notarial acts must report to the tax authorities, in real time using information and communication technologies, the notarization of contracts for the sale and purchase of immovable property, property lease agreements and the amount of rent, the issuance of certificates of inheritance rights, and the notarization of gift agreements. Information provided concerning a notarized gift agreement must state the degree of kinship between the donor and donee.

[Part ten of Article 133 as amended by Law of the Republic of Uzbekistan No. ZRU-714 of September 14, 2021; National Database of Legislation, September 15, 2021, No. 03/21/714/0874.]

Bodies issuing work permits or patents to foreign citizens or stateless persons must report information concerning the migration registration at the place of stay of foreign citizens or stateless persons. That information is provided in respect of foreign citizens and stateless persons that are not registered with the tax authorities and whose documents for a work permit or patent have been accepted for consideration. The bodies must report that information to the tax authorities at their location no later than the day following acceptance of those documents.

The Central Securities Depository must provide the State Tax Committee of the Republic of Uzbekistan, monthly and no later than the tenth day of the month following the reporting month, with information concerning share transactions registered by the Depository and investment intermediaries.

The customs authorities must provide the tax authorities with:

real-time information concerning import operations; information concerning export operations after goods cross the customs border, including goods sold to foreign states on domestic and foreign electronic marketplaces or electronic trading platforms; and information concerning movements of goods, including movements effected through electronic commerce, across the customs border of the Republic of Uzbekistan;

monthly information concerning instances in which nonresidents of the Republic of Uzbekistan store goods in customs warehouses of the Republic of Uzbekistan.

[Part thirteen of Article 133 as amended by Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067; effective January 1, 2025.]

The Ministry of Agriculture of the Republic of Uzbekistan must provide, electronically through an information system, standard process-sheet data for the cultivation of agricultural crops and the production of agricultural products.

The body responsible for the domain-name system of the national segment of the global information network Internet provides the tax authorities with access to information concerning domain-name administrators by providing software tools for connection to the relevant database.

The State Tax Committee of the Republic of Uzbekistan approves the forms for information provided on paper or electronically under this Article and the procedure for completing those forms.

The procedure for providing information to tax authorities electronically is determined by agreement between the parties exchanging the information.

Information specified in this Article is provided to the tax authorities free of charge.

The bodies, institutions, and organizations specified in this Article, and officials authorized to perform notarial acts, must also provide the information specified in this Article to the tax authorities upon request within five days after receiving the request.

An obligation of institutions and organizations to provide information to the tax authorities is established by legislation.

[Article 133 supplemented with part nineteen by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

Article 137. Types of Tax Audits

Tax audits are conducted to monitor compliance with tax legislation by taxpayers, payers of levies, and tax agents.

A tax audit is carried out on the basis of examination and analysis of taxpayer data held by the tax authorities.

Tax authorities conduct the following types of tax audit:

1. desk audit;

2. field tax audit;

3. tax audit;

4. audit of transfer price formation.

No tax audits are conducted in respect of business entities in category "AAA" of the high Business Entity Sustainability Rating, other than state enterprises and legal entities in which the state holds 50 percent or more of the charter fund or authorized capital, except for audits conducted in connection with criminal proceedings.

[Article 137 supplemented with part four by Law of the Republic of Uzbekistan No. ZRU-1000 of November 15, 2024; National Database of Legislation, November 16, 2024, No. 03/24/1000/0928.]

Article 138. Desk Audit

A desk audit is conducted by a tax authority on the basis of an analysis of tax reporting and financial reporting submitted by the taxpayer or tax agent, and other documents and information concerning that person's activities held by the tax authority.

During a desk audit, the following tax-control measures are prohibited, except where the desk audit is conducted for purposes of reimbursement or refund of value-added tax:

1. entering the taxpayer's territory;

2. inspecting the taxpayer's territory or premises;

3. demanding documents from the taxpayer or summoning the taxpayer;

4. seizing the taxpayer's documents or items.

[Article 138 supplemented with part two by Law of the Republic of Uzbekistan No. ZRU-891 of December 28, 2023; National Database of Legislation, December 29, 2023, No. 03/23/891/0989; effective January 1, 2024.]

Before beginning a desk audit, the tax authorities may conduct a pre-audit analysis. A pre-audit analysis is not conducted for a tax period for which a tax audit has been or is being conducted.

A pre-audit analysis is an automated analysis, conducted by the tax authorities using information systems and without the taxpayer's participation, of submitted tax reporting and other information concerning the taxpayer's activities.

A pre-audit analysis is conducted without an order from the head or deputy head of the tax authority.

If, during a pre-audit analysis, the tax authority identifies discrepancies and (or) errors between submitted tax reporting and information held by the tax authority, a notice requiring the relevant corrections to the tax reporting is sent to the taxpayer through the taxpayer's personal account.

Within ten days after receiving the notice requiring the relevant corrections, the taxpayer must submit amended tax reporting or a substantiation of the identified discrepancies. Failure to comply with that obligation constitutes grounds for the tax authority to order a desk audit of the taxpayer.

A pre-audit analysis is deemed completed on the date the taxpayer submits amended tax reporting or a substantiation of the identified discrepancies, or on the date a desk audit is ordered.

[Article 138 supplemented with parts two through seven by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021; National Database of Legislation, December 30, 2021, No. 03/21/741/1219.]

A desk audit is conducted on the basis of an order from the head or deputy head of the tax authority. The order states the taxpayer's name and identification number; the surname, given name, patronymic, and position of each person conducting the audit; the audit period; the period under audit; and the types of taxes and levies under audit.

A desk audit may cover tax periods for which the limitation period established by Article 88 of this Code has not expired. A repeated desk audit may not be conducted for the same tax or reporting period in respect of the same taxes, except where new circumstances are identified that were unknown to the tax authority when the desk audit was conducted.

[Part eleven of Article 138 to be deleted with effect from January 1, 2024, by Law of the Republic of Uzbekistan No. ZRU-891 of December 28, 2023; National Database of Legislation, December 29, 2023, No. 03/23/891/0989.]

[Part twelve of Article 138 to be deleted with effect from January 1, 2024, by Law of the Republic of Uzbekistan No. ZRU-891 of December 28, 2023; National Database of Legislation, December 29, 2023, No. 03/23/891/0989.]

If, before a desk audit is completed, the taxpayer submits amended tax reporting in the manner provided by Article 83 of this Code that changes the amount of assessed tax, the desk audit is conducted taking that amended tax reporting into account.

If discrepancies and (or) errors are identified in submitted tax reporting as a result of a desk audit, the tax authority sends the taxpayer, in the manner established by this Code, a demand to correct the tax reporting.

The date on which the demand to correct the tax reporting is sent is deemed the completion date of the desk audit. A desk audit is also deemed completed if no discrepancy and (or) error is identified as a result of the examination and analysis.

Within five days after receiving a demand to make corrections, the taxpayer must submit amended tax reporting for the relevant taxes and levies or a substantiation of the identified discrepancies, together with supporting documents, in the manner established by this Code.

[Part fifteen of Article 138 as amended by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021; National Database of Legislation, December 30, 2021, No. 03/21/741/1219.]

As substantiation of discrepancies identified in the relevant demand from the tax authority, the taxpayer has the right to submit an opinion from a tax-consulting organization. Under an agreement with the taxpayer, the tax-consulting organization may independently submit that substantiation on the taxpayer's behalf.

The head or deputy head of the tax authority considers the taxpayer's submitted substantiations within fifteen days after receiving the relevant documents or substantiations.

If the tax authority agrees in full or in part with the submitted substantiation of the identified discrepancies, it sends the taxpayer a notice revoking the earlier demand or an amended demand to correct the tax reporting.

If the taxpayer does not submit amended tax reporting, including after an amended demand, does not substantiate the identified discrepancies, or submits substantiation that is found insufficient, the tax authority has the right to order a tax audit of the taxpayer.

A desk audit is not conducted for a tax or reporting period during which tax monitoring is being conducted. This rule does not apply if tax monitoring is terminated early.

The rules provided by this Article also apply to desk audits of tax agents and other persons required to submit tax reporting, unless otherwise provided by this Code.

A desk audit concerning reimbursement of value-added tax is conducted, without an order from the tax authority and in the manner established by the Cabinet of Ministers of the Republic of Uzbekistan, within thirty days after the tax authorities are notified of the reimbursement or refund of a negative value-added tax amount upon the taxpayer's submission of tax reporting for the tax period. No demand to correct tax reporting is issued as a result of a desk audit concerning reimbursement of value-added tax.

[Part twenty-two of Article 138 as amended by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

Following a desk audit concerning reimbursement of value-added tax, the tax authorities adopt a decision to reimburse the amount or a reasoned decision refusing reimbursement in full or in part.

The Cabinet of Ministers of the Republic of Uzbekistan approves regulations governing the conduct of desk audits.

[Part twenty-four of Article 138 as amended by Law of the Republic of Uzbekistan No. ZRU-758 of March 11, 2022; National Database of Legislation, March 12, 2022, No. 03/22/758/0207.]

Article 139. Field Tax Audit

A field tax audit is an audit of the fulfillment of certain obligations of taxpayers in the area of calculation and payment of taxes and levies, as well as other obligations provided by tax legislation.

In the course of a field tax audit, analysis is conducted of accounting documentation, the movement of inventory assets and funds, and other information related to the taxpayer's activities.

When conducting field tax audits, the tax authorities are entitled to carry out preventive measures and time-keeping surveys, to inspect the application of cash-register equipment and payment terminals, and to carry out other tax control measures.

A field tax audit is conducted on the basis of an order of the head (deputy head) of the tax authority. The order indicates the name of the taxpayer, the surname, first name, and patronymic and position of the persons conducting the audit, and the period and purpose of the audit.

A field tax audit is conducted within a period not exceeding ten days.

The start of the period for conducting a field tax audit is the date indicated in the order for its assignment.

The end of the period for a field tax audit is the day on which the field tax audit act is handed to the taxpayer or sent to the taxpayer's personal account in the form of an electronic document.

The regulation on conducting a field tax audit is approved by the Cabinet of Ministers of the Republic of Uzbekistan. (Part eight of Article 139 as amended by Law of the Republic of Uzbekistan No. ZRU-758 of March 11, 2022 – National Legislation Database, March 12, 2022, No. 03/22/758/0207)

Article 140. Tax Audit

A tax audit means verification of the correctness of the calculation and payment of taxes and levies for a certain period. A tax audit must be carried out with respect to a taxpayer (tax agent) which belongs to the category of taxpayers (tax agents) with a high risk. Tax authorities must send a notice of a tax audit to the taxpayer at least thirty calendar days before the start of the tax audit. The notice must indicate the date of the start of the tax audit, a list of issues to be verified, a preliminary list of requested documents, as well as other data required for conducting a tax audit. The tax authority is entitled to start a tax audit without prior notification of the taxpayer where there are signs of tax evasion, in agreement with the State Tax Committee of the Republic of Uzbekistan. A tax audit of persons classified as major taxpayers must be carried out by the Interregional State Tax Inspectorate for Major Taxpayers on the basis of an order from the director of the inspectorate (deputy director of the inspectorate). Officials of other tax authorities may be involved in a tax audit. The order of the director (deputy director) of the tax authority on conducting a tax audit must indicate the name and identification number of the taxpayer which is being audited, the surname, first name, patronymic and position of the auditors, the time limits and purpose of the tax audit. The order of the director (deputy director) of the tax authority on the conduct of a tax audit must approve the program for its conducting. Unless otherwise provided by Article 143 of this Code, the tax audit may cover only the period following the last audit, for which the limitation period established by Article 88 of this Code has not expired. In case of voluntary liquidation of a taxpayer, a tax audit may cover no more than three years of the taxpayer's activity immediately preceding the year of the audit. The taxpayer must not be allowed to amend and make additions to the tax reporting of the audited period during the period of the tax audit. The regulation on conducting a tax audit is approved by the Cabinet of Ministers of the Republic of Uzbekistan.

Article 141. Time Limit for a Tax Audit

A tax audit may not last more than thirty days, unless otherwise provided by Article 142 of this Code. The time limit for performing a tax audit must begin on the day the taxpayer (tax agent) receives the order which assigns a tax audit.

Article 142. Extension of the Time Limit for Conducting a Tax Audit

The time limit for conducting a tax audit may be extended up to two months, and in exceptional cases – up to three months, unless otherwise provided by this Article. The grounds and procedure for extending the period of a tax audit must be established by the State Tax Committee of the Republic of Uzbekistan. The director (deputy director) of the tax authority must also have the right to extend a tax audit for:

1. requesting documents (information) in accordance with part one of Article 146 of this Code;
2. receiving information from foreign state bodies within the framework of international treaties of the Republic of Uzbekistan;
3. conducting expert examinations;
4. translation of documents submitted in a foreign language. The extension of a tax audit period on the basis specified in paragraph 1 of part three of this Article must be allowed no more than once for each person from whom documents are requested. The extension of a tax audit period must be formalized by an appropriate order of the director (deputy director) of the tax authority, which performs a tax audit. The total time limit of a tax audit cannot exceed six months. The time limit of a tax audit must end on the day of drawing up (signing) the act on the conducted tax audit.

Article 143. Restrictions on Tax Audits

Tax authorities are not entitled to conduct more than one tax audit of a taxpayer for the same taxes for the same period, unless new circumstances are revealed that were not known to the tax authority during the tax audit. Where new circumstances are revealed, the tax authority is entitled to appoint a repeated tax audit.

Article 146. Request for Documents When Conducting a Tax Audit

A tax authority official conducting a tax audit is entitled to request from the audited person documents necessary for the audit.

The request for submission of documents is transmitted to the audited person (its legal or authorized representative) in person against a signed receipt. If it is impossible to transmit the request for submission of documents in this manner, it is sent in accordance with the procedure established by part two of Article 19 of this Code.

The requested documents may be submitted to the tax authority in person or through a representative, sent by registered mail, or transmitted in electronic form via telecommunication channels or through the taxpayer's personal account.

Documents in paper form are submitted in the form of copies certified by the audited person. Notarization of copies of documents submitted to the tax authority (an official) is not permitted unless otherwise provided by legislation.

Where accounting documentation is compiled in electronic form, the taxpayer (tax agent) is obliged during a tax audit, at the request of tax authority officials, to submit copies of such documentation in paper form, except for invoices registered in the electronic invoice information system.

Where necessary, the tax authority is entitled to inspect the originals of documents.

Documents requested in the course of a tax audit are submitted within five days from the day the relevant request is received. If the audited person is unable to submit the requested documents within the specified period, it notifies the auditing officials in writing.

A notice of the impossibility of submitting documents within the specified period, stating the reasons why the requested documents cannot be submitted, must be sent by the taxpayer within the day following the day of receipt of the request for submission of documents. The notice must indicate the periods within which the taxpayer is able to submit the requested documents.

Within two days of receiving the notification from the taxpayer, the head (deputy head) of the tax authority may, on the basis of that notification, extend the periods for submission of documents or refuse to extend them, to which effect a separate decision is issued.

The refusal of the audited person to submit the requested documents is recorded in a protocol drawn up by a tax authority official. The protocol is signed by the tax authority official and the audited person. Where the audited person refuses to sign the protocol, a corresponding entry is made therein. A refusal to submit, or failure to submit within the established periods, documents requested in the course of a tax audit constitutes grounds for their seizure in accordance with the procedure provided for in Article 148 of this Code.

In the course of a tax audit and other tax control measures, tax authorities may not request from the audited person documents previously submitted to the tax authorities in the course of desk audits or field tax audits of the audited person, or documents submitted in the form of certified copies in the course of tax monitoring. Documents may be re-requested from the audited person if they were previously submitted to the tax authority in the form of originals that were subsequently returned to the audited person, or in cases where documents submitted to the tax authority were lost due to force majeure.

Article 149. Participation of a Witness

Any adult individual who may be aware of any circumstances relevant to the implementation of tax control may be summoned as a witness to give testimony.

The testimony of the witness is recorded in a protocol.

The following persons may not be called as a witness:

• persons who, by reason of their physical or mental disabilities, are unable to correctly perceive the circumstances relevant to the implementation of tax control;
• persons who received information necessary for the conduct of tax control in connection with the performance of their professional duties, where such information constitutes the professional secrecy of those persons. Such persons include, in particular, an advokat, auditor, tax consultant, and mediator.

The testimony of a witness may be taken at the place of the witness's stay where, by reason of illness, old age, or disability, the witness is unable to appear at the tax authority.

Before receiving testimony, an official of the tax authority warns the witness of liability for refusing or evading the giving of testimony, or for knowingly giving false testimony, and a notation to that effect is made in the protocol and certified by the witness's signature.

Employees summoned to the tax authority as witnesses retain their salary at their primary place of employment for the time of their absence from work in connection with appearing at the tax authority.

Article 156. Documentation of the Results of a Tax Audit

On the basis of the results of a tax audit, the authorized tax officials who conducted this audit must prepare a tax audit act. There must be indicated in a tax audit act:

1. the date of the tax audit act, and that date must be understood to be the date on which the act is signed by the persons who performed the audit;
2. the full and abbreviated name or surname, first name and patronymic of the audited person. Where an audit of a legal entity is performed at the location of an economically autonomous subdivision of the legal entity, in addition to the name of the legal entity there must be entered the full and abbreviated name of the audited economically autonomous subdivision and the location of that subdivision;
3. the surnames, first names and patronymics of the persons who performed the audit and their titles, stating the name of the tax authority which they represent;
4. the date and number of the decision of the director (deputy director) of the tax authority on the conduct of the tax audit;
5. a list of documents presented by the audited person in the course of the tax audit;
6. the period in respect of which the audit was performed;
7. the name of the tax in respect of which the tax audit was performed;
8. the dates of the commencement and completion of the tax audit;
9. the address of the location of the legal entity or of the place of residence of the individual;
10. information concerning tax control measures conducted when carrying out the tax audit;
11. a detailed description of the tax offense (if any), with reference to the corresponding provision of tax legislation;
12. conclusion and recommendations with respect to the results of tax audit. Where no violations of tax legislation have been found based on the results of the tax audit, a note to the effect must be entered to the tax audit act. A tax audit act must be accompanied by documents confirming violations of tax legislation which were discovered in the course of the audit. The form and requirements relating to the preparation of a tax audit act must be established by the State Tax Committee of the Republic of Uzbekistan. The tax audit act must be drawn up in at least three copies. The tax officials who conducted the tax audit must sign all copies of the tax audit act. One copy of the tax audit act must be delivered by hand to the taxpayer within three days after its completion. The taxpayer must sign for the receipt of the tax audit act on all copies of the act indicating the date of receipt. The copies of the tax audit act which remain with the tax authority must be attached to the tax audit materials. The signature of the taxpayer in the tax audit act must not mean his agreement with the results of the tax audit. In the event that a taxpayer (his representative) in relation to whom an audit has been performed evade receipt of the tax audit report, that fact must be reflected in the tax audit act. In this case, one copy of the tax audit act must be sent by registered mail to the location of a legal entity (economically autonomous subdivision) or to the place of residence of an individual. Where a tax audit report is sent by registered mail the date of delivery of that report must be considered to be the fifth day counting from the date on which the registered letter was sent A tax audit act must be sent to a foreign legal entity (other than an international organization or a diplomatic mission) which does not carry on activities in the territory of the Republic of Uzbekistan through a permanent establishment by registered mail to the address contained in the Unified State Register of Taxpayers of the Republic of Uzbekistan. The date of delivery of the act must be considered to be the twentieth day counting from the date on which the registered letter was sent. Where a person in relation to whom a tax audit has been performed (or his representative) disagrees with statements made in the tax audit act and (or) with the conclusions and recommendations of the auditors, that person must have the right, within ten days after receiving the tax audit act, present to the appropriate tax authority written objections relating to the act as a whole or to individual points therein. In this respect, the taxpayer is entitled to present together with the written objections or to provide to the tax authority within an agreed time limit documents (or certified copies thereof) which prove the validity of its objections.

Article 157. Procedure for Examination of Cases Concerning Tax Offenses

Cases concerning tax offenses identified as a result of a tax audit, a field tax audit, or a review conducted within the framework of initiated criminal proceedings are examined in the manner provided by Articles 158 and 159 of this Code. The specified procedure for examination also applies to tax offenses provided for in Articles 223 or 224 of this Code.

Cases concerning tax offenses not provided for in part one of this Article, which are identified as a result of tax audits and/or other tax control measures, are examined in the manner provided by Articles 165 and 166 of this Code, unless otherwise provided by Article 159.1 of this Code.

Failure by officials of tax authorities to comply with the requirements established by this Code may constitute a ground for a decision of a tax authority to be set aside by a higher tax authority or a court.

A violation of the material conditions of the procedure for examining tax audit materials constitutes a ground for the tax authority's decision on the imposition of liability for the commission of a tax offense and/or on the accrual of additional tax amounts to be set aside by a higher tax authority or a court. Such material conditions include ensuring that the person in respect of whom the audit was conducted has the opportunity to participate in the process of examining the tax audit materials in person and/or through a representative, and ensuring that the taxpayer has the opportunity to present explanations.

Other violations of the procedure for examining tax audit materials may also serve as grounds for a higher tax authority or a court to set aside a decision of a tax authority, provided that such violations resulted in, or could have resulted in, the adoption of an unlawful decision by the head (deputy head) of the tax authority.

Article 158. Procedure for Examination of Materials of a Tax Audit and a Field Tax Audit

A tax audit act and (or) materials of a field tax audit in the course of which violations of tax legislation were identified, unless otherwise provided by Article 159.1 of this Code, must be examined by the director (deputy director) of the tax authority that conducted the tax audit, or – in cases where the tax audit was conducted by another territorial tax authority or another authorized body – by the director (deputy director) of the tax authority at the taxpayer's place of registration, no earlier than ten days but no later than fifteen days from the date on which the act of that tax audit was drawn up. The decision on those materials must be adopted no later than five days after the examination of the tax audit materials.

If the audited person (or that person's representative) has submitted, within the period provided for in part twelve of Article 156 of this Code, written objections to the tax audit act and (or) to the field tax audit, those objections must also be examined.

The tax authority must notify the taxpayer of the date, time, and place of examination of the audit materials no less than two working days before the examination commences. Upon the taxpayer's application or on the initiative of the tax authority (with the taxpayer's consent), where both parties have the technical capability to use video conferencing, the audit materials may be examined by means of video conference, and an audio-visual recording of the examination is made available to the taxpayer through the taxpayer's personal account. Notification of the date and electronic address for examination of the audit materials by video conference is sent to the taxpayer's personal account no less than two working days before the examination commences.

If the taxpayer has notified the tax authority that it is unable to appear for the examination of the tax audit materials for justified reasons, the director (deputy director) of the tax authority adopts a decision to postpone the examination of the tax audit materials for a period of not more than five days, and the taxpayer is notified of that postponement.

The person in relation to whom the tax audit and (or) field tax audit was conducted is entitled to participate in the examination of the tax audit materials in person and (or) through a representative.

The non-appearance of the person in relation to whom the tax audit and (or) field tax audit was conducted (or that person's representative), where that person has been duly notified of the time and place of the examination of the audit materials, does not prevent the examination of the audit materials, except where the director (deputy director) of the tax authority determines that the participation of that person is essential for the examination of those materials.

Before the examination of the tax audit materials on their merits commences, the director (deputy director) of the tax authority must:

1. announce who is to examine the case and which tax audit materials are to be examined;

2. establish whether persons invited to participate in the examination are present.

In the event that such persons are not present, the director (deputy director) of the tax authority determines whether the parties to the proceedings were notified in the established manner and adopts a decision to examine the tax audit materials in the absence of those persons or to postpone the examination;

3. where a representative of the person in relation to whom the tax audit was conducted is participating, verify the authority of that representative;

4. explain to the persons participating in the examination procedure their rights and obligations;

5. issue a decision to postpone the examination of the tax audit materials in the event of the non-appearance of a person whose participation is essential for the examination.

In the course of examination of the materials of the tax audit and (or) field tax audit, the audit act, and where necessary, other materials of tax control measures and the written objections of the person in relation to whom the audit was conducted, may be read out.

The absence of written objections does not deprive that person (or that person's representative) of the right to give oral explanations at the stage of examination of the audit materials.

In the examination of the materials of the tax audit and (or) field tax audit, the evidence presented is examined, including documents previously requested from the person in relation to whom the audit was conducted, documents submitted to the tax authorities in the course of those tax audits of that person, and other documents in the tax authority's possession.

Evidence obtained in violation of this Code may not be used.

Additional documents (information) on the activities of the taxpayer may be examined even if they are submitted to the tax authority in violation of the time limits established by this Code.

In the course of examination of the materials of the tax audit and (or) field tax audit, a decision may be adopted, where necessary, to engage a witness, expert, or specialist to take part in the examination.

Minutes are kept in the course of examination of the tax audit materials.

In the course of examination of the tax audit and (or) field tax audit materials, the director (deputy director) of the tax authority determines:

1. whether the person in relation to whom the tax audit act was drawn up committed a violation of tax legislation;

2. whether the identified violations constitute a tax offence;

3. whether grounds exist for holding the person liable for the commission of a tax offence;

4. whether the taxpayer's objections are grounded.

Where a tax offence is present, the director (deputy director) of the tax authority identifies circumstances that exclude the culpability of the person for the commission of the tax offence, or circumstances that mitigate or aggravate liability for the commission of the tax offence.

Where additional evidence needs to be obtained in order to confirm whether violations of tax legislation were or were not committed, the director (deputy director) of the tax authority is entitled to issue a decision on the conduct of additional tax control measures within a period not exceeding one month.

The decision ordering the conduct of additional tax control measures must set out the circumstances that gave rise to the need for those additional measures and must specify the deadline and the specific form of the measures.

Additional tax control measures may include requesting documents in accordance with Articles 146 and 147 of this Code, questioning a witness, and conducting an expert examination.

The commencement and completion of the additional tax control measures, information on the tax control measures conducted, the additional evidence obtained confirming or ruling out the commission of violations of tax legislation, the conclusions and recommendations of the inspectors regarding the remediation of identified violations, and references to Articles of this Code where this Code prescribes liability for those violations of tax legislation, are recorded in an addendum to the tax audit act and (or) field tax audit act.

The addendum to the tax audit act and (or) field tax audit act must be prepared and signed by the officials of the tax authority who conducted the additional tax control measures within ten days from the date on which those measures were completed.

The addendum to the tax audit act and (or) field tax audit act, together with the materials obtained as a result of the additional tax control measures, must be delivered to the person in relation to whom the audit was conducted (or that person's representative) within three days from the date on which the addendum was prepared, against signed receipt or by another means confirming the date of receipt.

If the person in relation to whom the audit was conducted (or that person's representative) evades receipt of the addendum to the tax audit act and (or) field tax audit act, that fact is recorded in the addendum to the audit act. In that case, the addendum to the audit act is sent by registered mail to the location of the organization (separate subdivision) or to the place of residence of the individual and is considered to have been received on the fifth day from the date on which the registered letter was sent.

The person in relation to whom the tax audit and (or) field tax audit was conducted (or that person's representative) may, within ten days of receiving the addendum to the audit act, submit written objections to the tax authority regarding that addendum as a whole or regarding individual provisions thereof.

Article 159. Decision Following Consideration of Tax-Audit and Field-Tax-Audit Materials

After considering tax-audit and field-tax-audit materials in the manner provided by Article 158 of this Code, the head or deputy head of the tax authority, unless otherwise provided by Article 159.1 of this Code, adopts a decision (a "decision based on the results of a tax audit") providing for:

1. additional assessment of taxes and late-payment interest, or refusal to make such an assessment;

2. imposition of liability on the taxpayer for a tax offense, or refusal to impose such liability.

A decision imposing liability on a person for a tax offense sets out the circumstances of the offense as established by the tax audit, with references to the documents and other information confirming those circumstances, the arguments presented in defense by the person audited, and the results of examination of those arguments.

A decision imposing liability on a person for a tax offense states the Articles of this Code providing for those offenses and the applicable measures of liability.

A decision providing for additional assessment of taxes states the amount of tax arrears identified during the audit and the corresponding amount of late-payment interest.

A decision refusing to impose liability for a tax offense sets out the circumstances on which that refusal is based.

A decision based on the results of a tax audit states the period during which the person in respect of whom it was issued has the right to appeal it and the procedure for appealing the decision to a higher tax authority or a court.

[Part six of Article 159 as amended by Law of the Republic of Uzbekistan No. ZRU-910 of February 20, 2024; National Database of Legislation, February 21, 2024, No. 03/24/910/0140.]

If a tax audit identifies an amount of tax excessively refunded pursuant to a tax-authority decision, the decision additionally assessing taxes recognizes that amount as tax arrears in respect of the relevant tax. If the tax amount was refunded to the taxpayer, it is recognized as tax arrears from the date the taxpayer actually received the funds; if the tax amount was accepted for offset, it is recognized as tax arrears from the date it was accepted for offset.

After adopting a decision based on the results of a tax audit and (or) field tax audit, the head or deputy head of the tax authority has the right to adopt interim protective measures to secure performance of that decision in the manner and on the conditions provided by Article 161 of this Code.

Article 159.1. Special Features for Organizing a Field Tax Audit, Examining Audit Materials, and Adopting a Decision on the Results in Certain Cases

Where employees of tax authorities identify at enterprises within their assigned territory or in mahallas the commission of tax offences or the existence of circumstances established by part one of Article 221, paragraphs thirteen and fifteen of part three of Article 223, and part seventeen of Article 429 of this Code, an official warning is first issued to the taxpayer and that document is sent in electronic form to the taxpayer's personal account. If those tax offences or circumstances are not remedied within three days after the official warning, or if their repeated commission is identified, a field tax audit is conducted in relation to that taxpayer.

Materials of a field tax audit concerning tax offences provided for in paragraphs thirteen and fifteen of part three of Article 223 of this Code must be examined by the director (deputy director) of the tax authority that conducted the tax audit no earlier than one day but no later than three days from the date on which the act of that tax audit was drawn up. The decision on those materials must be adopted no later than one day after the examination of the tax audit materials.

The provisions of part two and parts six through eighteen of Article 165 of this Code do not apply to field tax audit acts concerning tax offences provided for in part one of Article 221 and circumstances provided for in part seventeen of Article 429 of this Code. The decision based on the act of a field tax audit conducted in relation to those offences or circumstances is adopted by the director (deputy director) of the tax authority that conducted the tax audit no earlier than one day but no later than three days from the date on which the act of that tax audit was drawn up.

A decision adopted in the manner provided for by this Article on the results of a field tax audit enters into force three days after it is delivered to the person in relation to whom it was adopted (or that person's representative) or after it is sent to the taxpayer's personal account as an electronic document.

The form of the official warning for a business entity that has for the first time committed a tax offence or given rise to a circumstance provided for in part one of this Article is approved by the Cabinet of Ministers of the Republic of Uzbekistan.

Article 160. Entry into Force of a Decision on the Results of Examination of Materials of a Tax Audit and a Field Tax Audit

A decision on the results of a tax audit and (or) a field tax audit, adopted in the manner provided for by Article 159 of this Code, unless otherwise provided by Article 159.1 of this Code, enters into force one month after it is delivered to the person in relation to whom it was adopted (or that person's representative).

A decision on the results of a tax audit and (or) a field tax audit must be delivered within two days of its adoption to the person in relation to whom it was adopted (or that person's representative) against signed receipt or by another means confirming the date of receipt.

If the decision cannot be delivered or transmitted by another means confirming the date of receipt, it is sent by registered mail to the location of the legal entity (separate subdivision) or to the place of residence of the individual. Where a decision is sent by registered mail, the date of delivery is considered to be the fifth day from the date on which the registered letter was sent.

Where an appeal is filed against a decision of the tax authority, that decision enters into force in the manner provided for by Article 163 of this Code.

The person in relation to whom a decision has been issued is entitled to execute the decision in whole or in part before it enters into force. The filing of an appeal does not deprive that person of the right to execute a decision that has not yet entered into force, in whole or in part.

Article 161. Injunctive Measures

Following the issuance of a decision which is based on the results of a tax audit, the director (deputy director) of a tax authority is entitled to take measures aimed at ensuring the enforceability of the decision in question (injunctive measures). Injunctive measures must be taken where there are sufficient grounds to believe that failure to take such measures might make it difficult or impossible in the future to enforce that decision or to recover the arrears, which are stated in the decision to prosecute a tax offense. In order to take injunctive measures the director (deputy director) of the tax authority must issue an appropriate decision. The specified decision must enter into force from the day on which it is issued and must have force until the day of the execution of the decision on the imposition of sanctions for the commission of a tax offence and (or) the decision on additional tax assessment, or until the day on which the issued decision is rescinded by a higher tax authority or a court. The director (deputy director) of a tax authority is entitled to adopt a decision to cancel injunctive measures or a decision to replace injunctive measures in cases provided for by part eleven of this Article. A decision to cancel (replace) injunctive measures must enter into force from the day on which it is issued. Injunctive measures may take the form of a prohibition on the alienation (pledging) of the taxpayer’s assets without the tax authority’s consent and the suspension of transactions on bank accounts in the manner prescribed by Article 111 of this Code. The prohibition which is provided for in this subsection on alienation (pledging) must be applied consecutively to:

1. immovable property, including immovable property which is not used in the production of products (work and services);
2. means of transport, securities, office interior design items;
3. other assets, other than finished products, raw materials and other supplies;
4. finished products, raw materials and other supplies. In this respect, a prohibition on the alienation (pledging) of assets of each successive group must be imposed in the event that the aggregate value of the assets in the preceding groups is less than the total amount of arrears on the basis of the decision concerning the results of a tax audit and field tax audit. In this case, the value of the assets must be determined according to the accounting data. The suspension of operations on bank accounts by way of taking injunctive measures may be applied only after a prohibition has been imposed on the alienation (pledging) of assets and in the event that the aggregate value of such assets according to accounting data is less than the total amount of arrears. The suspension of operations on bank accounts may be applied in relation to the difference between the total amount of arrears indicated in the decision based on the results of a tax audit and the value of assets, which cannot be alienated (pledged). At the request of a person in relation to whom a decision on the taking of injunctive measures has been issued, a tax authority is entitled to allow the injunctive measures which are provided for in part six of this Article to be replaced by:
5. a bank guarantee confirming that the bank undertakes to pay the amount of arrears specified in the decision on the imposition of sanctions for the commission of a tax offence and (or) the decision on additional accrual taxes in the event that those amounts are not paid by the principal within the time limit established by tax authority;
6. a pledge of securities which are circulated on the organized securities market or a pledge of other assets executed in accordance with the procedure prescribed by Article 107 of this Code;
7. a third-party surety bond executed in accordance with the procedure prescribed by Article 108 of this Code. In the event that a taxpayer provides a valid bank guarantee issued for the amount to be paid to the budgetary system indicated in a decision concerning the results of a tax audit and (or) a field tax audit, the tax authority must not have the right to refuse the taxpayer’s request for the replacement of the injunctive measures which are provided for in part six of this Article. Copies of a decision on the taking of injunctive measures and a decision on the cancellation of injunctive measures must, within five days after its issuance, be delivered by hand to the person in relation to whom the decision has been issued or to his representative against receipt or must be transmitted in another manner which provides evidence of the date on which the taxpayer received the decision in question. Where a copy of a decision is sent by registered mail the decision must be considered to have been received upon the lapse of five days from the date on which the registered letter was sent.

Article 162. Special Considerations With Relation to the Execution of Decisions of Tax Authorities

An authorized official of a tax authority who has performed a field tax audit or tax audit must draw up an administrative offence protocol within the limits of his competence in relation to violations found by the tax authority for which individuals or officials of legal entities are liable to administrative sanctions. The examination of cases concerning such offences and the application of administrative punishments in relation to individuals and officials of legal entities who are guilty of committing them must take place in accordance with the legislation on administrative responsibility. Where a tax authority, after issuing a decision holding an individual liable for a tax offense, sends the materials to the prosecutor's office, that tax authority must suspend execution of the decision holding that individual liable for the tax offense. Simultaneously with the submission of materials to the prosecutor's office, the execution of the decision to recover tax arrears from this individual must be suspended. Such suspension must be effected by the decision of the director (deputy director) of the tax authority no later than the day following the day the materials are sent to the prosecutor's office. In this respect, the running of the time limits for recovery of tax arrears which are stipulated by this Code must be suspended for the period of the suspension of the decision on the recovery of the relevant tax arrears. Where, following the examination of materials, a resolution is issued not to institute a criminal case or a resolution is issued to terminate a criminal case, the suspended decisions of the tax authority must be resumed. The resumption of action must be made by the decision of the director (deputy director) of the tax authority no later than the day following the day on which it received notification of those facts from the prosecutor's office. A similar rule must apply where a judgment of acquittal is rendered in a relevant criminal case. Where an action (omission) on the part of an individual which was the basis for the imposition of sanctions for the commission of a tax offence has become the basis for the rendering of a guilty verdict in relation to that individual, the tax authority must rescind the decision issued insofar as it concerns the imposition on the individual of sanctions for the commission of a tax offence. Prosecution bodies which have received materials from tax authorities must send the tax authorities notifications of the results of the examination of those materials not later than the day following the day on which the relevant decision is adopted. Copies of decisions of a tax authority such as are referred to in this Article must be transmitted (sent) by the tax authority to the person in relation to whom the decision in question was adopted (his representative) within five days from the day on which the decision was issued. The provisions established by this Article must apply to individuals who are taxpayers, levy payers and (or) tax agents.

Article 165. Proceedings With Respect to Cases of Tax Offenses

Upon discovering evidence of violations of tax legislation for which sanctions are provided for by part two of Article 157 of this Code, a tax authority official must prepare an act, which must be signed by that official and by the person who committed the violation. An act in the prescribed form must be drawn up within ten days from the day on which such violation is discovered, The act must contain documented evidence of violations of tax legislation and the conclusions and recommendations of the official who discovered the evidence of violations of tax legislation with respect to the rectification of the violations revealed. The form of the act and the requirements relating to the preparation thereof must be established by the State Tax Committee of the Republic of Uzbekistan. The act must be delivered by hand to the person who committed the tax offence against receipt or must be transmitted in another manner which provides evidence of the date of receipt of that act. In the event that the person concerned evades receipt of that act, an official of the tax authority must make a note to this effect in the act. In this case, the act must be sent to that person by registered mail. In the event that the act is sent by registered mail, the date of delivery of the report must be deemed to be the fifth day commencing from the day on which it was despatched. In the event that a person who has committed a tax offence disagrees with the statements made in the act or with the conclusions and recommendations of the official who discovered the occurrence of the tax offence, that person may, within a period of ten days from the date of receipt of the act, present to the appropriate tax authority written objections relating to the act as a whole or to individual points therein. In this respect, that person is entitled to present together with the written objections or to transmit to the tax authority within an agreed time limit documents (their certified copies thereof) which prove the validity of the objections. Upon the expiration of the time limit which is referred to in part six of this Article, the director (deputy director) of the tax authority must examine the act which sets out evidence of violations of tax legislation and the documents and materials submitted by the person who committed the offence. The act must be examined in the presence of the person who is called to account or of his representative. The tax authority must notify the taxpayer of the date, time and place of consideration of the audit act at least two working days before it is considered. If the taxpayer has notified the tax authority that it is impossible to appear for examination of the act for justified reasons, the director (deputy director) of the tax authority must adopt a decision to postpone the examination of the act for a period of no more than three days, and must notify the taxpayer about this decision. The non-appearance of a person called to account for the commission of a tax offence who has been duly notified, or of a representative of that person, must not prevent the director (deputy director) of the tax authority from examining the act in the absence of that person. Upon the examination of an act, the prepared act, other materials relating to tax control measures and the written objections of the person who is called to account for the commission of a tax offence may be read out. The absence of written objections must not deprive that person of the right to give his explanations at the stage of the examination of the act. Upon the examination of a report, the explanations of the person who is called to account must be heard and other evidence must be examined. It must not be permissible to use evidence obtained not in compliance with this Code. Documents (information) submitted by the person being held liable may be considered even if they were submitted to the tax authority after the time limits established by this Code. Minutes must be kept during consideration of the act. In the course of the examination of a report and other materials relating to tax control measures, a decision may be adopted, where necessary, to engage a witness, expert or specialist to take part in the examination. In considering the act and other materials, the director (deputy director) of the tax authority must determine:

1. whether or not the person in relation to whom the act was prepared has committed a violation of tax legislation;
2. whether or not the violations found constitute tax offences which are contained in this Code;
3. whether or not there are grounds for calling the person in relation to whom the act was prepared to account for the commission of a tax offence. Where a tax offense is established, the director (deputy director) of the tax authority must identify circumstances which eliminate culpability for the commission of a tax offence or circumstances which mitigate or increase liability for the commission of a tax offence.

Article 166. Decision on Tax-Offense Materials

After considering the report and documents and materials attached to it in the manner provided by Article 165 of this Code, the head or deputy head of the tax authority adopts a decision providing for:

1. additional assessment of taxes and late-payment interest, or refusal to make such an assessment;

2. imposition of liability on the taxpayer for a tax offense, or refusal to impose such liability.

The decision specified in part one of this Article is adopted within five days after consideration of the report.

A decision imposing liability on a person for a tax offense sets out the circumstances of the offense and states the documents and other information confirming those circumstances, the arguments presented in defense by the person subject to liability, and the results of examination of those arguments. The decision also states the Articles of this Code providing for those offenses and the applicable measures of liability.

A decision imposing liability on a person for a tax offense states the period during which the person in respect of whom it was issued has the right to appeal it and the procedure for appealing the decision to a higher tax authority or a court.

[Part four of Article 166 as amended by Law of the Republic of Uzbekistan No. ZRU-910 of February 20, 2024; National Database of Legislation, February 21, 2024, No. 03/24/910/0140.]

For identified violations of tax legislation for which persons are subject to administrative liability, an authorized official of the tax authority draws up an administrative-offense report. Cases concerning those offenses are considered, and administrative penalties are imposed on the persons responsible for them, in accordance with administrative-liability legislation.

Article 169. General Provisions on Tax Monitoring

The subject matter of tax monitoring is compliance with tax legislation, correct calculation, and complete and timely payment (remittance) of taxes and levies by the legal entity in respect of which tax monitoring is conducted.

Tax monitoring covers all taxes and levies in relation to which the legal entity is a taxpayer or tax agent in accordance with this Code.

Tax monitoring is voluntary for the taxpayer.

Tax monitoring is conducted by the tax authority on the basis of a decision to conduct tax monitoring.

A legal entity is entitled to apply to the tax authority for tax monitoring if its income for the previous year, according to the annual financial statements, amounted to not less than five billion soums.

The period for which tax monitoring is conducted is the calendar year following the year in which the legal entity submitted an application for tax monitoring to the tax authority.

Tax monitoring commences from January 1 of the year for which tax monitoring is conducted and ends on July 1 of the year following the period for which tax monitoring was conducted.

Article 180. Controlled Transactions between Related Parties

For the purposes of this Code, transactions between related parties are recognized as controlled transactions, subject to the special features provided for in this Article.

A transaction between related parties who are tax residents of the Republic of Uzbekistan is recognized as controlled if at least one of the following circumstances exists:

1. the amount of income from transactions (the sum of transaction prices) between the specified persons for the relevant calendar year exceeds five billion soums;

2. at least one party to the transaction applies a special tax regime or is a participant in a special economic zone, and among the other parties to that transaction there is a person not applying special tax regimes;

3. at least one party to the transaction is exempt from profit tax, applies a reduced tax rate, or applies other tax incentives, and among the other parties to that transaction there is a person not exempt from that tax and not applying incentives;

4. the subject of the transaction is a mineral extracted by one of the parties to the transaction, and the subsoil use tax on that mineral provides for an ad valorem tax rate.

The transactions specified in paragraphs 2 through 4 of part two of this Article are recognized as controlled if the amount of income from transactions between the specified persons for the relevant calendar year exceeds five hundred million soums.

For the purposes of this Code, a sequence or combination of transactions for the sale of goods (services), conducted with the participation (mediation) of persons who are not related to the first seller and the final buyer of those goods (services), is equated with a transaction between related parties if the specified seller and buyer are related parties. In such cases, the existence of third parties with whose participation (mediation) the specified sequence or combination of transactions is conducted is disregarded.

The rule established by part four of this Article applies provided that such third parties participating in the specified sequence or combination of transactions:

1. do not perform any additional functions within that sequence or combination of transactions, other than organizing the sale (resale) of goods (services) from one person to another;

2. do not assume any risks or use any assets for organizing the sale (resale) of goods (services) from one person to another.

For the purposes of this Article, the amount of income from transactions for a calendar year is determined by adding together the amounts of income received from such transactions with one person (related parties) for the calendar year, taking into account the income-recognition procedure established for profit tax.

For the purpose of determining income in controlled transactions for tax purposes, the Tax Committee of the Republic of Uzbekistan compares such transactions or a combination of such transactions (hereinafter in this Section referred to as the tested transaction) with one or more transactions whose parties are independent persons (hereinafter in this Section referred to as comparable transactions). Such comparison is made for the purpose of selecting and subsequently applying the transfer pricing income-determination methods provided for in this Section.

In determining the amount of income from transactions, the Tax Committee of the Republic of Uzbekistan is entitled to verify whether the amounts of income received from transactions correspond to the market level, taking into account the provisions of Chapters 22 and 23 of this Code.

On application of the Tax Committee of the Republic of Uzbekistan, a court may recognize a transaction as controlled where there are sufficient grounds to consider that it forms part of a group of homogeneous transactions concluded for the purpose of creating conditions under which such a transaction would not meet the controlled-transaction criteria established by this Article.

Transactions between related parties for the provision of an interest-free loan (funds) are not recognized as controlled transactions if all parties and beneficiaries participating in such transactions are tax residents of the Republic of Uzbekistan and the obligations under such loan agreements are performed exclusively on the territory of the Republic of Uzbekistan.

Article 182. Notification of Controlled Transactions

Taxpayers must notify tax authorities of controlled transactions such as are referred to in Articles 180 and 181 of this Code which they concluded in a calendar year. Information on controlled transactions must be given in notifications of controlled transactions which must be sent by a taxpayer to the tax authority for its location (place of residence) not later than the time limit for submitting annual financial statements for the calendar year in which controlled transactions were concluded. Information on controlled transactions must include the following:

1. the calendar year for which information on controlled transactions by the taxpayer is provided;
2. the subject of transactions;
3. details of the parties to the transactions: a) the full name of the legal entity and its taxpayer identification number (if the legal entity is registered with the tax authorities in the Republic of Uzbekistan); b) the surname, first name, patronymic of an individual entrepreneur and his taxpayer identification number; c) the surname, first name, patronymic and citizenship of an individual who is not an individual entrepreneur;
4. the amount of income received and (or) the amount of expenses (losses incurred) in connection with controlled transactions with a separate indication of amounts of income and (or) expenses attributable to transactions for which prices are subject to regulation in accordance with legislation. The information referred to in this clause may be prepared in relation to a group of homogeneous transactions. In the event that it is discovered that information was not entered fully or inaccuracies or errors were made when completing a submitted notification of controlled transactions, the taxpayer is entitled to submit a revised notification. Notification of controlled transactions may be presented to a tax authority using a standard paper form or using prescribed formats in electronic form. The form of a notification of controlled transactions, and the procedures for completing it and submitting it electronically, must be determined by the Cabinet of Ministers of the Republic of Uzbekistan. A tax authority which has received a notification of controlled transactions must, within ten days after receiving that notification, forward it in electronic form to the State Tax Committee of the Republic of Uzbekistan. Should a tax authority conducting a tax audit or tax monitoring discover evidence of the conclusion of controlled transactions regarding which information has not been presented in accordance with part two of this Article, that tax authority must independently give notice to the State Tax Committee of the Republic of Uzbekistan of the discovery of controlled transactions and send the information which it has obtained concerning those transactions. A tax authority conducting a tax audit or tax monitoring must notify the taxpayer of the sending of a notice and relevant information to the State Tax Committee of the Republic of Uzbekistan not later than ten days from the date on which notice is sent. The form of the notice and the procedure for sending it must be approved by the State Tax Committee of the Republic of Uzbekistan. The sending by a tax authority which is performing a tax audit of information received by it concerning controlled transactions to the State Tax Committee of the Republic of Uzbekistan must not prevent the audit from being continued and (or) completed or a decision from being issued on the basis of the audit materials examination results in accordance with the established procedure.

Article 187. Financial Indicators and Profit Margin Range

The following profit margin indicators may be used in the manner prescribed by Articles 189-192 of this Code for the purpose of determining for taxation purposes income in controlled transactions:

1. gross profit margin, which is determined as the ratio of gross profit to receipts from sales calculated exclusive of excise tax and value added tax;
2. gross return on costs, which is determined as the ratio of gross profit to the cost of production of goods (services) sold;
3. return on sales, which is determined as the ratio of profit from the main activity to the receipts from the sale of goods (services), calculated exclusive of excise duties and value added tax;
4. return on costs, defined as the ratio of profit from core activities to the sum of the cost of goods (services) sold, sales costs and administrative costs associated with the sale of goods (services);
5. return on sales and administrative expenses, which is determined as the ratio of gross profit from the sale of goods (services) to sales and administrative costs associated with the sale of goods (services);
6. return on assets, which is determined as the ratio of profit from core activities to the current market value of assets (non-circulating and circulating) which are directly or indirectly used in the analyzed transaction. In the absence of required information on the current market value of assets, return on assets may be determined on the basis of data in accounting (financial) statements. For the purposes of this Chapter, the profitability indicators and other financial indicators must be determined in the case of legal entities of the Republic of Uzbekistan on the basis of data in accounting (financial) statements which are prepared in accordance with the accounting legislation of the Republic of Uzbekistan. In the case of foreign legal entities the specified financial indicators must be determined on the basis of data in accounting (financial) statements which are prepared in accordance with the legislation of foreign states. In this respect, adjustments must be made to render the data comparable with data in accounting (financial) statements which are prepared in accordance with the accounting legislation of the Republic of Uzbekistan. The profit margin range must be determined using profit margin values determined for no less than four comparable transactions, including transactions concluded by the taxpayer provided that those transactions were not controlled, or on the basis of data in the accounting (financial) statements of no less than four comparable legal entities. The above-mentioned legal entities must be selected according to the sector in which they operate and the particular types of activity carried out by them under comparable economic (commercial) conditions relative to the controlled transaction. Where the sector to which a person who is a party to the controlled transaction belongs does not have legal entities which are independent of this person, the selection of legal entities for the purpose of carrying out the functional analysis must be made by reference to the comparability of functions carried out by those legal entities, the risks taken by them and assets used. In the absence of information on four or more comparable transactions or in the absence of information on the accounting (financial) statements of four or more comparable legal entities, the profit margin range may be determined using information on a lesser number of comparable transactions (the accounting (financial) statements of a lesser number of legal entities). For the purposes of applying the methods referred to in clauses 2-4 of part one of Article 186 of this Code, the profit margin range must be determined in the following manner. First, the set of profit margin values which are used to determine the profit margin range must be arranged in ascending order, forming a sample set to be used in determining that range. In this respect, each profit margin value, starting with the lowest, must be assigned a sequential number. In the event that a sample contains two or more identical profit margin values, all such values must be included in the sample set. The profit margin of the tested transaction must not be taken into account in determining the profit margin range. Then, depending on whether the number of profit margin values in the sample set is divided by four without a remainder, the profit margin range must be determined in one of two ways:
7. where this number is divisible without a remainder, the minimum value of the profit margin range must be taken to be equal to half the sum of the profit margin values which have, in the sample set, a sequential number that is equal to the quotient of the division, and the next sequential number in ascending order. In this case, the maximum value of the profit margin range must be taken to be equal to half the sum of the profit margin values which have, in the sample set, sequential number that is equal to three times the quotient of division, and the next sequential number in ascending order;
8. where this number is not divisible without a remainder, the minimum value of the profit margin range must be taken to be equal to the profit margin value, which has, in the sample set, a sequential number that is equal to the integer part of the quotient of division, plus one. In this case, the maximum value of the profit margin range must be taken to be equal to the profit margin value, which has, in the sample set, a sequential number that is equal to the threefold integer part of the quotient of division, plus one. The profit margin based on results of activity carried out under comparable economic (commercial) conditions may be calculated on the basis of data in a legal entity’s financial statements on condition that the following conditions are simultaneously met:
9. the legal entity carries out comparable activities and performs comparable functions related to those activities. The comparability of activities may be determined by reference to types of economic activity provided for in the National Classifier of Types of Economic Activity of the Republic of Uzbekistan and international and other classifications;
10. the aggregate amount of the legal entity’s net assets is not a negative value according to data in accounting (financial) statements as at 31 December of the last of the years for which the profit margin is calculated;
11. the legal entity’s accounting (financial) statements do not show losses from sales in more than one of the years for which the profit margin is calculated;
12. the legal entity does not have a direct and (or) indirect participating interest amounting to more than 25 per cent in another legal entity or does not have as a participant (shareholder) another legal entity holding a direct participating interest of more than 25 per cent. The criterion provided for in paragraph 4 of part eight of this Article must not apply where information on consolidated accounting statements of legal entities is available which is used in calculating the profit margin range. If fewer than four organizations remain as a result of applying the conditions set out in parts ten and eleven of this Article, the participating interest criteria set out in paragraph 4 of part eight of this Article may be raised from 25 to 50 per cent. The profit margin range must be calculated using information available at the time of the controlled transaction, or information close to that time, but not later than 31 December of the calendar year in which the transaction was concluded. Instead of the information specified in part eleven of this Article, data in accounting (financial) statements for the three calendar years directly preceding the calendar year in which a controlled transaction was concluded (or the calendar year in which prices in the controlled transaction were established) may be used. The above-mentioned information must include information held by the taxpayer on transactions concluded by it with independent persons. For the purpose of ensuring comparability when determining the market profit margin range on the basis of data in accounting (financial) statements of comparable legal entities, profit margin data may change in order to adjust existing differences. Such adjustments must be made, in particular to allow for differences in accounts receivable, accounts payable and inventories indicated by data in accounting (financial) statements of the taxpayer and of legal entities whose accounting (financial) statements contain data which are used for the purpose of determining the profit margin range.

Article 188. The Comparable Market Price Method

The comparable market price method is a method of determining the conformity of the price of goods (work and services) in a controlled transaction to the market price by comparing the price used in the controlled transaction with the market price range which is determined in the manner prescribed in parts two through seven of this Article. Where information is available concerning only one comparable transaction involving identical (similar) goods (services), the price of that transaction may be taken as both the lowest and the highest value of the market price range only on condition that the commercial and (or) financial conditions of that transaction are wholly comparable with the commercial and (or) financial conditions of the controlled transaction. This rule must be also applicable where those conditions are rendered fully comparable with the aid of appropriate adjustments. The rules provided for in this part must not apply where the seller of goods (services) in the comparable transaction holds a dominant position on the market for those goods (services). Where information is available concerning a number of comparable transactions (including transactions concluded by the taxpayer with independent persons) involving identical (similar) goods (services), the market price range must be determined in the following order. Initially, the set of prices used in comparable transactions which are to be used in determining the market price range must be arranged in ascending order, forming a sample set to be used in determining that range. In this respect, each price value, starting with the lowest value, must be assigned a sequential number. Where a sample set contains two or more identical price values, all such values must be included in the sample set. The price used in the controlled transaction must not be taken into account in determining the market price range. Where there is a sufficient number of comparable transactions concluded by the taxpayer with independent persons, information on other transactions may not be taken into account in determining the market price range. Then, on the basis of the formed sample set, a market price range must be determined in the manner prescribed by part nine of Article 187 of this Code concerning determination of the profit margin range. The market price range must be determined on the basis of available information on prices used during the period examined or information as at the closest date prior to the conclusion of the controlled transaction. Where exchange quotations are used, the market price range must be determined on the basis of the prices of transactions involving identical (similar) goods which were registered by the relevant exchange on the basis of information published by or obtained upon request from that exchange. In this case, the market price range must be taken to be the range between the lowest and highest transaction prices registered by the exchange at the date of their conclusion. When determining the market price range on the basis of exchange quotations, allowance may be made for differences in the economic (commercial) conditions of the above-mentioned transactions, in particular by making the following adjustments:

1. reasonable expenses needed to deliver goods (work and services) to a particular market which are supported by documents and (or) information sources;
2. expenses for the payment of customs duties;
3. conditions of payment;
4. commission (agency) fees payable to a trade broker (trader or agent) for the performance of intermediary trading functions. Where data from price information agencies concerning prices (price ranges) for identical (similar) goods (work and services) are used for the purposes of applying the comparable market price method in accordance with parts twelve and thirteen of Article 186 of this Code, the lowest and highest values of the market price range may be taken to be the published lowest and highest values for such goods (services). In this respect, the prices in transactions concluded over an equivalent period of time under comparable conditions must be taken into account. Where the price used in a controlled transaction is within the market price range determined in accordance with the provisions of this Article, that price must be deemed to conform to the market price for taxation purposes. Where the price used in a controlled transaction is less than the lowest value or exceeds the highest value of the market price range determined in accordance with the provisions of this Article, that price must not be deemed to conform to the market price. In the event of the specified discrepancy, the price which is assumed equal to the average value of the market price range must be taken for taxation purposes. The average value of the market price range must be taken for taxation purposes in accordance with part nine of this Article provided that this does not cause the amount of tax payable to the budget system to be reduced or the amount of losses to be increased.

Article 190. Cost Plus Method

The cost plus method provides for determining whether the price of a controlled transaction is consistent with market prices by comparing the gross return on costs of the person that is a party to the controlled transaction (or group of homogeneous controlled transactions) with the market range of gross return on costs in comparable transactions, determined in accordance with the procedure laid down in Article 187 of this Code.

The cost plus method may be applied, in particular, in the following cases:

1. where services are rendered by persons interconnected with the seller (except where the rendering of services involves intangible assets that materially influence the seller's level of return on costs);

2. where services involving the management of monetary resources are rendered, including the performance of trading operations on the securities market and/or currency market;

3. where services involving the performance of the functions of the sole executive body of a legal entity are rendered;

4. where raw materials or semi-finished products are sold to persons interconnected with the seller;

5. where goods (services) are sold under long-term agreements between interconnected persons.

If the gross return on costs of the seller that is a party to a controlled transaction falls within the profitability range determined in accordance with the procedure laid down in Article 187 of this Code, the price of the controlled transaction is treated as consistent with market prices for tax purposes.

If the gross return on costs of the seller that is a party to a controlled transaction is less than the minimum value of the profitability range or greater than its maximum value, the price of the controlled transaction is determined for tax purposes on the basis of the actual cost of production of goods (services) sold and the gross return on costs corresponding to the average value of the profitability range.

When applying the cost plus method, data from price information agencies on prices (price ranges) for identical (similar) goods (services) may be used, and the market price range for identical (similar) goods (services) may be determined in the manner prescribed by part seven of Article 188 of this Code.

Application of the average value of the profitability range for tax purposes in accordance with part four of this Article is permitted only on the condition that such application does not result in a reduction of the amount of tax payable to the budget system or an increase in the amount of the taxpayer's losses.

Article 193. Preparation and Presentation of Information for Tax Control Purposes in Transfer Pricing

Upon the request of the State Tax Committee of the Republic of Uzbekistan, a taxpayer must present documentation regarding a particular transaction (group of homogeneous transactions) indicated in the request. Documentation must be understood to mean a set of documents or a single document prepared in arbitrary form (unless the legislation of the Republic of Uzbekistan prescribes a set form for the preparation of such documents). The documentation provided for in the first part of this Article must contain information on the activities of the taxpayer (other persons) who concluded a controlled transaction (group of homogeneous transactions) related to that transaction:

1. a list of persons (indicating the states and territories of which they are tax residents) with whom the controlled transaction was concluded, a description of the controlled transaction and the conditions thereof, including a description of pricing methods (if any) and the conditions and timing of payments in respect of that transaction and other information on the transaction;
2. information concerning the functions of the persons who are parties to the transaction (where the taxpayer carries out a functional analysis), concerning assets used by them in connection with the controlled transaction and concerning the economic (commercial) risks assumed by them which the taxpayer took into consideration when concluding the transaction. Where the taxpayer has used the methods provided for in Chapter 23 of this Code, the documentation must include the following information on the methods used:
3. an explanation of the reasons for the choice of method used and the manner in which it was applied;
4. an indication of information sources used;
5. a computation of the market price range (profit margin range) for the controlled transaction with a description of the approach used to the selection of comparable transactions;
6. the amount of income (profit) received and (or) the amount of expenses (losses) incurred as a result of the controlled transaction, and the profit margin obtained;
7. information on the economic gain received from the controlled transaction by a person who concluded that transaction as a result of the acquisition of information, results of intellectual activity, rights in symbols which distinguish an enterprise and its products, its products and services (company name, trademarks, service marks) and other exclusive rights (where applicable);
8. information on other factors which influenced the price (profit margin) used in a controlled transaction, including information on the market strategy of the person who concluded the controlled transaction if that market strategy influenced the price (profit margin) used in the controlled transaction;
9. adjustments which the taxpayer made to the tax base and amounts of tax in accordance with part one of Article 177 of this Code. A taxpayer is entitled to provide other information which serves to demonstrate that the commercial and (or) financial conditions of controlled transactions are consistent with those which applied in comparable transactions with account taken of adjustments made to ensure the comparability of the commercial and (or) financial conditions of comparable transactions in which the parties are independent parties with the conditions of a controlled transaction. The documentation which is referred to in part one of this Article may be requested from a taxpayer by the State Tax Committee of the Republic of Uzbekistan not earlier than 1 June of the year following the calendar year in which controlled transactions were concluded. The provisions of parts one through four of this Article must not apply in the following cases:
10. where prices are used in transactions in accordance with instructions of anti-monopoly bodies in accordance with paragraph 3 of part one of Article 178 of this Code, or the price is regulated and is applied in accordance with part three of Article 179 of this Code;
11. in the case of transaction is not controlled;
12. in the case of transactions involving securities and financial instruments of forward transactions which are circulated on the organized securities market;
13. in the case of transactions in relation to which a pricing agreement for taxation purposes has been concluded in accordance with Chapter 25 of this Code. A taxpayer is entitled to present the above-mentioned documentation in relation to transactions such as are referred to in part six of this Article on a voluntary basis. The level of detail and comprehensiveness of documentation presented to the tax authorities must be consistent with the complexity of a transaction and the manner in which the transaction price is determined (the profit margin of the parties to the transaction).

Article 194. Tax Control over Transfer Pricing

An audit of the completeness of tax calculation and payment in connection with controlled transactions, conducted as part of tax control over transfer pricing (in this Chapter, an "audit"), is conducted by the State Tax Committee of the Republic of Uzbekistan at its location.

The audit is conducted on the basis of a controlled-transaction notice or a notification from a territorial tax authority sent in accordance with Article 182 of this Code, or upon identification of a controlled transaction as a result of a tax audit.

When conducting audits, the State Tax Committee of the Republic of Uzbekistan has the right to conduct the tax-control measures established by Articles 150 through 152 of this Code.

Control of whether prices in controlled transactions conform to market prices may not be the subject of tax control conducted by territorial tax authorities or the Interregional State Tax Inspectorate for Large Taxpayers.

The State Tax Committee of the Republic of Uzbekistan may not conduct two or more audits of the same controlled transaction or group of homogeneous transactions for the same calendar year, unless otherwise provided by this Article.

A repeated audit by the State Tax Committee of the Republic of Uzbekistan of the same controlled transaction or group of homogeneous transactions is permitted where:

1. the taxpayer submits, in accordance with Article 177 of this Code, amended tax reporting showing a lower tax amount or a higher loss amount than was previously reported in the tax reporting;

2. information concerning a controlled transaction previously submitted by the taxpayer is found to be inaccurate.

An audit may examine controlled transactions entered into during a period not exceeding the three calendar years preceding the year in which the decision to conduct the audit was issued.

[Part seven of Article 194 as amended by Law of the Republic of Uzbekistan No. ZRU-891 of December 28, 2023; National Database of Legislation, December 29, 2023, No. 03/23/891/0989; effective January 1, 2024.]

An audit of a transaction entered into by a taxpayer does not preclude tax audits of that taxpayer or tax monitoring for the same tax period in which the transaction was entered into.

Materials and information obtained by the State Tax Committee of the Republic of Uzbekistan during tax-control measures relating to transfer pricing may be used when auditing other persons that are parties to the controlled transaction under audit.

Article 195. Procedure for Conducting Tax Control over Transfer Pricing

An audit is conducted by officials of the State Tax Committee of the Republic of Uzbekistan on the basis of a decision by its head or deputy head to conduct the audit.

A decision to conduct an audit may be issued no later than three years after receipt of the notice or notification specified in parts one and two of Article 182 of this Code, unless otherwise provided by this Article.

[Part two of Article 195 as amended by Law of the Republic of Uzbekistan No. ZRU-891 of December 28, 2023; National Database of Legislation, December 29, 2023, No. 03/23/891/0989; effective January 1, 2024.]

The State Tax Committee of the Republic of Uzbekistan notifies the taxpayer of the decision within three days after its adoption.

If the taxpayer submits amended tax reporting under Article 177 of this Code showing a lower tax amount or a higher loss amount than was previously reported, a decision to conduct an audit may be issued no later than three years after submission of the amended tax reporting. The audit is limited to the controlled transaction in respect of which the adjustment was made.

[Part four of Article 195 as amended by Law of the Republic of Uzbekistan No. ZRU-891 of December 28, 2023; National Database of Legislation, December 29, 2023, No. 03/23/891/0989; effective January 1, 2024.]

An audit is conducted within a period not exceeding six months.

The audit period runs from the date the decision to conduct the audit is issued through the date the audit certificate is drawn up.

In exceptional cases, the audit period may be extended to twelve months by decision of the head or deputy head of the State Tax Committee of the Republic of Uzbekistan.

The Cabinet of Ministers of the Republic of Uzbekistan establishes the grounds and procedure for extending an audit period.

[Part eight of Article 195 as amended by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021; National Database of Legislation, December 30, 2021, No. 03/21/741/1219.]

If it is necessary to obtain information from foreign state bodies, conduct expert examinations, and (or) translate into Uzbek or Russian documents submitted by the taxpayer in a foreign language, the audit period may be extended by an additional period not exceeding six months.

If an audit was extended to obtain information from foreign state bodies and the State Tax Committee of the Republic of Uzbekistan was unable to obtain the requested information within six months, the extension may be increased by a further three months.

A copy of the decision extending the audit period is sent to the taxpayer within three days after the decision is adopted.

If, in determining whether the commercial and (or) financial conditions of controlled transactions are comparable with those of comparable transactions between independent persons, the taxpayer applied a method specified in Chapter 23 of this Code or a combination of such methods, the State Tax Committee of the Republic of Uzbekistan applies the same method or combination during the audit.

A different method or combination may be applied only if the State Tax Committee of the Republic of Uzbekistan proves that, having regard to the conditions of the controlled transaction, the method or combination applied by the taxpayer does not permit a substantiated conclusion as to whether the commercial and (or) financial conditions of the controlled transaction are comparable with those of comparable transactions between independent persons.

The State Tax Committee of the Republic of Uzbekistan may not apply during an audit any method not provided by Chapter 23 of this Code.

In the manner provided by Article 146 of this Code, the State Tax Committee of the Republic of Uzbekistan has the right to send the taxpayer a demand for the documentation provided by Article 193 of this Code concerning the transaction or group of homogeneous transactions under audit.

The taxpayer must submit the requested documentation within thirty calendar days after receiving the relevant demand.

An official of the State Tax Committee of the Republic of Uzbekistan conducting an audit has the right to demand documents or information from parties to the transactions under audit that possess documents or information concerning those transactions. Such documents or information are demanded under a procedure analogous to that established by Article 147 of this Code.

On the final day of the audit, the auditor must draw up an audit certificate recording the subject matter and duration of the audit.

The audit certificate is delivered against acknowledgment to the person audited or that person's representative, or transmitted by another means evidencing the date of receipt.

If the taxpayer or its representative evades receipt of the audit certificate, the certificate is sent to the taxpayer by registered mail.

If an audit certificate is sent by registered mail, it is deemed delivered on the fifth day after the mailing date.

If the audit identifies deviations of the controlled-transaction price from market prices that resulted in understatement of tax or overstatement of a loss, the authorized officials that conducted the audit must draw up an audit report in the prescribed form within two months after the audit certificate was drawn up.

The audit report is signed by the officials that conducted the audit and the person audited or that person's representative.

If the person audited or that person's representative refuses to sign the audit report, an appropriate entry is made in the report.

The audit report is drawn up subject to the requirements provided by part five of Article 156 of this Code.

The audit report must also contain documentary proof that the controlled-transaction price fell outside the arm's-length range, substantiation that this circumstance resulted in understatement of tax or overstatement of a loss, and a calculation of that understatement or overstatement.

Within five days after it is drawn up, the audit report must be delivered against acknowledgment to the person audited or that person's representative, or transmitted by another means evidencing the date of receipt.

If the person audited or that person's representative evades receipt of the audit report, that fact is recorded in the report and the report is sent by registered mail to the legal entity's location or the individual's place of residence.

If an audit report is sent by registered mail, it is deemed received on the fifth day after the mailing date.

If the person audited or that person's representative disagrees with the facts stated in the audit report and (or) the auditors' conclusions and proposals, that person has the right to submit written objections to the State Tax Committee of the Republic of Uzbekistan concerning the report as a whole or particular provisions of it.

The person also has the right to attach to the written objections, or submit to the State Tax Committee of the Republic of Uzbekistan within an agreed period, documents or certified copies substantiating the objections.

The objections must be submitted within twenty calendar days after receipt of the tax audit report.

The report, other audit materials, and written objections submitted by the taxpayer are considered, and a decision based on the audit results is adopted, under a procedure analogous to that for considering materials and adopting a decision based on a tax audit under Articles 158 through 160 of this Code.

Chapter 25. Advance Pricing Agreement for Tax Purposes

Article 197. Parties to a Pricing Agreement

The parties to a pricing agreement must be the taxpayer and the State Tax Committee of the Republic of Uzbekistan in the person of the director (deputy director) of that body, except as otherwise provided in part two of this Article. Where a pricing agreement is to be concluded in relation to a foreign trade transaction and at least one of the parties to that transaction is a tax resident of a foreign state, the taxpayer is entitled to file an application with the State Tax Committee of the Republic of Uzbekistan for such a pricing agreement to be concluded with the participation of the competent executive body of the relevant foreign state. Such an agreement with the participation of an authorized executive body of a foreign state must be possible provided that an agreement (treaty) has been concluded with this state on the avoidance of double taxation. The procedure for concluding such a pricing agreement must be established by the Cabinet of Ministers of the Republic of Uzbekistan. Where homogeneous controlled transactions are concluded between a number of interconnected legal entities of the Republic of Uzbekistan (group of legal entities), a multilateral pricing agreement may be concluded with those legal entities. In this respect, the conditions of that agreement must apply to the entire group of legal entities which concluded it. In the process of the conclusion of a pricing agreement, the amendment of the conditions and the performance of an inspection of the fulfilment of the conditions of a pricing agreement in accordance with the procedures established by Articles 199 and 200 of this Code respectively, the common interests of a group of legal entities may be represented by one legal entity from this group. The authority of this legal entity must be confirmed by powers of attorney issued in accordance with the procedure established by the legislation. A taxpayer who has concluded a pricing agreement is entitled to notify persons with whom transactions are concluded of the conclusion of such an agreement and of the procedure established therein for the determination of the price to be used for taxation purposes.

Article 199. Procedure for Concluding an Advance Pricing Agreement

A taxpayer must attach the following to an application submitted to the State Tax Committee of the Republic of Uzbekistan for conclusion of an advance pricing agreement:

1. a draft advance pricing agreement;

2. documents concerning the taxpayer's activities connected with controlled transactions and the controlled transactions for which the taxpayer proposes to conclude the advance pricing agreement;

3. copies of the taxpayer's constituent documents;

[Item 4 of part one of Article 199 to be deleted with effect from January 1, 2023, by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145.]

5. a copy of the taxpayer's certificate of registration with the tax authority at its location in the territory of the Republic of Uzbekistan;

6. the taxpayer's financial reporting for the most recent reporting period;

7. other documents containing information material to conclusion of the advance pricing agreement.

The documents listed in part one of this Article are submitted to the State Tax Committee of the Republic of Uzbekistan in any form, unless otherwise established by legislation.

The State Tax Committee of the Republic of Uzbekistan has the right to request from the taxpayer documents not provided by part one of this Article that are necessary for purposes of the advance pricing agreement.

The State Tax Committee of the Republic of Uzbekistan considers the application and other documents submitted by the taxpayer under parts one through three of this Article within six months after receipt. That period may be extended to nine months.

The Cabinet of Ministers of the Republic of Uzbekistan establishes the grounds and procedure for extending the period for considering documents submitted by the taxpayer.

[Part five of Article 199 as amended by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021; National Database of Legislation, December 30, 2021, No. 03/21/741/1219.]

After considering the documents submitted under parts one through three of this Article, the State Tax Committee of the Republic of Uzbekistan adopts one of the following decisions:

1. a decision to conclude the advance pricing agreement;

2. a reasoned decision refusing to conclude the advance pricing agreement;

3. a decision that the draft advance pricing agreement requires revision.

The relevant decision is sent to the taxpayer or its representative within five days after adoption.

A decision to conclude an advance pricing agreement states the place, date, and time for signing the agreement.

The State Tax Committee of the Republic of Uzbekistan decides a resubmitted draft agreement within three months.

Grounds for refusing to conclude an advance pricing agreement include, in particular:

1. failure to submit, or incomplete submission of, the documents provided by part one of this Article;

2. a reasoned conclusion that application of the price-determination procedure and (or) pricing methods proposed in the draft agreement would not ensure that transaction prices conform to market prices.

Within three days after an advance pricing agreement is signed, the State Tax Committee of the Republic of Uzbekistan sends a copy to the tax authority at the taxpayer's place of registration.

The taxpayer may withdraw an application for conclusion of an advance pricing agreement submitted to the State Tax Committee of the Republic of Uzbekistan.

An advance pricing agreement may be amended in the manner provided by this Article.

Article 213. Circumstances Precluding Liability

A person may not be held liable for the commission of a tax offense if at least one of the following circumstances is present:

1. the absence of a tax offense event;

2. the absence of fault on the part of the person in committing the tax offense;

3. the expiry of the limitation period for holding a person liable for the commission of a tax offense.

A person may not be held liable for the commission of a tax offense where other circumstances provided for by this Code are also present.

Article 217. Limitation Period for Imposition of Liability

A person may not be held liable for a tax offense if three years, constituting the limitation period, have elapsed between the date the offense was committed, or the day following the end of the tax period during which it was committed, and the date the decision imposing liability is issued.

[Part one of Article 217 as amended by Law of the Republic of Uzbekistan No. ZRU-891 of December 28, 2023; National Database of Legislation, December 29, 2023, No. 03/23/891/0989; effective January 1, 2024.]

The limitation period is calculated from the date the tax offense was committed for all tax offenses other than those provided by Articles 223 and 224 of this Code.

For tax offenses provided by Articles 223 and 224 of this Code, the limitation period is calculated from the day following the end of the relevant tax period.

The limitation period for imposition of liability is suspended if the person subject to liability for a tax offense actively obstructed a tax audit, creating an insurmountable obstacle to its conduct and to the tax authorities' determination of the amounts of tax payable to the budget system.

The limitation period for imposition of liability is deemed suspended from the date the report provided by part three of Article 144 of this Code is drawn up. In that case, the period resumes on the date the circumstances obstructing the field tax audit cease and a decision to resume the audit is issued.

Article 219. Violation of the Procedure for Registration with a Tax Authority

Violation by a taxpayer of the established procedure for registration with the tax authorities as a value-added tax taxpayer–

entails the imposition of a fine in the amount of five percent of the income received for the period from the date of registration provided for by tax legislation to the date of actual registration, but not less than five million soums.

The provisions of part one of this Article do not apply from January 1, 2026, to taxpayers who have for the first time transitioned from payment of turnover tax to payment of value-added tax and profit tax, in the event of their registration within one year from the moment the obligation to register as a value-added tax taxpayer arises.

Violation of the time limits for registration with the tax authorities for taxable objects in the cases provided for in Article 131 of this Code, if from the established registration time limit:

no more than thirty days have passed–entails the imposition of a fine of one million soums;

more than thirty days have passed–entails the imposition of a fine of two million soums.

A foreign legal entity's conducting of activities leading to the formation of a permanent establishment on the territory of the Republic of Uzbekistan, without registering with a tax authority–

entails the imposition of a fine in the amount of ten percent of the income received from the date of commencement of such activities to the date of actual registration, but not less than ten million soums.

An individual's conducting of entrepreneurial activity without state registration as an individual entrepreneur–

entails the imposition of a fine in the amount of ten percent of income received from such activity, but not less than one million soums.

Article 220. Failure to File Tax Reporting

An official of a taxpayer that is a legal entity, or an individual taxpayer, is subject to administrative liability for late filing of tax reporting.

Article 221. Violation of the Procedure for the Use of Cash Registers, Payment Terminals, Electronic Payment Systems, and Special QR Codes Generated on Digital Platforms of Payment Organizations

Conducting trade and providing services without using cash registers, payment terminals, electronic payment systems, and/or special QR codes generated on digital platforms of payment organizations, where their use is mandatory, as well as selling goods and providing services without issuing to the buyer receipts, coupons, checks, or other equivalent documents, where issuing or handing out such documents is mandatory, as well as refusing to accept payments through payment terminals, electronic payment systems, and/or special QR codes generated on digital platforms of payment organizations–

entails the imposition of a fine of five million soums.

Conducting trade and/or providing services using cash registers, or issuing to the buyer receipts, coupons, checks, or other equivalent documents, that are not registered with the tax authorities–

entails the imposition of a fine of seven million soums.

Use by a taxpayer of payment terminals registered for other persons, or special QR codes belonging to other registered taxpayers from the digital platforms of payment organizations–

entails the imposition of a fine of twenty million soums.

Use of cash registers that do not meet technical requirements, or in violation of the electronic service program–

entails the imposition of a fine of twenty million soums.

Article 223. Concealment (Understatement) of the Tax Base

Concealment (understatement) of the tax base entails imposition of a fine in the amount of twenty percent of the amount of the concealed (understated) tax base.

Taxes are assessed on the amount of the concealed (understated) tax base in accordance with this Code.

For the purposes of this Article, concealment (understatement) of the tax base means:

– failure to record in accounting registers the amount of income from the sale of goods (services);

– transportation of goods without cargo-accompanying documents or under false documents;

– absence from a warehouse or from the place of sale of goods recorded as unsold;

– storage, use, and sale of unregistered (unposted) goods;

– substitution, forgery, or destruction of documents evidencing the fact of sale of goods (services);

– use of false primary accounting documents;

– unlawful modification of the software for servicing the fiscal memory of cash-register equipment;

– inclusion in production reporting of unused material costs as used;

– carrying forward of proceeds from the sale of goods (services) to the period following the reporting period (deliberate understatement of the volume of sales and income (profit));

– artificial overstatement (of limits) of expenditure of material, fuel and energy resources and depreciation (wear) rates, or incorrect application of standards;

– failure to record in tax reporting the actual amount of wages of employees who are in an employment relationship with the employer;

– failure to record in tax reporting employees engaged in employment activities;

– recording in accounting documents the value of goods sold at prices lower than their actual sale price;

– incomplete recording in tax reporting of the volume of extracted minerals.

The amount of the concealed tax base for tax violations specified in the thirteenth and fourteenth paragraphs of part three of this Article is determined for the last twelve months preceding the date of commencement of the tax audit.

Recording in invoices or receipts of cash-register equipment identification codes that do not correspond to the nomenclature of goods (services) acquired, or to the characteristics and types of activities performed, entails imposition of a fine in the amount of one percent of the value of goods (services) sold, as stated in invoices or receipts of cash-register equipment.

Article 227.1. Violation of Statutory Requirements or Procedures for Displaying Fiscal Marks, Installing Automated Measuring and Recording Equipment, Ensuring Integration with Tax-Authority Information Systems, or Complying with Mandatory Digital Identification Marking Rules for Goods or Products

Violation of statutory requirements or procedures for displaying fiscal marks, installing automated measuring and recording equipment, or ensuring integration with tax-authority information systems, or violation by manufacturers, importers, or sellers of the rules governing mandatory digital marking of goods or products by means of identification,

results in a fine equal to two percent of net revenue received in the most recent reporting quarter in which a sale occurred.

The same offense, if committed again within one year after imposition of the fine,

results in a fine equal to twenty percent of net revenue received in the most recent reporting quarter in which a sale occurred.

[Text of Article 227.1 as amended by Law of the Republic of Uzbekistan No. ZRU-927 of May 29, 2024; National Database of Legislation, May 30, 2024, No. 03/24/927/0379.]

Chapter 29. Liability of Banks for Violations of Tax Legislation

Article 230. Right of Appeal

Every person is entitled to appeal against acts of tax authorities of a non-normative nature and the actions or inaction of their officials if, in the opinion of that person, such acts, actions or inaction violate his rights. An act of a tax authority of a non-normative nature must be understood to be a document which is drawn up in accordance with tax legislation or state departmental normative regulations, which contain an order of a tax authorities to perform certain legally significant actions that is addressed to one or more individuals or legal entities. Appeals against normative legal acts of tax authorities may be made in accordance with the procedure prescribed by legislation. In the event of the rescinding by a higher tax authority or court of a decision of a tax authority which has been adopted as a result of a field tax audit or tax audit, the recovered (paid) amounts of taxes and financial sanctions with respect to this decision must be refunded (credited), with account taken of interest which are calculated on the basis of the refinancing rate of the Central Bank of the Republic of Uzbekistan, which was in effect in the period when these amounts were recovered (paid).

Article 231. Complaint Procedure

Decisions of tax authorities and actions or omissions of their officials may be challenged before a higher tax authority or a court in the manner established by legislation.

[Part one of Article 231 as amended by Law of the Republic of Uzbekistan No. ZRU-910 of February 20, 2024; National Database of Legislation, February 21, 2024, No. 03/24/910/0140.]

A complaint is a submission by a person to a tax authority or court challenging non-normative acts of a tax authority that have or have not entered into force, or actions or omissions of its officials, where the person believes that those acts, actions, or omissions violate its rights.

[Part two of Article 231 as amended by Law of the Republic of Uzbekistan No. ZRU-910 of February 20, 2024; National Database of Legislation, February 21, 2024, No. 03/24/910/0140.]

Filing a complaint with a higher tax authority or court suspends enforcement of the challenged decision or action, including recovery of additionally assessed taxes and levies and application of financial sanctions, until the higher tax authority decides the complaint or the court decision enters into legal force, respectively. The taxpayer must notify the tax authority whose decision or whose official's action or omission is challenged that the complaint has been filed with a higher tax authority or court, and must attach the relevant supporting documents.

[Part four of Article 231 deleted by Law of the Republic of Uzbekistan No. ZRU-910 of February 20, 2024; National Database of Legislation, February 21, 2024, No. 03/24/910/0140.]

[Part five of Article 231 deleted by Law of the Republic of Uzbekistan No. ZRU-910 of February 20, 2024; National Database of Legislation, February 21, 2024, No. 03/24/910/0140.]

[Part six of Article 231 deleted by Law of the Republic of Uzbekistan No. ZRU-910 of February 20, 2024; National Database of Legislation, February 21, 2024, No. 03/24/910/0140.]

Non-normative acts adopted following consideration of complaints by state tax inspectorates of districts or cities or by state tax departments of the Republic of Karakalpakstan, the regions, or the city of Tashkent may also be challenged before the State Tax Committee of the Republic of Uzbekistan.

[Part four of Article 231 as amended by Law of the Republic of Uzbekistan No. ZRU-910 of February 20, 2024; National Database of Legislation, February 21, 2024, No. 03/24/910/0140.]

Non-normative acts of the State Tax Committee of the Republic of Uzbekistan and actions or omissions of its officials are challenged in court.

Before a decision is adopted, a person that filed a complaint with a higher tax authority may withdraw it in whole or in part by sending a written application to the tax authority considering it.

[Part six of Article 231 as amended by Law of the Republic of Uzbekistan No. ZRU-910 of February 20, 2024; National Database of Legislation, February 21, 2024, No. 03/24/910/0140.]

Withdrawal of a complaint from a higher tax authority deprives the person that filed it of the right to file another complaint on the same grounds.

[Part seven of Article 231 as amended by Law of the Republic of Uzbekistan No. ZRU-910 of February 20, 2024; National Database of Legislation, February 21, 2024, No. 03/24/910/0140.]

Legal entities and individuals challenge acts, including normative acts, of tax authorities and actions or omissions of their officials in court in the manner established by the legislation of the Republic of Uzbekistan.

[Part eight of Article 231 as amended by Law of the Republic of Uzbekistan No. ZRU-910 of February 20, 2024; National Database of Legislation, February 21, 2024, No. 03/24/910/0140.]

Article 232. Procedure and Time Limits for Filing with a Higher Tax Authority a Complaint against Tax-Authority Decisions Adopted as a Result of Tax Audits

[Heading of Article 232 as amended by Law of the Republic of Uzbekistan No. ZRU-910 of February 20, 2024; National Database of Legislation, February 21, 2024, No. 03/24/910/0140.]

A complaint against tax-authority decisions adopted as a result of field tax audits and tax audits is filed with a higher tax authority through the tax authority whose decisions are challenged.

Within three days after receiving such a complaint, the tax authority whose decisions are challenged must transmit it and all materials to the higher tax authority.

A complaint to a higher tax authority against tax-authority decisions adopted as a result of field tax audits and tax audits may be filed within one month after the date on which the person learned or should have learned that its rights were violated.

If the time limit specified in part three of this Article was missed for good cause, the higher tax authority may reinstate it on application of the person filing the complaint.

Article 233. Form and Content of a Complaint Filed with a Higher Tax Authority

[Heading of Article 233 as amended by Law of the Republic of Uzbekistan No. ZRU-910 of February 20, 2024; National Database of Legislation, February 21, 2024, No. 03/24/910/0140.]

A complaint and the documents attached to it may be sent to the tax authority in written or electronic form.

A complaint is signed by the person filing it or that person's representative.

A complaint must state:

1. the surname, given name, patronymic, and place of residence of an individual filing the complaint, or the name and address of a legal entity filing it;

2. the non-normative act of the tax authority, or the actions or omissions of its officials, being challenged;

3. the name of the tax authority whose non-normative act or whose officials' actions or omissions are being challenged;

4. the grounds on which the person filing the complaint considers its rights to have been violated;

5. the relief sought by the person filing the complaint.

A complaint may state telephone numbers, email addresses, and other information necessary for its timely consideration.

If an authorized representative of a person challenging a non-normative act of a tax authority or actions or omissions of its officials files the complaint, documents confirming the representative's authority must be attached.

Documents supporting the arguments of the person filing the complaint may be attached to it.

Article 234. Dismissal of a Complaint without Consideration by a Higher Tax Authority

[Heading of Article 234 as amended by Law of the Republic of Uzbekistan No. ZRU-910 of February 20, 2024; National Database of Legislation, February 21, 2024, No. 03/24/910/0140.]

A higher tax authority dismisses a complaint in whole or in part without consideration if it finds that:

the complaint is not signed by the person that filed it or that person's representative, or duly executed documents confirming the representative's authority to sign it were not submitted;

the complaint was filed after the time limit established by this Code expired and contains no application to reinstate the period, or reinstatement of the missed period was refused;

before a decision on the complaint was adopted, the person that filed it submitted an application to withdraw it in whole or in part;

a complaint was previously filed on the same grounds;

the complaint challenges a tax-authority decision that was previously challenged in the established manner under this Code;

the complaint was filed in violation of the procedure established by Article 232 of this Code;

the complaint was not prepared in accordance with Article 233 of this Code;

the complaint was filed within instituted criminal proceedings or the taxpayer applied to a court concerning the subject matter of the complaint.

The tax authority considering the complaint adopts a decision to dismiss it in whole or in part without consideration within five days after receiving the complaint or an application to withdraw it in whole or in part.

The person that filed the complaint is notified in writing of the decision within three days after it is adopted.

Dismissal of a complaint without consideration does not prevent the person from filing it again within the time limits established by this Code, except where the complaint was dismissed on a ground specified in the fourth or fifth textual paragraph of part one of this Article.

Article 235. Consideration of a Complaint by a Higher Tax Authority

[Heading of Article 235 as amended by Law of the Republic of Uzbekistan No. ZRU-910 of February 20, 2024; National Database of Legislation, February 21, 2024, No. 03/24/910/0140.]

During consideration of a complaint and before a decision is adopted, the person that filed it has the right to submit additional documents supporting its arguments.

The higher tax authority considers the complaint, documents supporting the arguments of the person that filed it, additional documents submitted while the complaint is being considered, and materials submitted by the lower tax authority.

On its own initiative or on application of the person making the submission, the tax authority considering the complaint may arrange a hearing for that person.

Following consideration of a complaint, the higher tax authority adopts one of the following decisions:

dismisses the complaint;

revokes the non-normative act of the tax authority;

revokes the tax-authority decision in whole or in part;

revokes the tax-authority decision in full and adopts a new decision in the case;

declares actions or omissions of tax-authority officials unlawful and adopts a decision on the merits.

If the person that filed the complaint explains why additional documents could not be submitted on time to the tax authority whose decision is challenged, the higher tax authority considers those additional documents if they were submitted during consideration of the complaint and before a decision on it was adopted. This rule applies when decisions adopted under Article 159 or 166 of this Code are challenged.

A higher tax authority has the right to revoke a decision adopted under Article 159 or 166 of this Code if consideration of the complaint identifies a breach of material procedural requirements governing consideration of tax-audit materials.

After revoking the decision, the higher tax authority considers the materials, documents supporting the arguments of the person that filed the complaint, additional documents submitted during consideration of the complaint, and materials submitted by the lower tax authority under the procedure provided by Article 159 or 166 of this Code, as applicable, and adopts a decision provided by part four of this Article.

A higher tax authority decides a complaint against a decision adopted under Article 159 of this Code imposing liability for a tax offense and (or) additionally assessing taxes as a result of a tax audit within one month after receiving the complaint. The head or deputy head of the tax authority may extend that period to obtain from lower tax authorities documents or information necessary to consider the complaint, or if the person filing the complaint submits additional documents, but by no more than fifteen days.

The tax authority decides a complaint not specified in part eight of this Article within fifteen days after receiving it. The head or deputy head of the tax authority may extend that period to obtain from lower tax authorities documents or information necessary to consider the complaint, or if the person filing the complaint submits additional documents, but by no more than fifteen days.

A decision of the head or deputy head of the tax authority extending the period for consideration of a complaint is delivered or sent to the person that filed it within three days after adoption.

The tax authority's decision following consideration of a complaint is delivered or sent to the person that filed it within three days after adoption.

Article 237. Taxpayers

The following persons that sell goods or services and (or) conduct business activities in the Republic of Uzbekistan are recognized as value-added tax payers (in this Section, "taxpayers"):

1. legal entities of the Republic of Uzbekistan;

2. individual entrepreneurs whose income from the sale of goods or services during a tax period exceeds one billion soums, or that voluntarily elected to pay value-added tax;

3. foreign legal entities, and individuals registered as entrepreneurs under the legislation of a foreign state, that conduct business activities and sell goods or services in the territory of the Republic of Uzbekistan, if the place of sale of those goods or services is recognized as the Republic of Uzbekistan;

[Item 3 of part one of Article 237 as amended by Law of the Republic of Uzbekistan No. ZRU-891 of December 28, 2023; National Database of Legislation, December 29, 2023, No. 03/23/891/0989; effective January 1, 2024.]

4. foreign legal entities conducting activities in the Republic of Uzbekistan through permanent establishments;

5. the authorized representative of a party to a simple-partnership agreement that is charged with conducting the affairs of the simple partnership, in respect of activities conducted under the simple-partnership or joint-activity agreement;

6. persons moving goods across the customs border of the Republic of Uzbekistan. Those persons are recognized as taxpayers in accordance with customs legislation.

In the cases and manner established by this Section, value-added tax obligations are performed by tax agents.

Except in the case provided by item 6 of part one of this Article, the following are not taxpayers:

1. state government and administrative bodies, when performing their assigned functions. Such bodies may, however, be recognized as value-added tax payers by decision of the President of the Republic of Uzbekistan or the Cabinet of Ministers of the Republic of Uzbekistan;

[Item 1 of part three of Article 237 as amended by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

2. persons paying turnover tax.

Taxpayers must be entered by the tax authorities in the special register of value-added tax payers; value-added tax is referred to in this Section as "the tax."

[Part four of Article 237 as amended by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

The Cabinet of Ministers of the Republic of Uzbekistan determines the procedure for:

issuing a certificate of entry in the special register maintained by the tax authorities as a taxpayer (in this Section, a "certificate");

suspending, resuming, terminating, or annulling a certificate;

challenging a tax-authority decision relating to the late issuance of or refusal to issue a certificate, the suspension, termination, or annulment of a certificate, or its late resumption;

removal from the special register as a taxpayer.

[Article 237 supplemented with part five by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

Article 243. Turnover from the Sale of Goods or Services Exempt from Taxation

Unless otherwise provided by Article 260 of this Code, turnover from the sale of the following is exempt from taxation:

1. services for the care of children in preschool educational organizations;

[Item 1 of part one of Article 243 as amended by Law of the Republic of Uzbekistan No. ZRU-653 of December 3, 2020; National Database of Legislation, December 4, 2020, No. 03/20/653/1592.]

2. services for the care of sick and elderly persons;

3. funeral services provided by funeral homes and cemeteries, religious articles, and services provided by religious organizations and associations for rites and ceremonies;

4. prosthetic and orthopedic products and equipment for persons with disabilities, including products and equipment sold by their manufacturers, and services provided to persons with disabilities for orthopedic prosthetics and for the repair and maintenance of prosthetic and orthopedic products and equipment for persons with disabilities;

[Item 4 of part one of Article 243 as amended by Law of the Republic of Uzbekistan No. ZRU-770 of May 17, 2022; National Database of Legislation, May 18, 2022, No. 03/22/770/0424.]

5. products of therapeutic production workshops attached to medical institutions and sold by those institutions;

6. self-produced goods and services sold by legal entities whose sole members are public associations of persons with disabilities, in which persons with disabilities constitute at least 50 percent of the total workforce and the payroll of persons with disabilities constitutes at least 50 percent of total payroll;

[Item 7 of part one of Article 243 to be deleted with effect from April 1, 2023, by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145.]

8. services for the payment of pensions and benefits;

[Item 9 of part one of Article 243 to be deleted with effect from April 1, 2023, by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145.]

10. teaching and education services, including the organization and conduct of tests and examinations, in particular:

educational services in primary, secondary, specialized secondary, vocational, higher, and postgraduate education;

[The second textual paragraph of item 10 of part one of Article 243 as amended by Law of the Republic of Uzbekistan No. ZRU-957 of September 7, 2024; National Database of Legislation, September 9, 2024, No. 03/24/957/0689.]

supplementary education services provided by educational institutions or organizations, and by organizations retraining and providing advanced training for personnel;

child supervision and care services in organizations conducting educational and developmental activities under preschool education and development programs, and classes for minor children in clubs, sections, including sports sections, and studios;

[Item 11 of part one of Article 243 to be deleted with effect from April 1, 2024, by Law of the Republic of Uzbekistan No. ZRU-891 of December 28, 2023; National Database of Legislation, December 29, 2023, No. 03/23/891/0989.]

[Item 12 of part one of Article 243 to be deleted with effect from April 1, 2024, by Law of the Republic of Uzbekistan No. ZRU-891 of December 28, 2023; National Database of Legislation, December 29, 2023, No. 03/23/891/0989.]

[Item 13 of part one of Article 243 to be deleted with effect from April 1, 2024, by Law of the Republic of Uzbekistan No. ZRU-891 of December 28, 2023; National Database of Legislation, December 29, 2023, No. 03/23/891/0989.]

14. sanatorium and resort services, health-improvement services, and physical-education and sports services provided by budget-funded organizations. For purposes of this item:

[The first textual paragraph of item 14 of part one of Article 243 as amended by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021; National Database of Legislation, December 30, 2021, No. 03/21/741/1219.]

a) sanatorium, resort, and health-improvement services include services provided as part of the principal activities of sanatoriums, medical treatment facilities, preventive-care facilities, resorts, boarding houses, holiday homes and areas, children's holiday camps, and other recreational organizations, documented by stay or course-treatment vouchers, regardless of whether provided by legal entities or structural subdivisions of legal entities;

b) physical-education and sports services provided by budget-funded organizations include, in particular, physical-education and sports classes in training groups and sports teams at sports facilities, schools, and health-oriented clubs; general physical-fitness services; services for conducting sports competitions or festivals and sports-entertainment events; and rental of sports facilities for preparing and conducting those events;

[Subitem (b) of item 14 of part one of Article 243 as amended by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021; National Database of Legislation, December 30, 2021, No. 03/21/741/1219.]

[Deletion date for item 15 of part one of Article 243 under Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024: July 1, 2025; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067.]

16. services for the maintenance and repair of housing stock provided to the public. Housing-stock maintenance and repair services include services of elevator operators and of territorial administrations and departments of the Chamber of State Cadastres under the Cadastre Agency of the State Tax Committee of the Republic of Uzbekistan for the operation, maintenance, and repair of housing stock that are paid for directly by the public, including through homeowners' associations;

[Item 16 of part one of Article 243 as amended by Law of the Republic of Uzbekistan No. ZRU-708 of August 16, 2021; National Database of Legislation, August 17, 2021, No. 03/21/708/0799.]

16.1) services and work provided or performed by management organizations or managers of apartment buildings for the management, maintenance, and repair of common property and the improvement of land plots adjoining apartment buildings;

[Part one of Article 243 supplemented with item 16.1 by Law of the Republic of Uzbekistan No. ZRU-773 of May 31, 2022; National Database of Legislation, June 1, 2022, No. 03/22/773/0461.]

17. goods or services transferred or provided without consideration pursuant to a decision of the President of the Republic of Uzbekistan or the Cabinet of Ministers of the Republic of Uzbekistan;

18. bank and measured bullion bars of precious metals; bullion or investment coins of precious metals, other than numismatic coins and foreign coins of precious metals; scrap and waste generated in the production of precious metals; measured plates and granules of precious metals; and precious and semiprecious stones;

19. goods placed under the duty-free trade customs procedure;

20. services provided by citizens' self-government bodies and authorized bodies or organizations when granting legal entities and individuals specified rights for which a state fee or other payment is charged in the exercise of exclusive powers assigned to those bodies or organizations in a particular field, if legislation requires those services to be provided;

21. land-cadastral, land-management, soil, and geobotanical work financed from the budget;

[Item 22 of part one of Article 243 to be deleted with effect from April 1, 2023, by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145.]

23. goods or services acquired from loans of international financial institutions or international loans of governmental organizations, if their exemption is provided by law;

[Item 23 of part one of Article 243 as amended by Law of the Republic of Uzbekistan No. ZRU-659 of December 30, 2020; National Database of Legislation, December 31, 2020, No. 03/20/659/1681; effective January 1, 2021.]

[Item 24 of part one of Article 243 to be deleted with effect from July 1, 2023, by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145.]

25. technical equipment for systems used in operational-search measures on telecommunications networks, and services for its operation and maintenance;

26. goods or services transferred or provided as philanthropic support;

26.1) state property, including vacant nonagricultural land plots held under ownership rights;

[Part one of Article 243 supplemented with item 26.1 by Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067; effective January 1, 2025.]

27. financial services provided by Article 244 of this Code;

28. life-insurance services and other insurance services provided by Article 245 of this Code.

Turnover from the sale of goods or services listed in this Article is exempt from taxation if the taxpayer holds the relevant licenses and other permits for the activity, where legislation requires the activity to be licensed or otherwise permitted.

Taxpayers making taxable turnover and turnover exempt from taxation under this Article must maintain separate records of that turnover in accordance with Article 268 of this Code.

Article 244. Financial Services Exempt from Taxation

The following financial services are exempt from taxation:

1. banking operations, excluding services whose price is set at a fixed amount, including in particular:

• the attraction of monetary funds of legal entities and individuals into deposits;
• the placement of monetary funds of legal entities and individuals attracted on behalf of banks and at the expense of banks;
• the maintenance of bank accounts of legal entities and individuals, including bank accounts used for settlements by bank card, and operations connected with the servicing of bank cards;
• the carrying out of settlements on the instructions of legal entities and individuals, including correspondent banks, on their bank accounts;
• cash servicing of legal entities and individuals through bank cash desks or through special equipment (ATM, automatic deposit machines, and other such equipment);
• the purchase and sale of foreign currency in cash and noncash forms (including the rendering of intermediary services in respect of operations involving the purchase and sale of foreign currency);
• the execution of bank guarantees (payment under a bank guarantee);
• the provision of suretyships for third parties, providing for the performance of obligations in monetary form;
• settlements and payments under letters of credit;
• the carrying out of settlements (payments) using payment systems, programs, and equipment;

2. operations carried out by organizations that provide informational and technological interaction between participants in settlements, including the rendering of services involving the collection, processing, and provision to participants in settlements of information on operations carried out using bank cards;

3. the sale of participating interests in the charter fund (authorized capital) of legal entities, units in unit funds of cooperatives and unit investment funds, securities, and derivative financial instruments, excluding the sale of the underlying asset of derivative financial instruments that is subject to taxation. For the purposes of this Section, the sale of a derivative financial instrument is understood to mean the sale of its underlying asset, as well as payment of amounts of contract premiums, amounts of variation margin, and other periodic or one-time payments of the parties to the derivative financial instrument that do not represent payment for the underlying asset in accordance with the terms of the derivative financial instrument;

4. operations involving the assignment (transfer) of rights (claims) in respect of obligations arising on the basis of derivative financial instruments, the sale of which is exempt from taxation in accordance with paragraph 3 of this part;

5. forfaiting and factoring operations;

6. operations involving the assignment (transfer, acquisition) of the rights (claims) of the creditor in respect of obligations arising from agreements for the provision of loans in monetary form and/or credit agreements, as well as the performance by the borrower of obligations to each new creditor under the original agreement underlying the assignment agreement;

7. the provision of credits and loans in monetary form and in securities, including interest on them, as well as repo transactions, including amounts of money payable for the provision of securities under repo transactions;

8. services involving the provision of property under a finance lease (leasing), in the part consisting of interest income received thereunder;

9. operations with securities (shares, bonds, and other securities). Operations with securities include operations for the custody of securities, the recording of rights to securities, the transfer of securities and the maintenance of their registers, and the organization of trading in securities, excluding services for their production;

10. financial services of payment systems connected with the carrying out of transactions with the simultaneous distribution of commission remuneration among the participants in a payment.

The Ministry of Finance of the Republic of Uzbekistan, together with the State Tax Committee of the Republic of Uzbekistan, in agreement with the Central Bank of the Republic of Uzbekistan and the authorized body for the development of the securities market in the part concerning the development of the securities market, is entitled to provide explanations, including the detailing of individual turnovers, on the procedure for applying the provisions of this Article.

Article 246. Importation of Goods into the Territory of the Republic of Uzbekistan Exempt from Taxation

The importation into the territory of the Republic of Uzbekistan of the following is exempt from taxation:

1. goods imported by individuals within the duty-free import limits approved by customs legislation;

2. goods imported as humanitarian aid in the manner determined by the Cabinet of Ministers of the Republic of Uzbekistan;

3. goods imported for charitable assistance, including technical assistance or grants, through states, governments, international organizations, or other organizations and persons, in cases provided by decisions of the Cabinet of Ministers of the Republic of Uzbekistan;

[Item 3 of Article 246 as amended by Law of the Republic of Uzbekistan No. ZRU-659 of December 30, 2020; National Database of Legislation, December 31, 2020, No. 03/20/659/1681; effective January 1, 2021.]

4. goods intended for official use by foreign diplomatic and equivalent missions and for personal use by the diplomatic and administrative-technical personnel of those missions, including family members residing with them;

5. cultural property classified by legislation as especially valuable cultural-heritage objects and acquired by or donated to state cultural institutions. This exemption applies if confirmed by the Ministry of Culture of the Republic of Uzbekistan;

6. technological equipment, equivalents of which are not produced in the Republic of Uzbekistan, imported into the territory of the Republic of Uzbekistan under an approved list;

7. all types of printed publications received by state libraries and museums through international book exchanges, and cinematographic works imported by specialized state organizations for international noncommercial exchanges;

8. domestic and foreign currency and banknotes that are legal tender, other than items intended for collection, and securities;

9. goods imported using loans from international financial institutions or international loans from governmental organizations, if exemption upon importation is provided by law;

[Item 9 of Article 246 as amended by Law of the Republic of Uzbekistan No. ZRU-659 of December 30, 2020; National Database of Legislation, December 31, 2020, No. 03/20/659/1681; effective January 1, 2021.]

10. technical equipment for operational-search-measure systems acquired by telecommunications operators and the special body for certification of such equipment, if written confirmation from the specially authorized state body is available;

[Item 10 of Article 246 as amended by Law of the Republic of Uzbekistan No. ZRU-992 of November 5, 2024; National Database of Legislation, November 6, 2024, No. 03/24/992/0895.]

10.1) technical equipment for operational-search-measure systems acquired by the specially authorized state body.

[Article 246 supplemented with item 10.1 by Law of the Republic of Uzbekistan No. ZRU-992 of November 5, 2024; National Database of Legislation, November 6, 2024, No. 03/24/992/0895.]

[Item 11 of Article 246 to be deleted with effect from April 1, 2024, by Law of the Republic of Uzbekistan No. ZRU-891 of December 28, 2023; National Database of Legislation, December 29, 2023, No. 03/23/891/0989.]

Chapter 34. Tax Base

Article 248. Procedure for Determination of the Tax Base

Unless otherwise provided by this Article, the tax base is determined as the value of goods (services) being sold, based on the price (tariff) applied by the parties to the transaction, determined taking into account the requirements of Article 176 of this Code, including excise tax (for excisable goods and services) and excluding tax.

A taxpayer who provides discounts (other commercial bonuses) to buyers on the date of the sales turnover determines the tax base based on the price (tariff) less such discounts (commercial bonuses).

The tax base is determined based on the market value of goods (services), determined in accordance with the procedure approved by the Cabinet of Ministers of the Republic of Uzbekistan, in the following cases (part three of Article 248 as amended by Law of the Republic of Uzbekistan of March 11, 2022, No. ZRU-758, National Legislation Database, March 12, 2022, No. 03/22/758/0207):

1. the sale of goods (services) in exchange for other goods (services);

2. the gratuitous transfer of goods (services), unless otherwise provided by paragraph 2 of part one or paragraph 2 of part two of Article 239 of this Code;

3. the use of property of a legal entity for personal purposes in accordance with paragraph 6 of part four of Article 239 of this Code.

Tax authorities are entitled to adjust the tax base if the transaction price is below or above the market value of goods (services). The taxpayer is entitled to challenge such a decision by providing justification that the transaction price corresponds to market prices and is not aimed at tax evasion.

In selling goods imported into the territory of the Republic of Uzbekistan, the tax base may not be lower than the value from which the tax actually paid to the budget upon importation of those goods was calculated.

In providing services for the production of goods from customer-supplied raw materials and materials, the tax base is determined based on the cost of processing services excluding tax, and for excisable goods–based on the cost of processing services including excise tax calculated in accordance with this Code.

In constructing facilities, including turnkey construction, and in performing construction and installation, repair and construction, commissioning, design and survey, and scientific work, as well as under other long-term contracts with a long (exceeding one tax period) technological cycle, the tax base is determined based on the cost of work actually performed at the end of each calendar month, determined in accordance with Article 303 of this Code, excluding tax. Where the obligation to provide materials for such work rests with the customer under the contract and the customer retains ownership of those materials, the tax base is determined based on the cost of completed and confirmed work excluding the cost of the customer's materials.

In transferring goods (rendering services) as payment for the labor of individuals or as payment of dividends, as well as in the cases established by paragraph 3 of part four of Article 239 of this Code, the tax base is determined including tax, based on the cost of goods (services rendered) determined in accordance with part one of this Article.

In the event of loss of goods placed under the customs regime of a free customs zone without payment of tax, the tax base is determined in accordance with part one of Article 254 of this Code.

In selling a voucher granting the right to receive goods (services), the tax base is the value of the voucher inclusive of tax.

In selling motor vehicles and residential real estate objects acquired from individuals for resale, the tax base is determined as the positive difference between the selling price and the acquisition cost, inclusive of tax.

Where a taxpayer uses goods it has produced (or services it has rendered on its own account) for its own needs, and the expenses associated therewith are not deductible in calculating profit tax in accordance with Article 317 of this Code, the tax base is determined as the value of those goods (services), calculated based on the weighted average selling prices applied by such taxpayer for identical (or, in their absence, similar) goods (services) during the preceding 90 days, or, in the absence of such sales during that period, based on market prices including excise taxes (for excisable goods) and excluding tax.

In selling tickets, season tickets, resort vouchers (treatment vouchers), and other documents granting the right to receive services, the sales turnover of which is exempt from taxation in accordance with this Section, the tax base is determined as the positive difference between the selling price and the acquisition price, inclusive of tax.

Where, in respect of property received by a creditor for performance of an obligation secured by a pledge in accordance with Article 266 of this Code, tax was not accepted for credit, then in selling that property the tax base is determined as the positive difference between the selling price of the property (inclusive of tax) and the cost of that property upon acquisition on the balance sheet of the credit organization for performance of the obligation.

In the cases provided for in part three of Article 46 of this Code, the tax base is determined from the amount of remuneration inclusive of tax received in the form of distribution of collected fines provided for by legislation.

Special considerations for determining the tax base, taking into account other conditions and circumstances, are established by Articles 249 through 256 of this Code.

Article 256. Special Rules for Tax Agents to Determine the Tax Base in Transactions Involving State Property

When state government or administrative bodies lease state property in the territory of the Republic of Uzbekistan, the authorized body responsible for leasing state property is recognized as the tax agent. In those cases, the tax agent determines the tax base as the rent established by the lease agreement, inclusive of tax.

When state property is sold or transferred in the territory of the Republic of Uzbekistan, the tax agent determines the tax base. The purchasers or recipients of the property are recognized as tax agents in those cases, other than individuals who are not individual entrepreneurs. The tax agent determines the tax base as the value of the state property acquired or received as established by the agreement, exclusive of tax.

When confiscated property, property sold by court decision, ownerless valuables, treasure trove, purchased valuables, or valuables that passed to the state by inheritance are sold in the territory of the Republic of Uzbekistan, the tax agent determines the tax base as the income from the sale of that property or those valuables, inclusive of excise tax for excisable goods and tax. The body, organization, or individual entrepreneur authorized to sell the property is recognized as the tax agent in those cases.

Tax agents determine the tax base separately for each transaction provided by this Article.

Persons recognized as tax agents under this Article must calculate, withhold from the taxpayer, and pay to the budget the corresponding amount of tax regardless of whether those persons are themselves taxpayers.

This Article does not apply to the sale of goods provided by item 26.1 of part one of Article 243 of this Code.

[Article 256 supplemented with part six by Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067; effective January 1, 2025.]

A payment document confirming payment of tax under this Article entitles the purchaser to a credit for the amount of tax paid in accordance with Chapter 37 of this Code.

Article 258. Tax Rates

Unless otherwise established by Chapter 36 of this Code, the tax rate is 12 percent.

[Part one of Article 258 as amended by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

In the cases provided by Chapter 36 of this Code, the tax rate is zero percent.

Article 261. Evidence of Export Transactions

The following documents constitute evidence of the exportation of goods:

1. the contract, or a copy certified in the established manner;

2. the cargo customs declaration serving as the basis for removal of the goods from the customs territory of the Republic of Uzbekistan, and documents serving as the basis for removal from that territory of goods sold to foreign states on domestic or foreign electronic marketplaces or electronic trading platforms;

3. shipping documents bearing an endorsement of the customs authority located at the exit checkpoint from the customs territory of the Republic of Uzbekistan confirming that vehicles loaded with the goods crossed the customs border.

[Item 3 of part one of Article 261 as amended by Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067; effective January 1, 2025; also applicable to export transactions from December 1, 2023, until that Law entered into force.]

Information concerning the crossing of the customs border by goods, provided by the customs authorities to the tax authorities under Article 133 of this Code through real-time electronic information exchange, constitutes a basis for confirming the exportation of the goods.

[Article 261 supplemented with part two by Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067; effective January 1, 2025; also applicable to export transactions from December 1, 2023, until that Law entered into force.]

If goods are exported through a commission agent or attorney under a commission or agency agreement, the principal must additionally submit, as evidence of exportation, the taxpayer's commission or agency agreement, or a copy, with the commission agent or attorney.

Other documents may be submitted as evidence of exportation depending on the type of activity conducted. The Cabinet of Ministers of the Republic of Uzbekistan approves the list of documents required to substantiate the taxpayer's right to apply the zero tax rate for each type of activity and the procedure for their submission.

[Part three of Article 261 as amended by Law of the Republic of Uzbekistan No. ZRU-758 of March 11, 2022; National Database of Legislation, March 12, 2022, No. 03/22/758/0207.]

Article 263. Taxation of Services Connected with International Carriage

Taxation is at the zero rate upon the sale of:

1. services for the international carriage of goods. International carriage of goods means carriage of goods by aircraft, by rail, and/or by motor vehicle where the point of departure or the point of destination of the goods is situated outside the territory of the Republic of Uzbekistan;

2. services directly connected with the carriage or transportation of goods placed under the customs transit procedure in the case of carriage of foreign goods from the customs authority at the place of arrival in the territory of the Republic of Uzbekistan to the customs authority at the place of exit from the territory of the Republic of Uzbekistan;

3. services for the carriage of passengers, mail, and baggage, on condition that the point of departure or the point of destination of passengers, mail, and baggage is situated outside the territory of the Republic of Uzbekistan, where the carriage is documented on the basis of uniform international transport documents;

4. services rendered by carriers that are legal entities of the Republic of Uzbekistan for the carriage or transportation of goods exported beyond the territory of the Republic of Uzbekistan, and for the export from the territory of the Republic of Uzbekistan of products processed on the territory of the Republic of Uzbekistan. The provisions of this paragraph apply on condition that customs authority marks are affixed to the transport documents;

5. services rendered directly at airports of the Republic of Uzbekistan and in the airspace of the Republic of Uzbekistan for the servicing of aircraft during international carriage, including air navigation services.

The provisions of this Article also apply to freight-forwarding services rendered under freight-forwarding agreements when organizing the international carriage of goods.

For the purposes of this Article, freight-forwarding services include services for the receipt and delivery of cargo, loading and unloading and storage, organizing cargo insurance, customs clearance of goods and vehicles, locating cargo after the expiry of delivery periods, and storage services at the freight forwarder's warehouses.

Article 264. Application of the Zero Rate in Particular Cases

Turnover from the sale of goods or services is taxed at the zero rate by reimbursement or refund of tax paid if the goods or services are acquired by:

1. foreign diplomatic and equivalent missions for official use, or by diplomatic and administrative-technical personnel of those missions, including family members residing with them, for personal use;

2. taxpayers acquiring goods or services as part of activities under a production-sharing agreement, if the agreement provides for application of the zero rate.

The zero rate under item 1 of part one of this Article applies if the legislation of the relevant foreign state establishes an equivalent procedure for diplomatic and equivalent missions of the Republic of Uzbekistan and the diplomatic and administrative-technical personnel of those missions, including family members residing with them, or if such a rule is provided by an international treaty of the Republic of Uzbekistan.

[Part three of Article 264 to be deleted with effect from April 1, 2024, by Law of the Republic of Uzbekistan No. ZRU-891 of December 28, 2023; National Database of Legislation, December 29, 2023, No. 03/23/891/0989.]

The zero rate applies to precious metals sold by their producers to the authorized body responsible for acquiring precious metals.

Turnover from the sale of goods grown by agricultural producers and included in the list of agricultural products approved by the Ministry of Agriculture of the Republic of Uzbekistan and the Tax Committee of the Republic of Uzbekistan, other than cotton and grain, is taxed at the zero rate.

[Classification reference: 1.07.00.00.00 Legislation on Finance and Credit; Banking Activity / 07.10.03.00 (repealed) Value-Added Tax / 07.10.03.04 (repealed) Procedure for Calculating and Paying Value-Added Tax / 07.90.00.00 (repealed) National Taxes.]

Chapter 37. Procedure for Calculating and Paying Tax; Procedure for Submitting Tax Reporting

Article 266. Credit for Tax Paid

Unless otherwise provided by Article 267 of this Code, in determining the amount of tax payable to the budget, a taxpayer has the right to reduce the total tax calculated under Article 265 of this Code by claiming a credit for tax paid or payable on goods or services actually received, provided all of the following conditions are satisfied:

1. the goods or services are used in the taxpayer's activities connected with the production and (or) sale of goods or the provision of services, turnover from which is taxable, including at the zero rate;

2. the taxpayer has received an invoice or another document provided by the supplier for the goods or services that separately states the tax amount, and the supplier is registered as a taxpayer;

3. upon importation of goods, the tax has been paid to the budget;

4. in the cases provided by Articles 255, 256, and 266.1 of this Code, the tax has been paid to the budget;

5. when goods taxable at the zero rate are exported, a bank statement confirms payment for the exported goods by the foreign purchaser or payer, except in the cases provided by part three of this Article.

[Item 5 of part one of Article 266 as amended by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021; National Database of Legislation, December 30, 2021, No. 03/21/741/1219.]

Tax payable or paid on goods or services actually received and used to export goods taxable at the zero rate is creditable in the proportion represented by foreign-currency proceeds received in the taxpayer's accounts with a bank of the Republic of Uzbekistan, except in the cases provided by part three of this Article.

[Part two of Article 266 as amended by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021; National Database of Legislation, December 30, 2021, No. 03/21/741/1219.]

Tax payable or paid on goods or services actually received and used to export goods taxable at the zero rate is creditable regardless of receipt of foreign-currency proceeds in the taxpayer's accounts with banks of the Republic of Uzbekistan if the taxpayer is classified as a compliant taxpayer that ensured timely receipt of foreign-currency proceeds during the preceding year and has no overdue receivables under export contracts. If all or part of the foreign-currency proceeds are not received in the taxpayer's accounts with banks of the Republic of Uzbekistan within 180 calendar days after release of the goods under the export customs procedure, the credited tax amount or the corresponding part is disallowed as a credit in the established manner.

[Article 266 supplemented with part three by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021; National Database of Legislation, December 30, 2021, No. 03/21/741/1219.]

If goods taxable at the zero rate are exported through a commission agent or attorney under a commission or agency agreement, tax is creditable in the proportion represented by foreign-currency proceeds received in an account of the commission agent, attorney, or taxpayer.

Individual entrepreneurs and legal entities of the Republic of Uzbekistan providing services whose place of sale is not recognized as the territory of the Republic of Uzbekistan have the right to a credit, in the manner established by this Chapter, for tax paid or payable on goods or services actually received. For purposes of this Chapter, turnover from the sale of those services is treated as taxable turnover.

When a taxpayer acquires fixed assets, including equipment for installation, intangible assets, or immovable-property assets, including construction in progress, or acquires goods or services to create assets intended for subsequent use as its own fixed assets, the tax amount charged to the taxpayer by the seller is creditable in full. Tax paid by the taxpayer upon importation of such goods into the territory of the Republic of Uzbekistan is creditable in the same manner.

When property is received as a contribution to the charter fund or authorized capital, the recipient has the right to a credit for tax paid by the member upon contribution of the property. For fixed assets, intangible assets, and immovable-property assets, including construction in progress, received as such a contribution, tax paid by the member upon contribution is creditable by the taxpayer receiving the transferred assets in the manner provided by part six of this Article.

[Part seven of Article 266 as amended by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

When a person that was not a taxpayer is entered in the special register as a taxpayer under Article 237 of this Code, or when an exemption from payment of tax is revoked, the person has the right to a credit for tax included in the carrying amount of inventories and long-term assets on its balance sheet on the registration or revocation date, provided the conditions in part one of this Article are satisfied.

[Part eight of Article 266 as amended by Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067; effective January 1, 2026.]

The tax amount creditable under part eight of this Article is determined:

[The first textual paragraph of part nine of Article 266 as amended by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

for inventory balances, from the actual cost of goods or services acquired during the twelve months preceding the person's registration date that is attributable to inventories held by the taxpayer on the registration or exemption-revocation date;

for long-term assets, from the carrying or residual amount of those assets, disregarding revaluation, on the date the person is registered for the tax or the exemption is revoked, including the corresponding tax amount.

If a commission agent or attorney sells goods on terms conforming to a commission or agency agreement and the principal is a foreign person not registered as a taxpayer, tax paid upon importation of the goods into the territory of the Republic of Uzbekistan is creditable by the commission agent or attorney in the proportion attributable to goods sold by that person in the relevant tax period.

[Part ten of Article 266 as amended by Law of the Republic of Uzbekistan No. ZRU-891 of December 28, 2023; National Database of Legislation, December 29, 2023, No. 03/23/891/0989; effective January 1, 2024.]

When a commission agent or attorney imports into the territory of the Republic of Uzbekistan goods acquired on instructions from a principal that is a legal entity of the Republic of Uzbekistan or an individual entrepreneur, tax paid upon customs clearance of the imported goods is creditable by the principal.

Tax on services acquired by a freight forwarder from a carrier and (or) other suppliers when performing obligations under a freight-forwarding agreement is creditable by the party that is the freight forwarder's client under that agreement.

Tax charged by sellers to a foreign person that is not a taxpayer in the Republic of Uzbekistan when that person acquires goods or services in the Republic of Uzbekistan, or paid by that person upon importation of goods into the Republic of Uzbekistan for production and (or) sale of goods, is creditable. Those tax amounts are creditable or refundable to the foreign person after payment to the budget of tax withheld by a tax agent from the foreign person's income under Article 255 of this Code, and only to the extent the goods or services acquired or imported by that person were used to produce and (or) sell goods from whose value the tax agent withheld tax. The tax amounts are creditable or refundable only if the foreign person is entered in the special register as a taxpayer under Article 237 of this Code.

If a taxpayer sells goods or services with taxable turnover and goods or services with turnover exempt from taxation, the creditable tax amount is determined in the manner established by Article 268 of this Code.

The tax authorities have the right to reverse or adjust a credit if there is evidence that entitlement to the credit arose from a sham or simulated transaction for the acquisition of goods or services.

Article 266.1. Special Rules for Crediting Tax Amounts

The amount of tax paid or payable on goods or services actually received by a taxpayer whose certificate has been suspended, terminated, or canceled is not creditable. When any of these events occurs, the amount of tax paid or payable to that taxpayer on goods or services actually received from it is likewise not creditable by its customers.

An amount of tax paid or payable on goods or services actually received that was not accepted for credit because the certificate was suspended becomes creditable, by way of adjustment, by the taxpayer and its customers from the date on which the certificate was suspended if the certificate is reinstated.

[Article 266.1 added by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

If invoices are classified as presenting a high degree of tax risk, the tax on transactions involving the supply of goods or services under those invoices may be paid by a tax agent for purposes of claiming a credit for the tax amount. A legal entity, individual entrepreneur, or self-employed person that is a taxpayer and receives goods or services from the supplying taxpayer is treated as the tax agent for this purpose.

If a negative difference or an overpayment of tax arises for the supplier of goods or services, that amount may be credited against future tax payments or reimbursed or refunded in accordance with the procedure established by this Code.

Classification of invoices issued by suppliers of goods or services as presenting a high degree of risk does not deprive those suppliers of the right to credit the amount of value added tax on goods or services received in accordance with the procedure established by this Section.

In the cases provided for in part three of this Article, tax amounts are credited to the tax agent in the tax period in which the corresponding tax amount is paid to the budget, except in the cases provided for in part seven of this Article.

If payment is made under invoices relating to a tax period for which the reporting deadline has not yet arrived, the credit is allowed to the tax agent in the corresponding tax period according to the date of those invoices.

The procedure for determining the degree of risk presented by invoices, maintaining the register of those invoices, and paying tax under those invoices is established by the Cabinet of Ministers of the Republic of Uzbekistan.

Where there is evidence that tax amounts credited by a purchaser under invoices classified as presenting a low degree of risk arose from a fictitious or simulated transaction, the tax authorities may cancel or correct the credit under those invoices. This authority does not extend to tax amounts credited because tax was paid in accordance with the procedure established by this Article under invoices initially classified as presenting a high degree of risk.

Article 267. Amounts of Tax Not Subject to Crediting

Amounts of tax paid by the taxpayer upon acquisition (importation) of goods (services) are not subject to crediting in accordance with Article 266 of this Code in the following cases:

1. acquisition (importation) of fixed assets, real estate objects, and intangible assets intended for the production and/or sale of goods (provision of services), the sales turnover of which is exempt from taxation in accordance with this Section;

2. acquisition of goods (services) for construction, modernization, reconstruction, technical re-equipment, and repair of fixed assets and real estate objects specified in paragraph 1 of this part;

3. acquisition of goods (services) for the production and/or sale of goods (provision of services) the sales turnover of which is exempt from taxation;

4. acquisition of goods (services) by legal entities or individual entrepreneurs who are not taxpayers;

5. hospitality expenses;

6. gratuitous receipt of goods (services), except in cases where the recipient has paid tax on them;

7. acquisition of goods (services) intended for use (that have been used) for the taxpayer's own needs, the expenses on which are not deductible upon calculation of profit tax in accordance with Article 317 of this Code.

The amount of value-added tax stated in an invoice classified as high-risk is not creditable by buyers who acquired goods (services) on the basis of such invoices, except in cases where the amount of tax has been paid in the manner provided for by Article 266.1 of this Code.

Amounts of tax paid by the taxpayer upon acquisition (importation) of goods (services) are also not subject to crediting upon the acquisition or importation of the following goods (services), if the acquisition of those goods (services) is not connected with the type of activity being carried out:

1. passenger cars, motorcycles, helicopters, motor boats, airplanes, and other types of motor vehicles and fuel for them;

2. alcoholic and tobacco products.

The amount of tax not subject to crediting is included in the cost of the acquired goods (services), unless otherwise provided by Articles 268–270 of this Code.

Article 269. Adjustment of Tax Amounts Credited

Tax on acquired goods or services previously credited upon acquisition must be adjusted in the following cases:

1. their subsequent use for turnover exempt from taxation;

2. their spoilage or loss above the natural-wastage norms established by an authorized body under legislation or, if no such norms exist, by the taxpayer. This item does not apply to spoilage or loss caused by extraordinary circumstances, including a natural disaster, fire, accident, road-traffic accident, or similar circumstance;

3. invalidation, in the manner established by legislation, of the invoice issued by the supplier;

4. loss of taxpayer status or receipt of an exemption from payment of tax;

5. storage of the goods at immovable-property facilities leased or used without consideration under agreements not registered with the tax authorities.

[Part one of Article 269 supplemented with item 5 by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021; National Database of Legislation, December 30, 2021, No. 03/21/741/1219.]

Tax on acquired goods or services that was not previously credited under items 1 through 4 of part one of Article 267 of this Code must be adjusted, and credited, if the goods or services are subsequently used for taxable turnover.

[Part two of Article 269 as amended by Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067; effective January 1, 2026.]

The tax amount to be adjusted is determined from the cost of goods or services acquired during the twelve months preceding the adjustment that is attributable to inventory balances for which tax must be restored.

The tax amount to be adjusted in respect of fixed assets, immovable-property assets, and intangible assets is determined, in the manner provided by Article 270 of this Code, from the tax previously credited in respect of those assets or included in their cost that is attributable to their carrying amount, disregarding revaluation.

Tax must be restored in the amount previously credited in respect of the goods or services and, in respect of fixed assets, immovable-property assets, and intangible assets, in the amount proportionate to their residual or carrying amount, disregarding revaluation.

If the supplier of goods or services adjusts the tax base under Article 257 of this Code, the purchaser must make a corresponding adjustment to the tax previously credited on the basis of an additional or corrected invoice issued by the supplier.

The tax adjustment increases or decreases the carrying amount of those assets or is included in expenses or income taken into account in calculating profit tax.

If goods are placed under the re-export customs procedure and tax paid upon their importation is refunded to the taxpayer under customs legislation, the taxpayer adjusts and reduces the credited tax by the amount refunded.

An adjustment to tax credited is made in the tax period in which the circumstances specified in this Article arise.

Article 274. Tax Reimbursement

Unless otherwise provided by this Article, an amount of tax reimbursable under Article 272 of this Code is credited against future payments of the tax.

A taxpayer also has the right to seek reimbursement or refund of a negative tax amount by notifying the tax authorities when submitting tax reporting for refund of the reimbursable tax amount.

If, following a desk audit, the tax authority decides to reimburse the tax amount in full or in part, the amount is refunded to the taxpayer no later than thirty days after the date on which the tax authorities were notified of the refund upon submission of the tax reporting.

[Part three of Article 274 as amended by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

The expedited procedure for reimbursement of the entire tax amount upon notification of the tax authorities of the refund when tax reporting is submitted applies to the following categories of taxpayers:

[The first textual paragraph of part four of Article 274 as amended by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021; National Database of Legislation, December 30, 2021, No. 03/21/741/1219.]

1. legal entities of the Republic of Uzbekistan classified in the established manner as large taxpayers;

2. taxpayers that submit a valid bank guarantee with the tax reporting or enter into a pledge agreement with the tax authorities in the manner established by Article 107 or 109 of this Code;

[Item 2 of part four of Article 274 as amended by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021; National Database of Legislation, December 30, 2021, No. 03/21/741/1219.]

3. persons conducting export and equivalent transactions, to the extent of the amount resulting from application of the zero rate, if tax was previously reimbursed to those persons and no violation was identified;

4. foreign diplomatic and equivalent missions;

5. parties to a production-sharing agreement, if the agreement provides for application of the zero rate;

6. tax-monitoring participants;

7. business entities in category "AAA" of the high Business Entity Sustainability Rating, other than state enterprises and legal entities in which the state holds 50 percent or more of the charter fund or authorized capital;

[Part four of Article 274 supplemented with item 7 by Law of the Republic of Uzbekistan No. ZRU-1000 of November 15, 2024; National Database of Legislation, November 16, 2024, No. 03/24/1000/0928.]

8. agricultural producers, other than producers of cotton or grain;

9. business entities that expanded from the small-business category to the medium- or large-business category, or from the medium-business category to the large-business category, during the year following the date of transition to the relevant category. This procedure may be applied only once during a business entity's existence. This item does not apply to a legal successor or successors of an entity reorganized after its transition to the relevant category.

Under the expedited procedure, the tax amount stated by the taxpayer in its tax reporting for refund is reimbursed in full within seven days; for taxpayers specified in item 7 of part four of this Article, within one day; and for taxpayers specified in item 8, automatically within three days. A desk audit of the substantiation of the tax amount stated for reimbursement is conducted under the general procedure. If a desk audit establishes that all or part of the amount stated for reimbursement was unsubstantiated, the taxpayer must pay the amount improperly reimbursed to the budget, together with late-payment interest accrued from the reimbursement date through the payment date. The substantiation of amounts stated for reimbursement by taxpayers specified in item 7 is not subject to desk audit.

The Cabinet of Ministers of the Republic of Uzbekistan approves the procedure and conditions for reimbursement of tax amounts, the procedure for conducting desk audits under this Article, and the procedure and conditions for refunding tax amounts to citizens of foreign states under the TAX FREE system.

[Part six of Article 274 as amended by Law of the Republic of Uzbekistan No. ZRU-758 of March 11, 2022; National Database of Legislation, March 12, 2022, No. 03/22/758/0207.]

Chapter 38. Special Tax Rules in Particular Cases

Article 283. Taxpayers

The following persons are recognized as excise-tax payers (in this Section, "taxpayers"):

1. persons producing goods subject to excise tax, or excisable goods, in the territory of the Republic of Uzbekistan;

2. persons selling natural gas to consumers;

3. persons selling gasoline or diesel fuel to final consumers, including through filling stations, and gas through gas-filling stations and gas-filling points. For purposes of this Section, final consumers are legal entities and individuals acquiring gasoline, diesel fuel, or gas for their own needs;

[Item 3 of part one of Article 283 as amended by Law of the Republic of Uzbekistan No. ZRU-659 of December 30, 2020; National Database of Legislation, December 31, 2020, No. 03/20/659/1681; effective January 1, 2021.]

4. the authorized representative of a party to a simple partnership charged with conducting the partnership's affairs, in respect of activities connected with production of excisable goods under the simple-partnership agreement;

5. persons moving excisable goods across the customs border of the Republic of Uzbekistan. Those persons are recognized as taxpayers in accordance with customs legislation.

Foreign legal entities conducting activities in the Republic of Uzbekistan through permanent establishments that produce or import goods subject to excise tax are also recognized as taxpayers.

[Part two of Article 283 as amended by Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067; effective January 1, 2025.]

Article 284. Object of Taxation

The object of excise taxation (in this Section, "tax") is:

1. the sale of excisable goods, including transfer of excisable goods in exchange for other goods or services, comprising:

transfer of title to goods;

transfer by a pledgor of pledged excisable goods upon nonperformance of the obligation secured by the pledge;

transfer of excisable goods without consideration;

transfer of excisable goods or services as remuneration of individuals or payment of dividends;

2. transfer of excisable goods as a contribution to the authorized capital or charter fund of a legal entity or as a contribution by a partner or party under a simple-partnership or joint-activity agreement;

3. transfer of excisable goods:

a) to a member upon withdrawal or departure from membership, upon reduction of the member's participating interest in a legal entity, or upon repurchase by the legal entity of all or part of the member's participating interest in that legal entity;

b) to a shareholder when the issuing legal entity repurchases from the shareholder shares issued by that entity;

c) to a shareholder or member upon liquidation of a legal entity;

4. transfer of excisable goods for processing on a tolling basis, and transfer by the producer to the owner of tolling raw materials and supplies, including excisable raw materials and supplies, of excisable goods produced from them;

5. use of excisable goods for the person's own needs;

6. importation of excisable goods into the customs territory of the Republic of Uzbekistan;

7. sale of gasoline, diesel fuel, or gas to final consumers, or use of them for the person's own needs;

[Deletion date for item 8 of part one of Article 284 under Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024: January 1, 2025; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067.]

9. spoilage or loss of excisable goods produced in the territory of the Republic of Uzbekistan and (or) excisable goods imported into its customs territory, other than cases caused by an emergency. If insurance coverage is paid or the person at fault reimburses the value of the goods, excise tax is payable in the proportion represented by that coverage or reimbursement.

The following is not an object of taxation:

1. sale of excisable goods for export under the export customs procedure;

[Item 1 of part two of Article 284 as amended by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021; National Database of Legislation, December 30, 2021, No. 03/21/741/1219.]

2. transfer of excisable processed products manufactured from goods placed under the inward-processing customs procedure, provided the processed products are subsequently removed from the customs territory of the Republic of Uzbekistan;

3. sale of liquefied gas to the public for household needs through specialized gas-supply enterprises;

4. importation into the customs territory of the Republic of Uzbekistan of excisable goods imported:

as humanitarian aid in the manner determined by the Cabinet of Ministers of the Republic of Uzbekistan;

for charitable assistance, including technical assistance, through states, governments, or international organizations;

using loans from international financial institutions or international loans from governmental organizations, if exemption upon importation is provided by law;

[The fourth textual paragraph of item 4 of part two of Article 284 as amended by Law of the Republic of Uzbekistan No. ZRU-659 of December 30, 2020; National Database of Legislation, December 31, 2020, No. 03/20/659/1681; effective January 1, 2021.]

5. importation by individuals into the customs territory of the Republic of Uzbekistan of excisable goods within the limits for importation of goods not subject to tax. Legislation establishes the maximum limits for importation by individuals into the territory of the Republic of Uzbekistan of goods not subject to tax;

6. technical equipment for operational-search-measure systems acquired by telecommunications operators and the special body for certification of such equipment, if written confirmation from the specially authorized state body is available;

[Item 6 of part two of Article 284 as amended by Law of the Republic of Uzbekistan No. ZRU-992 of November 5, 2024; National Database of Legislation, November 6, 2024, No. 03/24/992/0895.]

6.1) technical equipment for an operational-search-measure system acquired by the specially authorized state body;

[Part two of Article 284 supplemented with item 6.1 by Law of the Republic of Uzbekistan No. ZRU-992 of November 5, 2024; National Database of Legislation, November 6, 2024, No. 03/24/992/0895.]

7. natural wines, other than bottled wines, sold by producers in tasting zones or locations organized along tourist routes.

[Part two of Article 284 supplemented with item 7 by Law of the Republic of Uzbekistan No. ZRU-659 of December 30, 2020; National Database of Legislation, December 31, 2020, No. 03/20/659/1681; effective January 1, 2021.]

Article 285. Tax Base

The tax base is determined separately for each type of excisable goods, depending on the established tax rates.

[Part one of Article 285 as amended by Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067; effective January 1, 2025.]

For excisable goods subject to tax rates established as absolute or fixed amounts, the tax base is determined from the physical volume of the excisable goods.

[Part two of Article 285 as amended by Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067; effective January 1, 2025.]

For produced excisable goods subject to percentage or ad valorem tax rates, the tax base is the value of excisable goods sold, but not less than their actual production cost.

[Part three of Article 285 as amended by Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067; effective January 1, 2025.]

For excisable goods transferred as remuneration of individuals, as accrued dividends, without consideration, or in exchange for other goods or services, the tax base is determined in the manner established by parts two and three of this Article.

For excisable goods produced from tolling raw materials and supplies, the tax base includes the cost of the work to produce the excisable goods and the value of the tolling raw materials and supplies.

For excisable goods subject to combined tax rates consisting of fixed and ad valorem rates, the tax base is determined from the physical volume of the excisable goods and the value of the excisable goods sold, unless otherwise provided by parts two and three of this Article.

For imported excisable goods subject to percentage or ad valorem tax rates, the tax base is determined from the customs value established in accordance with customs legislation.

For imported excisable goods subject to fixed tax rates, the tax base is determined from the physical volume of the imported excisable goods.

For imported excisable goods subject to combined tax rates consisting of fixed and ad valorem rates, the tax base is determined from the volume and (or) customs value of the excisable goods established in accordance with customs legislation.

When gasoline, diesel fuel, or gas is sold to final consumers, the tax base is the physical volume sold and (or) used for the person's own needs.

Article 286. Date of Taxable Transactions Involving Excisable Goods

[Heading of Article 286 as amended by Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067; effective January 1, 2025.]

The date of a taxable transaction involving excisable goods is the date provided by Article 242 of this Code for the relevant transaction.

[Part one of Article 286 as amended by Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067; effective January 1, 2025.]

The date of a taxable transaction involving imported excisable goods is their release date under the import customs procedure.

Article 289. Tax Rates

Tax rates are established as a percentage of the value of a product or service (ad valorem), as an absolute amount per unit of measurement in physical terms (fixed), or as combined rates consisting of ad valorem and fixed tax rates.

Article 289.1. Tax Rates on Tobacco Products

The tax rates on tobacco products are set at the following amounts:

* The tax at the established tax rate is also payable on the import of tobacco-free hookah mixture.

** When nicotine-containing liquid (nicotine) is imported in systems used to consume it, whether electronic or otherwise, the tax is payable on the basis of the volume of nicotine-containing liquid.

For item 1 of part one of this Article, the fixed tax rate applies to the volume of excise goods measured in physical units.

[Part two of Article 289.1 as amended by Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067; effective January 1, 2025.]

For items 3 through 6 of part one of this Article, the tax rate applies to the mass of tobacco raw material in the tobacco product, provided that the consumer packaging (container) bears information about the mass of tobacco raw material. If the mass of tobacco raw material in hookah tobacco is less than 20 percent of the net weight (including primary packaging), the tax is calculated on 20 percent of the net weight. If the consumer packaging (container) does not bear information about the mass of tobacco raw material, the tax rate applies to the net weight (including primary packaging).

[Part three of Article 289.1 as amended by Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067; effective January 1, 2025.]

For item 7 of part one of this Article, the tax rate applies to the net weight of the goods; the weight of the consumer packaging (plastic jar, cardboard box, or the like) is not included. If the consumer packaging (container) does not bear information about the net weight of the goods, the tax rate applies to the net weight including consumer packaging (container).

[Article 289.1 added by Law of the Republic of Uzbekistan No. ZRU-659 of December 30, 2020; National Database of Legislation, December 31, 2020, No. 03/20/659/1681; effective January 1, 2021.]

Article 289.2. Tax Rates on Alcoholic Products

Tax rates on alcoholic products are set at the following amounts:

Article 289.3. Tax Rates on Petroleum Products and Other Excise Goods and Services

Tax rates on petroleum products and other excise goods are set at the following amounts:

* The tax does not apply to juices made from fruits and/or vegetables that are naturally sweet and do not contain added sugar and other sweetening or flavoring substances.

** The tax at the established tax rate is paid by legal entities producing and importing goods into the territory of the Republic of Uzbekistan.

In item 3 of part one of this Article, tax rates are established for excise goods produced in the Republic of Uzbekistan, including imported excise goods, and do not apply to the importation of such goods.

[Part two of Article 289.3 as amended by Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067; effective January 1, 2025. The current LexUZ Russian consolidation contains a typographical cross-reference to Article 298.3; the amending Law identifies Article 289.3.]

When excise goods brought in (imported) as provided for in item 4 of part one of this Article are used for the taxpayer's own needs, the persons that imported those goods for their own needs are the taxpayers.

[Part three of Article 289.3 as amended by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021; National Database of Legislation, December 30, 2021, No. 03/21/741/1219.]

If information about the sugar content of the goods specified in item 5 of part one of this Article is not indicated on the consumer packaging, the highest tax rate applies to those goods.

[OKOZ: 1.07.00.00.00 Legislation on Finance and Credit. Banking Activities / 07.10.04.00 (repealed) Excise Tax / 07.10.04.03 (repealed) Procedure, Deadlines for Payment, and Benefits of Excise Tax / 07.90.00.00 (repealed) National Taxes]

Chapter 41. Procedure for Calculating the Tax, Submitting Tax Returns, and Paying the Tax

Article 297. General Provisions

Aggregate income consists of income received by a legal entity from sources in and outside the Republic of Uzbekistan during the reporting or tax period.

Aggregate income is determined exclusive of value-added tax and excise tax, unless otherwise provided by Article 299 of this Code.

For purposes of this Section, aggregate income (in this Section, "income") includes income receivable (in this Section, "received") in any form and (or) from any activity, including in particular:

1. income from the sale of goods or services;

2. income in the form of remuneration on a credit, loan, microcredit, or other financial transaction;

3. income of an insurance or reinsurance organization under insurance or reinsurance agreements;

[Item 4 of part three of Article 297 deleted by Law of the Republic of Uzbekistan No. ZRU-1057 of April 17, 2025.]

5. income from transactions involving securities and (or) financial instruments of forward transactions in accordance with Articles 327 through 329 of this Code;

6. income from the disposal of depreciable assets and other property in accordance with Article 298 of this Code;

[Item 6 of part three of Article 297 as amended by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021; National Database of Legislation, December 30, 2021, No. 03/21/741/1219.]

7. income in the form of consideration for the transfer of property under a finance lease or leasing agreement;

8. income from leasing or renting property, other than under a finance lease or leasing agreement;

9. royalties;

10. property or services received without consideration in accordance with Article 299 of this Code;

11. income in the amount of surplus inventories and other property identified during an inventory count;

12. income from the write-off of an obligation in the manner established by legislation, other than income from the write-off of expenses not previously deducted under Article 317 of this Code;

13. income received under an agreement assigning a right of claim in accordance with Article 300 of this Code;

14. income in the form of reimbursement of previously deducted expenses or losses in accordance with Article 301 of this Code;

15. income from service facilities in accordance with Article 302 of this Code;

16. income from participation in joint activities in accordance with Article 319 of this Code;

17. fines, late-payment charges, and other sanctions for breach of contractual obligations that are acknowledged by the debtor or payable by the debtor under a judicial act that has entered into legal force, and amounts compensating losses or damage;

18. positive exchange differences in accordance with Article 320 of this Code;

19. dividends and interest;

20. income from fiduciary management of property received by the settlor of the fiduciary management;

21. amounts of restored reserves whose formation costs were included in expenses in the manner and on the conditions established by Chapters 44 and 45 of this Code;

22. income received in connection with a reduction in the charter fund or authorized capital of a legal entity if a shareholder or member declines, in favor of that legal entity, to receive the value of all or part of its participating interest;

23. income from the sale of an enterprise as a property complex;

24. income resulting from a price adjustment in the cases and manner established by Section VI of this Code;

25. income in the form of profits of a controlled foreign company in the cases and manner established by Section VII of this Code;

25.1) income resulting from an adjustment of the tax base by reference to the market value of goods or services in the cases and manner established by part four of Article 248 of this Code;

[Part three of Article 297 supplemented with item 25.1 by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021; National Database of Legislation, December 30, 2021, No. 03/21/741/1219.]

26. income in the form of earmarked funds where separate accounting is not maintained and (or) the funds are used for purposes other than those specified, other than budget funds governed by budget legislation;

27. other income not specified in items 1 through 26 of this part.

Income is determined from primary and other documents, including electronic documents, confirming income received by the taxpayer, and from tax-accounting documents.

For purposes of this Section, aggregate income is determined from all receipts in monetary, in-kind, and (or) other forms.

Income received by a taxpayer whose value is denominated in a foreign currency is accounted for together with income whose value is denominated in the national currency.

Upon reorganization of a legal entity, the value of property and non-property rights having a monetary value and (or) obligations received or transferred by newly established, reorganizing, or reorganized legal entities by way of legal succession is not recognized as income of those entities if the property, rights, or obligations were acquired or created by the reorganizing legal entities before completion of their reorganization.

If recognition of income under accounting legislation differs from the procedure for determining and recognizing income under this Code, the income is accounted for for tax purposes in the manner established by this Code, except in the case specified in part nine of this Article.

The recognition date of income received by credit institutions is accounted for in accordance with International Financial Reporting Standards and (or) accounting legislation.

Unless otherwise provided by this Section, income recorded in accounting as a result of changes in the value of assets and (or) liabilities when applying accounting legislation is not treated as income for tax purposes, other than income actually received.

The income-recognition date is determined in accordance with accounting legislation, unless otherwise provided by this Code.

A taxpayer's income is adjusted in accordance with Article 332 of this Code.

If the same income falls within several categories of income, it is included only once in determining aggregate income.

Article 298. Income (Losses) from Disposal of Depreciable Assets and Other Property

Income (loss) from the disposal of depreciable assets and other property is the financial result from disposal, determined in accordance with this Article.

The financial result (profit or loss) from the disposal of a depreciable asset is determined by subtracting the residual value of the depreciable asset from the income received from its disposal. The residual value of a depreciable asset is determined in accordance with parts twenty-five and twenty-six of Article 306 and part seven of Article 307 of this Code.

When determining the financial result (profit or loss) from the disposal of a depreciable asset, the amount of revaluation (the excess of amounts of previous revaluations over the amount of previous write-downs) on such an asset, accumulated as of January 1, 2021, is included in the income from the disposal of the depreciable asset.

The financial result from the disposal of other property is determined in accordance with accounting legislation. The provisions of this part do not apply to cases of disposal of property for which special rules for determining the tax base are provided for in Chapter 45 of this Code.

(Article 298 as amended by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021, National Legislation Database, December 30, 2021, No. 03/21/741/1219)

Article 304. Income Disregarded for Tax Purposes

The following is disregarded as income:

1. funds received as a contribution to the charter fund or authorized capital;

2. the amount by which the placement price of shares or participating interests exceeds their nominal value or original amount;

3. funds received within the amount of a contribution to the charter fund or authorized capital upon withdrawal or departure from membership or reduction of a member's participating interest, and upon distribution of the property of a liquidated legal entity among its members;

4. funds pooled for joint activities under a simple-partnership agreement;

5. funds received by a partner or party to a simple-partnership agreement in the amount of its contribution when its share in the common property of the partners or parties is returned or that property is divided;

6. funds received from other persons as a prepayment or advance for goods or services to be sold;

6.1) funds received by management organizations or managers of apartment buildings from services provided and work performed for the management, maintenance, and repair of common property and for the improvement of land plots adjoining apartment buildings;

[Article 304 supplemented with item 6.1 by Law of the Republic of Uzbekistan No. ZRU-773 of May 31, 2022; National Database of Legislation, June 1, 2022, No. 03/22/773/0461.]

6.2) funds received by Mahalla Service companies from work connected with improvement of mahallas and provision to mahalla residents of particular socially significant paid services established by legislative acts;

7. funds received as a pledge or earnest money to secure obligations in accordance with legislation, until title to those funds passes;

8. property and services received without consideration pursuant to a decision of the President of the Republic of Uzbekistan or the Cabinet of Ministers of the Republic of Uzbekistan, or under an international treaty of the Republic of Uzbekistan;

9. grants, humanitarian aid, and earmarked receipts received, provided the requirements of Article 48 of this Code are satisfied;

10. funds received as insurance indemnity or an insured amount under insurance agreements;

11. property, other than consideration, received by a commission agent or other attorney in connection with performance of obligations under a commission, agency, or other intermediary-services agreement, and amounts reimbursing costs incurred by the commission agent or other attorney for the principal. Those costs are not deductible by the commission agent or other attorney if their reimbursement is provided by the agreements entered into;

12. reimbursement of the value of a finance-lease or leasing asset in the form of a portion of the rental or lease payment received by the lessor;

13. property received under a property lease or rental agreement, other than a finance lease or leasing agreement;

14. technical equipment for an operational-search-measure system on telecommunications networks received without consideration, and services for its operation and maintenance;

15. property contributed as an investment obligation under an agreement between an investor and the authorized state body responsible for management of state property;

16. funds or other property received under credit or loan agreements, including other analogous funds or property regardless of the form of the borrowing, including debt securities, and funds or other property received in repayment of such borrowings;

17. property received under a concession agreement in accordance with legislation;

18. property received by state institutions pursuant to decisions of executive authorities at any level;

19. income from state bonds and other state securities of the Republic of Uzbekistan, and income from international bonds issued by the Republic of Uzbekistan or legal entities of the Republic of Uzbekistan;

20. late-payment interest and fines written off in accordance with tax legislation;

21. income from the sale of green-energy certificates for generating facilities based on the use of renewable energy sources;

[Article 304 supplemented with item 21 by Law of the Republic of Uzbekistan No. ZRU-906 of February 7, 2024; National Database of Legislation, February 8, 2024, No. 03/24/906/0108.]

22. the portion of proceeds from the sale of property of a legal entity, individual, or individual entrepreneur declared bankrupt that is received by the debtor and applied to payment of debt;

[Article 304 supplemented with item 22 by Law of the Republic of Uzbekistan No. ZRU-911 of February 21, 2024; National Database of Legislation, February 22, 2024, No. 03/24/911/0142.]

23. income from REPO transactions.

[Classification reference: 1.07.00.00.00 Legislation on Finance and Credit; Banking Activity / 07.10.01.00 (repealed) Legal-Entity Profit Tax / 07.10.01.03 (repealed) Deductions and Losses / 07.90.00.00 (repealed) National Taxes.]

Chapter 44. Expenses

Article 305. General Provisions

When determining the tax base of legal entities specified in paragraph one of part one of Article 294 of this Code, all expenses connected with deriving income are deducted from the aggregate income of those entities, except for expenses not deductible in accordance with this Section.

For the purposes of this Section, expenses connected with deriving income are justified and documented expenditures (and, in the cases provided for in Articles 333–336 of this Code, losses) incurred by the taxpayer both in the Republic of Uzbekistan and abroad during the reporting (tax) period.

Justified expenses are economically warranted expenditures, the value of which is expressed in monetary form.

Expenditures are deemed economically warranted if they satisfy at least one of the following conditions:

1. incurred in order to carry out activities aimed at deriving income;

2. are necessary or serve to maintain or develop such entrepreneurial activity, and the connection of the expenses with entrepreneurial activity is clearly established;

3. follow from the provisions of legislation.

Documented expenses are expenditures confirmed by documents drawn up:

1. in accordance with the legislation of the Republic of Uzbekistan;

2. in accordance with the procedure applied in the foreign state on the territory of which the corresponding expenses were incurred;

3. in any other form, including a business-trip order, travel documents, or a report on a service rendered in accordance with a contract.

The amount of value-added tax credited in accordance with Chapter 37 of this Code is not treated as an expense, including upon the acquisition of depreciable assets, except in the cases provided for by Article 314 of this Code.

Where the same expenses are provided for under several expense items, those expenses are deducted only once when calculating the tax base.

Expenses incurred by the taxpayer, the value of which is expressed in foreign currency, are accounted for together with expenses the value of which is expressed in the national currency.

Where the recognition of an expense in accordance with the requirements of accounting legislation differs from the procedure for determining and recognizing an expense under this Code, the expense is accounted for tax purposes in the manner determined by this Code.

Unless otherwise provided for in this Section, amounts recorded in accounting due to changes in the value of assets and/or liabilities under accounting legislation are not treated as expenses for tax purposes, except for expenses actually paid.

Expenditures included in the initial value of long-term assets and in the cost of inventories in accordance with the requirements of accounting legislation are expensed through depreciation allowances and through the cost of such inventories, unless otherwise provided by this Code. (Part eleven of Article 305 as amended by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021, National Legislation Database, December 30, 2021, No. 03/21/741/1219)

The value of long-term assets for which depreciation allowances are not calculated in accordance with part six of Article 306 of this Code is accounted for when determining the tax base upon their disposal in the manner provided for by Article 298 of this Code.

Adjustment of the taxpayer's expenses is carried out in accordance with Article 332 of this Code.

Expenses specified in Articles 306–316 and Chapter 45 of this Code are deductible subject to the conditions provided for by part two of this Article.

Article 306. Depreciation Expenses

For purposes of this Code, depreciable assets are fixed assets and intangible assets accounted for as such by the taxpayer in accordance with this Code.

For tax purposes, a fixed asset is an item of property whose value per unit or set exceeds fifty times the base calculation amount established in the Republic of Uzbekistan on the date it is recognized as such, that is owned by the taxpayer, unless otherwise provided by this Article, and is used by the taxpayer in producing goods, providing services, or for administrative and management needs over a period exceeding twelve months.

A taxpayer has the right to establish in its accounting policy for tax purposes a lower value threshold for accounting for property as fixed assets.

[Deletion date for part four of Article 306 under Law of the Republic of Uzbekistan No. ZRU-1025 of February 7, 2025: May 8, 2025; National Database of Legislation, February 7, 2025, No. 03/25/1025/0116.]

Depreciable assets also include:

capital investment in the form of inseparable improvements made by a lessee or borrower for use, with the consent of the lessor or lender for use, to depreciable assets provided under a lease and (or) for use without consideration;

taxpayer expenses financed from its own funds for the construction of social-infrastructure networks for electricity, gas, heat, and water supply, sewerage, and roads. Those expenses are considered substantiated provided the social-infrastructure networks are transferred without consideration to the relevant utility organization and the relevant opinion of the Center for Comprehensive Expert Examination of Projects and Import Contracts is submitted to the tax authority.

A depreciable asset received under a finance lease or leasing agreement is included among the depreciable assets of the recipient of the leased asset.

The following assets are not depreciable:

1. land and other natural-resource-use objects, including water, subsoil, and other natural resources;

2. productive livestock;

3. information and library collections;

4. museum objects;

5. tangible cultural-heritage objects;

6. public roads, sidewalks, boulevards, public gardens, and public-improvement facilities administered by local public authorities;

7. a depreciable asset whose value was previously charged in full to expenses of that taxpayer for tax purposes;

8. capital investment not transferred by the taxpayer to depreciable assets;

9. depreciable assets of budget-funded organizations, other than depreciable assets acquired in connection with and used for business activities;

10. the corresponding portion of depreciable assets acquired or created from earmarked budget financing. This rule does not apply to a depreciable asset received by a taxpayer through privatization;

11. the corresponding portion of a depreciable asset received, acquired, or created using funds received under items 8, 9, 14, and 15 of Article 304 of this Code, or using funds released as a result of tax or customs reliefs.

For purposes of this Article, the following are excluded from depreciable assets:

1. a depreciable asset placed in conservation in the manner established by legislation, for the conservation period;

2. a depreciable asset that, by decision of the taxpayer, is under reconstruction or modernization for more than twelve months, except where the taxpayer continues using the asset in its activities during the reconstruction or modernization.

For purposes of this Article, a depreciable asset is recognized at historical cost, unless otherwise provided by this Article.

The historical cost of a depreciable asset acquired, received, or created after December 31, 2021, is the sum of the costs of its acquisition, construction, manufacture, delivery, and preparation for use. If the taxpayer received the asset without consideration or identified it during an inventory count, its historical cost is its market value determined under Article 299 of this Code.

The historical cost of a depreciable asset that is the subject of a finance lease and (or) leasing agreement is determined under a procedure analogous to that specified in part nine of this Article.

The historical cost of a depreciable asset received as a shareholder's, member's, or owner's contribution to the charter fund or authorized capital is its monetary valuation agreed by the shareholders, members, or owners, but not more than its market value determined under a procedure analogous to that specified in Article 299 of this Code.

The historical cost of a depreciable asset constructed, manufactured, or created by the taxpayer is the taxpayer's actual cost of erecting, constructing, building, completing, manufacturing, or creating that asset.

The historical cost of a depreciable asset is determined exclusive of:

value-added tax credited under Chapter 37 and (or) included in expenses under Article 314 of this Code;

interest expense and other expenses connected with acquisition of the depreciable asset that are deductible or included in expenses under this Code.

The historical cost of a depreciable asset transferred from inventories or assets held for sale is its carrying amount determined under accounting legislation on the transfer date.

If a taxpayer receives a depreciable asset as a result of reorganization, other than a change in legal form, the historical cost of the asset is its carrying amount stated in the transfer instrument or separation balance sheet.

For tax purposes, the historical or replacement cost of a depreciable asset recorded by the taxpayer for accounting purposes as of January 1, 2021, is its historical cost adjusted for prior revaluations.

In determining the replacement cost of a depreciable asset for purposes of this Article, account is taken of revaluations made by decision of the taxpayer as of January 1, 2020, and recorded in the taxpayer's accounting records after January 1, 2020.

For purposes of this Section, if a taxpayer revalues upward or downward a depreciable asset after January 1, 2021, the positive or negative revaluation amount is not recognized as income or expense and is disregarded in determining the asset's replacement cost and calculating depreciation.

The historical cost of a depreciable asset changes when the taxpayer makes economically justified capital investments in that asset.

The historical cost of a depreciable asset changes upon completion, additional equipping, modernization, reconstruction, technical re-equipping, partial liquidation, and on other analogous grounds, including environmental-protection purposes.

Completion, additional equipping, and modernization work comprises work connected with a change in the technological or service purpose of equipment, a building, structure, or other depreciable asset and (or) the acquisition of other new qualities.

For purposes of this Article, reconstruction is alteration of an existing depreciable asset under a reconstruction project to improve production and the asset's technical and economic indicators in order to increase production capacity, improve quality, and (or) change the range of goods or services.

Technical re-equipping is a set of measures to improve the technical and economic indicators of a depreciable asset or its parts through changes in equipment and technology, mechanization and automation of production, and modernization and replacement of functionally obsolete and physically worn equipment. Technical re-equipping also includes establishing new and expanding existing production facilities.

Capital investment in a leased depreciable asset and (or) a depreciable asset received under an agreement for use without consideration is depreciated as follows:

capital investment whose cost is reimbursed to the lessee by the lessor, or to the borrower for use by the lender for use, is depreciated by the lessor or lender for use;

capital investment made by a lessee with the lessor's consent, or by a borrower for use with the lender's consent, whose cost is not reimbursed by the lessor or lender for use, is depreciated by the lessee or borrower for use.

The residual value of a depreciable asset recorded by the taxpayer as of December 31, 2020, is the difference between its historical or replacement cost and depreciation charged or accumulated before January 1, 2021.

The residual value of a depreciable asset placed in service after December 31, 2020, is the difference between its historical cost and depreciation charged or accumulated for purposes of calculating tax. If an investment deduction is reversed under part seven of Article 308 of this Code, accumulated depreciation is determined after deducting the investment deduction.

The value of a depreciable asset is charged to expenses through depreciation deductions and (or) the investment deductions provided by Article 308 of this Code.

The value of a depreciable asset is charged to expenses through depreciation calculated from historical cost, disregarding revaluation, unless otherwise provided by part sixteen of this Article.

For purposes of calculating depreciation, depreciable assets are allocated to depreciation groups and subgroups on the date they are placed in service, in accordance with this Article and taking into account the Statistical Classifier of Fixed Assets of the Republic of Uzbekistan.

Depreciation of all depreciable assets other than intangible assets is calculated by the straight-line method using the following maximum depreciation rates:

For purposes of calculating tax, a taxpayer has the right to calculate depreciation at rates below those established by this Article.

For tax purposes, taxpayers determine the depreciation amount monthly. Depreciation is calculated separately for each depreciable asset as the product of its historical cost and the depreciation rate established for that asset.

Depreciation of a depreciable asset, including an asset whose rights are subject to state registration under legislation, begins on the date the asset is placed in service, regardless of the date of state registration.

If a taxpayer is established, liquidated, or reorganized during a calendar month, depreciation is calculated subject to the following special rules:

1. a taxpayer being established, including one created by reorganization, calculates depreciation from the date of its state registration;

2. a taxpayer being liquidated calculates depreciation through the liquidation-completion date, and a taxpayer being reorganized through the reorganization-completion date.

Part thirty-four of this Article does not apply to taxpayers changing their legal form.

Depreciation ceases on the date the value of a depreciable asset has been written off in full or the asset otherwise ceases to be included among the taxpayer's depreciable assets.

Depreciation of assets excluded from depreciable assets under part seven of this Article ceases on the exclusion date and resumes on the date the depreciable asset is released from conservation or its reconstruction or modernization is completed.

For tax purposes, the expenses provided by item 17 of Article 317 of this Code are not included in the value of a depreciable asset.

Special rules for charging the value of intangible assets to expenses are provided by Article 307 of this Code.

[Article 306 as revised by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021; National Database of Legislation, December 30, 2021, No. 03/21/741/1219.]

If, under part six of Article 75 of this Code, a taxpayer has the right to apply accelerated depreciation, the taxpayer has the right to reduce the tax base, through accelerated depreciation of the undepreciated or residual value of depreciable fixed assets, by up to the amount of the tax base.

The right to accelerated depreciation does not apply to fixed assets unrelated to the receipt of taxable income that were contributed by the taxpayer's founders to its charter fund or authorized capital or transferred under an operating lease.

In each tax period, the tax base may be reduced within the amount of the tax base formed for the tax, but for no more than three years. After the accelerated-depreciation period expires, the depreciable fixed assets are depreciated within the rates established by this Article.

If depreciable fixed assets to which the right to accelerated depreciation was applied are sold, transferred without consideration, or otherwise disposed of during the period for which that right was granted, other than because of a natural disaster, fire, accident, or similar event, the accelerated depreciation is reversed by restoring the tax base in the reporting or tax period in which the asset was disposed of.

The aggregate amount of depreciation charged within the rates under this Article, accelerated depreciation, and the investment deduction calculated under Article 308 of this Code may not exceed the depreciable amount.

Article 307. Expenses for the Amortization of Intangible Assets

For the purposes of taxation, intangible assets are treated as results of intellectual activity and other objects of intellectual property (exclusive rights thereto) used in the production of goods (in the rendering of services) or for the administrative and management needs of the taxpayer over a long period of time (exceeding twelve months in duration).

Intangible assets include, in particular, the assets referred to in part one of Article 44 of this Code, on condition that the taxpayer holds exclusive rights thereto.

For recognition of an intangible asset, the following are required:

• the capability to bring economic benefits (income) to the taxpayer;
• the existence of duly executed documents confirming the existence of the intangible asset itself and/or the exclusive right of the taxpayer to results of intellectual activity (including patents, certificates, other protective documents, and an assignment (acquisition) agreement for a patent or trademark).

The useful life of an intangible asset is determined on the basis of the term of validity of the patent, certificate, and/or other restrictions on the period of use of objects of intellectual property in accordance with the legislation of the Republic of Uzbekistan or the applicable legislation of a foreign state, or on the basis of the useful life of the intangible assets as determined by the relevant agreements.

Amortization on intangible assets is calculated monthly at rates calculated by the taxpayer on the basis of their initial value and the useful life of the intangible asset, but not exceeding the period of the taxpayer's activity.

For intangible assets in respect of which it is impossible to determine the useful life, depreciation rates are established calculated for five years.

Periodic (current) payments made by the taxpayer for the use of, or the right to use, any intangible asset covered by this Article are treated as expenses and are attributed to deductions on a straight-line basis over the period of use, subject to the conditions set out in part two of Article 305 of this Code.

Article 308. Investment Deduction

In the manner and on the conditions established by this Article, a taxpayer is entitled to apply investment deductions for depreciable assets that are depreciated on the basis of the initial value of the asset as determined in accordance with Article 306 of this Code.

An investment deduction is treated as a depreciation expense.

An investment deduction is applied in the amount of:

1. 20 percent of the value of new technological equipment, expenses for modernization, technical and/or technological re-equipment of production, and/or the amount of funds allocated for the acquisition of domestically produced software within the framework of investment projects for the creation of information systems;

2. 10 percent of the amount of funds allocated for the expansion of production in the form of new construction and the reconstruction of buildings and structures used for production needs.

An investment deduction is not granted in respect of expenses that are not deductible in accordance with paragraph 17 of Article 317 of this Code.

The investment deduction is applied in the reporting (tax) period in which new technological equipment is put into operation, or in which modernization, technical and/or technological re-equipment of own production, expansion of production in the form of new construction, reconstruction of buildings and structures used for production needs, or domestically produced software within the framework of investment projects for the creation of information systems is carried out.

For the purposes of this Article, new technological equipment is treated as machinery and equipment (including transport equipment) used by the taxpayer in the process of producing goods (services), from the date of manufacture of which not more than three years have passed.

Where a depreciable asset is sold, transferred free of charge, or otherwise disposed of within three years from the date of application of the investment deduction in respect of that asset, the investment deduction is cancelled by deducting it from the amount of accumulated amortization in the reporting (tax) period in which the disposal of that asset occurred.

The provisions of part seven of this Article do not apply to cases of disposal of a depreciable asset in connection with extraordinary circumstances (natural disaster, fire, accident, and other similar circumstances), or in cases where the initial value of the depreciable asset could have been fully amortized at the rates established by Article 306 of this Code before the date of its disposal.

Article 311. Expenses for Geological Study, Exploration, and Preparatory Work for the Extraction of Natural Resources

Expenses actually incurred by a subsoil user before extraction begins for geological study, exploration, and preparatory work for the extraction of commercial minerals, including appraisal and development expenses and other expenses deductible under this Code, form a separate group of depreciable assets. In the cases provided for by this Code, such costs are charged to expenses within the established limits.

[Part one of Article 311 as revised by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021; National Database of Legislation, December 30, 2021, No. 03/21/741/1219.]

During the extraction of commercial minerals at a deposit, stripping costs incurred at that deposit form a separate group of depreciable assets, calculated in proportion to volumes by stage or ore-body component in accordance with the project's feasibility study and the taxpayer's accounting policy for tax purposes.

The expenses specified in parts one and two of this Article are deducted from the taxpayer's total income as depreciation deductions from the commencement of commercial-mineral extraction or completion of the stripping work.

The annual amount of depreciation deductions is calculated monthly in equal installments by applying a depreciation rate selected by the taxpayer:

not exceeding 15 percent of the accumulated expenses in the depreciable-asset group provided for in part one of this Article;

not exceeding 33 percent of the accumulated expenses in the depreciable-asset group provided for in part two of this Article.

[Parts two and three of Article 311 replaced by parts two, three, and four by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

If an unproductive well is abandoned, or if the taxpayer decides to terminate work on a subsoil plot because it is economically impracticable, geologically unpromising, or for other reasons, the taxpayer may, provided that its right to use the subsoil is fully terminated, deduct the expenses incurred in the reporting or tax period in which that right terminates.

Article 312. Expenses for Scientific Research and/or Experimental-Design Work

For the purposes of this Section, expenses for scientific research are treated as expenses relating to original and planned investigations undertaken with the aim of obtaining new scientific or technical knowledge and ideas.

For the purposes of this Section, expenses for experimental-design work are treated as expenses relating to the creation of new, or the improvement of existing, products (goods, services), new or improved technologies, and methods for the organization of production and management.

Expenses for scientific research and experimental-design work include all costs directly connected with scientific research and experimental-design activities or that may reasonably be attributed to those types of activities.

Taxpayer expenses for scientific research and/or experimental-design work, excluding expenses for the acquisition of depreciable assets, are deducted applying a coefficient of 2, irrespective of the results of the relevant scientific research and/or experimental-design work, in the manner prescribed by this Article, upon completion of such research or work (individual stages of services) and/or upon signing by the parties of the delivery and acceptance certificate.

Where, as a result of expenses incurred for scientific research and/or experimental-design work, the taxpayer obtains exclusive rights to results of intellectual activity, those rights are treated as intangible assets. In that case, those expenses are deducted in the manner prescribed by Article 307 of this Code.

The provisions of this Article do not apply to the recognition, for tax purposes, of the expenses of taxpayers that carry out scientific research and/or experimental-design work under a contract as performer (contractor or subcontractor).

Article 313. Bad-Debt Expenses

For purposes of this Article, a debt is bad if it cannot be repaid because the obligation has terminated by a court decision, the debtor has been declared bankrupt or liquidated, the debtor has died, or the limitation period has expired.

[Part one of Article 313 as revised by Law of the Republic of Uzbekistan No. ZRU-911 of February 21, 2024; National Database of Legislation, February 22, 2024, No. 03/24/911/0142.]

A taxpayer may deduct bad debts associated with taxable income received in previous reporting or tax periods.

A bad-debt deduction is permitted only if the debt has been written off and reflected in the taxpayer's financial statements.

Article 315. Expenses for Formation of Reserve Funds

Banks and non-bank credit organizations, and insurance organizations create reserve funds in accordance with the requirements of legislation.

Allocations to the reserve funds provided for in part one of this Article are expensed in the manner provided for by legislation, within the following norms:

• for banks: in an amount not exceeding 80 percent of the norm established by legislation;
• for non-bank credit organizations and insurance organizations: in an amount not exceeding the norms provided for by legislation.

The provisions of parts one and two of this Article do not apply to cases of creating reserve funds formed from net profit.

Actual expenses for which the reserve fund was formed are written off against the amount of the created reserve.

Article 317. Nondeductible Expenses

Expenses that are not deductible in determining the tax base include:

1. losses of goods exceeding the rates of natural loss of inventory established by the authorized body in accordance with legislation or, if no such rates exist, by the taxpayer;

2. expenses for providing premises free of charge to food-service enterprises or other third-party organizations, and payment of utility costs for those enterprises and organizations;

3. taxpayer expenses constituting an individual's income in the form of a material benefit under Article 376 of this Code, except expenses for purchasing tickets for its employees and their close relatives to attend cultural, mass, concert, and entertainment events, in an amount not exceeding 0.5 percent of income from the sale of goods or services;

[Item 3 of Article 317 as revised by Law of the Republic of Uzbekistan No. ZRU-785 of July 26, 2022; National Database of Legislation, July 27, 2022, No. 03/22/785/0679.]

4. field allowances and payments for an employee's use of a personal motor vehicle for business purposes exceeding the limits established by legislation;

5. pension supplements and additional pension payments;

6. financial assistance specified in the fourth and fifth textual paragraphs of item 10 of part one of Article 377 of this Code;

7. expenses for charitable assistance, except funds used to provide patronage support; sponsorship for elderly persons living alone, other elderly persons living alone, and persons with disabilities who need outside care; financial assistance to educational institutions, orphaned children, and children deprived of parental care; and funds donated to the Public Fund for the Support of Children;

[Item 7 of Article 317 as revised by Law of the Republic of Uzbekistan No. ZRU-977 of October 18, 2024; National Database of Legislation, October 19, 2024, No. 03/24/977/0831.]

8. compensation payments for environmental pollution and waste disposal exceeding the limits established by legislation;

9. expenses for remedying deficiencies in designs and construction and installation work; damage and deformation occurring during transportation to the on-site warehouse; inspection involving disassembly of equipment necessitated by defects in corrosion protection; and other similar expenses, to the extent they cannot be recovered from the supplier or other business entities responsible for the deficiencies, damage, or losses;

10. losses from theft and shortages where the responsible persons have not been identified or the necessary amounts cannot be recovered from the responsible party;

11. taxes paid for other persons;

12. additional taxes and levies assessed as a result of tax audits;

13. expenses for activities unrelated to the taxpayer's business activity, including health protection, sports and cultural events, recreation, and similar activities, except where legislation imposes on the taxpayer a duty to conduct those activities;

14. assistance provided to trade-union committees;

15. costs of providing services unrelated to the production of goods, including urban and community improvement services, assistance to agriculture, and other types of services;

16. expenses associated with income that is not subject to taxation, except as provided in this Section;

17. expenses on transactions conducted without services actually being provided or goods being shipped, where that fact has been established by a final and binding court decision identifying the taxpayer that incurred the expenses;

18. expenses unrelated to an activity aimed at earning income, unless legislation requires the taxpayer to incur them;

19. late-payment interest, fines, and other sanctions payable or paid into the budget system;

20. costs of acquiring, producing, constructing, assembling, or installing depreciable assets and other costs included in their value, including costs incurred for completion, additional fitting-out, reconstruction, modernization, or technical re-equipment and charged to expenses through depreciation deductions;

21. taxpayer costs included, under Article 306 of this Code, in the historical cost of nondepreciable property;

[Item 21 of Article 317 as revised by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021; National Database of Legislation, December 30, 2021, No. 03/21/741/1219.]

22. the amount by which expenses for which this Code establishes limits on recognition exceed the maximum amount calculated by applying those limits;

23. contributions to reserves, reserve funds, and other funds whose formation is not provided for by this Section and/or required by legislation, except expenses within the limits provided for by Articles 315, 316, and 326 of this Code;

24. dividends accrued by the taxpayer;

25. voluntary-insurance contributions paid by the taxpayer for the benefit of other persons;

26. interest and individual costs accrued by the taxpayer in excess of the amounts recognized as expenses for tax purposes under Article 310 of this Code;

27. the value of property or services transferred without consideration and expenses associated with the transfer, including value-added tax, except property transferred by decision of the President of the Republic of Uzbekistan or the Cabinet of Ministers of the Republic of Uzbekistan, and except the transfer of technical equipment for operational-search measures on telecommunications networks and the provision of services for its operation and maintenance;

28. expenses incurred by the settlor of a trust in performing the trust agreement if the settlor is not a beneficiary under that agreement;

29. contributions, fees, and other payments made to nonprofit and international organizations, except where payment is prescribed by legislation, including the legislation of foreign states, and/or is a condition for conducting the activities of the taxpayers that made the payments or a condition for those organizations to provide services necessary for the taxpayer's activities;

30. costs incurred from reserves created by the taxpayer where the expenses of creating those reserves were deducted under the procedure established by this Code or other legislative acts;

31. amounts of property write-downs or impairment;

32. losses incurred by partners or participants under a simple partnership agreement upon the return of a share in the common property of the partners or participants or upon division of that property;

33. funds transferred by a member of a consolidated group of taxpayers to the responsible member of that group for payment of tax, advance or current payments, late-payment interest, or fines under the procedure established by this Code for a consolidated group of taxpayers, and funds transferred by the responsible member to a member of the group in connection with an adjustment of the amounts of tax, advance or current payments, late-payment interest, or fines payable for that consolidated group;

34. losses from writing off inventories because they are unfit for use, including expiration of storage periods, physical and/or functional obsolescence, and similar causes, except losses arising from emergencies such as a natural disaster, fire, accident, or traffic accident;

35. interest on overdue or deferred credits or loans exceeding the rates specified in the credit agreement for debt that is not overdue;

36. fines, late-payment interest, and other sanctions paid or recognized for breach of commercial contracts.

[OKOZ classification: 1.07.00.00.00 Legislation on Finance and Credit; Banking Activity / 07.10.11.00 (no longer in force) Special Taxation Rules for Certain Categories of Legal Entities / 07.90.00.00 (no longer in force) National Taxes.]

Chapter 45. Special Rules for Determining the Tax Base for Certain Taxpayers and Types of Transactions

Article 320. Special Considerations for the Taxation of Exchange Rate Differences

For the purposes of this Chapter, a positive exchange rate difference is an exchange rate difference arising upon the upward revaluation of property in the form of currency valuables (excluding securities denominated in foreign currency) and receivables whose value is expressed in foreign currency, or upon the downward revaluation of liabilities whose value is expressed in foreign currency.

For the purposes of this Chapter, a negative exchange rate difference is an exchange rate difference arising upon the downward revaluation of property in the form of currency valuables (excluding securities denominated in foreign currency) and receivables whose value is expressed in foreign currency, or upon the upward revaluation of liabilities whose value is expressed in foreign currency.

The provisions of this Article apply where the upward or downward revaluation referred to above is carried out in connection with a change in the official rate of foreign currency against the national currency of the Republic of Uzbekistan established by the Central Bank of the Republic of Uzbekistan, or in connection with a change in the rate of foreign currency (notional monetary units) against the national currency of the Republic of Uzbekistan established by legislation or the agreement of the parties, where the value of receivables (liabilities) expressed in that foreign currency (notional monetary units) and payable in the national currency of the Republic of Uzbekistan is determined at the rate established by legislation or the agreement of the parties, respectively.

A positive exchange rate difference is included in aggregate income; a negative exchange rate difference is included in expenses.

For tax purposes, a positive (negative) exchange rate difference arising from the revaluation of advances issued (received) is not taken into account.

Article 323. Special Rules for Recognizing Income and Expenses upon the Acquisition of an Enterprise as a Property Complex

For purposes of this Section, the difference between the acquisition price of an enterprise as a property complex and the value of its net assets as a property complex, meaning assets less liabilities, is recognized as an expense or income of the taxpayer under the procedure established by this Article. That difference, in the form of a price premium if positive or a price discount if negative, is determined on the basis of the deed of transfer.

When an enterprise as a property complex is acquired through privatization at auction or by competitive tender, the premium paid, or discount received, by the purchaser is the difference between the purchase price and the appraised initial value of the enterprise as a property complex.

The amount of the premium paid, or discount received, by the purchaser is accounted for tax purposes as follows:

1. a premium paid by the purchaser of an enterprise as a property complex is recognized as its expense in equal installments over five years beginning with the month following the month in which the purchaser's ownership right to the enterprise as a property complex is registered by the state;

2. a discount received by the purchaser of an enterprise as a property complex is recognized as its income in the month in which the transfer of ownership of the enterprise as a property complex is registered by the state.

A loss incurred by the seller from the sale of an enterprise as a property complex is accounted for tax purposes under the procedure established by Chapter 46 of this Code.

[Article 324 repealed by Law of the Republic of Uzbekistan No. ZRU-1057 of April 17, 2025.]

Article 325. Special Considerations Relating to Taxation in the Context of Securities Lending Operations

Taxation of participants in securities loan operations which have been carried out in the manner prescribed by Article 53 of this Code must take into account the special considerations established by this Article. When securities are loaned and when loaned securities are returned, a financial result for taxation purposes is not determined, except in cases established by this Article. In this respect, expenses associated with the acquisition of securities transferred under a loan agreement must be taken into account by the lender when the securities in question are subsequently (after the return of the loan) sold (disposed of), with account taken of the provisions of this Code. Taxpayers must maintain separate tax recording of securities transferred (received) in the framework of loans with securities. Analytical recording on loans with securities must be maintained with respect to each granted (received) loan. In the context of a loan agreement, payments on securities the right to receive which arises during the effective period of the loan agreement must not be deemed to be income of the borrower and must be included in the lender’s income. Interest (coupon) income must be taken into account in calculating the lender’s tax base in accordance with the procedure established by this Section and must not be taken into account in determining the borrower’s tax base for interest (coupon) income on the securities that are the subject of the loan. Where a loan agreement has been concluded between a non-resident (the lender) and a legal entity which is a tax resident of the Republic of Uzbekistan (the borrower), and during the effective period of the loan agreement interest (discount) income is paid on the securities or dividends are paid on the shares (depositary receipts conferring the right to receive dividends) which are the object of the loan, such a borrower must be deemed to be a tax agent in relation to the dividend income or interest (discount) income. Interest receivable by the lender under a loan agreement must be recognised as income of the lender which is taken into account in accordance with this Section. Interest payable by the borrower under a loan agreement must be recognised as an expense of the borrower which is taken into account in accordance with this Section.

Article 327. Special Features of Determining the Tax Base for Transactions with Securities

A taxpayer's income from transactions involving the sale or other disposal of securities (including from the redemption or partial redemption of their nominal value) is determined on the basis of the sale price or other disposal price of the security, the amount of accumulated interest (coupon) income paid to the taxpayer by the purchaser, and the amount of interest (coupon) income paid to the taxpayer by the issuer (drawer of the bill). Amounts of interest (coupon) income previously taken into account for taxation are not included in a taxpayer's income from the sale or other disposal of securities.

A taxpayer's expenses on the sale or other disposal (including the redemption or partial redemption of nominal value) of securities, including investment units in a mutual investment fund, are determined on the basis of the acquisition price of the security (including acquisition expenses), the costs of its sale, the amount of discounts on the reference value of investment units, and the amount of accumulated interest (coupon) income paid by the taxpayer to the seller of the security. Amounts of accumulated interest (coupon) income previously taken into account for taxation are not included in expenses.

For the purposes of this Chapter, securities are also treated as sold (acquired) in the following cases:

1. where the taxpayer's obligations to transfer (accept) the relevant securities are terminated by the offsetting of homogeneous counter-claims, including where such obligations are terminated through clearing in accordance with the legislation;

2. where counter-claims arising from contracts concluded on the terms of organized trading rules or clearing rules are offset, where such offsetting is carried out for the purpose of determining the amount of a net obligation.

Where a transaction involving circulating securities is concluded, the transaction date is the date of the trading session at which the relevant transaction in the security was concluded.

Where a transaction involving circulating securities is concluded outside the organized securities market, the transaction date is the date of the agreement establishing all material conditions of the transfer of the security.

A taxpayer that is a shareholder selling shares received upon the increase of the authorized fund (authorized capital) of a joint-stock company determines income as the difference between the sale price and the originally paid-in value of the share, adjusted to reflect the change in the number of shares resulting from the increase of the authorized fund (authorized capital).

Upon the sale or other disposal of securities, the taxpayer independently, in accordance with its adopted tax-accounting policy, selects one of the following methods of charging the value of the disposed-of securities to expenses:

1. by the value of those first acquired in time (FIFO);

2. by unit value.

For the purposes of this Article, accumulated interest (coupon) income means that portion of the interest (coupon) income whose payment is provided for by the conditions of issue of the security, calculated in proportion to the number of calendar days elapsed from the date of issue of the security or the date of payment of the preceding coupon income to the date of transfer of the security.

The tax base for transactions with securities is determined by the taxpayer separately. Taxpayers determine the tax base for transactions with securities circulating on the organized securities market separately from the tax base for transactions with securities not circulating on the organized securities market.

Taxpayers that have incurred a loss (losses) from transactions with securities in preceding tax periods are entitled to reduce the relevant tax base from transactions with securities in the reporting (tax) period (carry forward the specified losses) in the manner and on the conditions established by Article 336 of this Code.

Losses from transactions with securities not circulating on the organized securities market, incurred in preceding tax periods, may be applied to reduce the tax base from transactions with such securities determined in the reporting (tax) period.

Losses from transactions with securities circulating on the organized securities market, incurred in preceding tax periods, may be applied to reduce the tax base from transactions involving the sale of that category of securities determined in the reporting (tax) period.

During the tax period, the carrying forward of losses incurred in the relevant reporting period from transactions with securities circulating on the organized securities market and from transactions with securities not circulating on the organized securities market is carried out separately for the specified categories of securities, respectively, within the profits received from transactions with such securities.

Income from transactions with securities circulating on the organized securities market may not be reduced by expenses or losses from transactions with securities not circulating on the organized securities market.

Income from transactions with securities not circulating on the organized securities market may not be reduced by expenses or losses from transactions with securities circulating on the organized securities market.

The seller (except the issuer) pays levies to the authorized state body for the regulation of the securities market upon concluding the following transactions:

(a) on organized over-the-counter trading in securities, at a rate of 0.3 percent of the transaction amount;

(b) on exchange trading in emissive securities, at a rate of 0.01 percent of the transaction amount.

The income of the seller, including a nonresident of the Republic of Uzbekistan, from the transactions referred to in part sixteen of this Article is not subject to profit tax or personal income tax.

For the purposes of this Article, the market quotation of a security means:

1. for securities admitted to trading through a trade organizer in the Republic of Uzbekistan (including an exchange), the weighted-average price of the security in transactions concluded during the trading day through that trade organizer;

2. for securities admitted to trading through a foreign trade organizer (including an exchange), the closing price of the security calculated by that trade organizer on the basis of transactions concluded through it during the trading day.

Where transactions in one and the same security have been concluded through two or more trade organizers, the taxpayer is entitled to independently select the market quotation formed with one of the trade organizers.

Where a trade organizer does not calculate the weighted-average price, the weighted-average price for the purposes of this Article is taken to be one half of the sum of the highest and lowest prices of transactions concluded during the trading day through that trade organizer.

Where a transaction involving circulating securities is concluded through a trade organizer:

1. the transaction date is the date of the trading session at which the relevant transaction in the security was concluded;

2. the actual price of sale (acquisition) or other disposal of the securities is recognized for taxation purposes.

Where a transaction involving circulating securities is concluded outside the organized securities market (without the participation of a trade organizer):

1. the transaction date is the date of the agreement establishing all material conditions of the transfer of the security;

2. except as otherwise established by this Article, the actual price of sale (acquisition) or other disposal of a circulating security is recognized as the market price of the security for taxation purposes provided that one of the following conditions is met:

where more than one transaction in the security has been registered as at the transaction date, the actual price of the transaction concluded is recognized as the market price of the security provided that, on the transaction date, that price falls within the interval between the highest and lowest prices (the price interval) of transactions in the security registered by the trade organizer(s) on that date;

where one transaction in the security has been registered as at the transaction date, the actual price of the transaction concluded is recognized as the market price of the security if it corresponds to the price of one other transaction in the security on the date of the transaction in respect of which the market price is being determined;

3. for the purposes of applying clause 2 of this part:

the highest and lowest prices of transactions (the price of one transaction) registered by a trade organizer are determined with reference to transactions concluded on the basis of non-addressed orders;

where trade organizers do not have information on the price interval (the price of one transaction) as at the transaction date, the price interval (the price of one transaction) for the sale of those securities according to the data of trade organizers as at the date of the most recent trading session held before the date of the relevant transaction is taken for the purposes of this clause, provided that trading in those securities has taken place at least once through a trade organizer during the three consecutive months preceding the transaction date;

where transactions in one and the same security were concluded on the specified date through two or more trade organizers, the taxpayer is entitled to independently select the trade organizer whose price interval values (the price of one transaction) will be used to determine the price of the security for taxation purposes, except as otherwise established by this clause. Where some of the trade organizers referred to in this part have registered more than one transaction in the security and other trade organizers have registered only one transaction in the security, the taxpayer is entitled to independently select the trade organizer whose price interval values will be used to determine the price of the security for taxation purposes from among the trade organizers that have registered more than one transaction in the security.

Where circulating emissive securities are acquired upon their placement, or upon the first public offering of those securities following their placement, including through a broker providing services in connection with that offering, the actual acquisition price of those securities is recognized as the market price and is taken for taxation purposes.

Where circulating securities are sold at a price below the lowest transaction price on the organized securities market, the lowest transaction price on the organized securities market is taken in determining the financial result.

Where circulating securities are acquired at a price above the highest transaction price on the organized securities market, the highest transaction price on the organized securities market is taken in determining the financial result.

Where only one transaction has been concluded on the organized securities market, the price of that transaction is recognized as the highest (lowest) price.

For transactions involving circulating investment units of an open mutual investment fund, including where such units are acquired from (redeemed through) a management company that carries out trust management of the assets comprising that open mutual investment fund, the actual transaction price is recognized as the market price and is taken for taxation purposes if it equals the reference value of an investment unit determined in the manner established by the legislation on investment funds.

For non-circulating securities, the actual transaction price is recognized as the market price and is taken for taxation purposes if that price falls within the interval between the highest and lowest prices determined on the basis of the reference price of the security and the maximum price deviation, except as otherwise established by this Article.

For the purposes of this Article, the maximum price deviation for non-circulating securities is set at 20 percent above or below the reference price of the security.

Where non-circulating securities are sold at a price below the lowest price determined on the basis of the reference price of the security and the maximum price deviation, the lowest price determined on the basis of the reference price of the security and the maximum price deviation is taken in determining the financial result for taxation purposes.

Where non-circulating securities are acquired at a price above the highest price determined on the basis of the reference price of the security and the maximum price deviation, the highest price determined on the basis of the reference price of the security and the maximum price deviation is taken in determining the financial result for taxation purposes.

The procedure for determining the reference price of securities not circulating on the organized securities market is established for the purposes of this Article by the authorized body for the securities market in agreement with the Ministry of Finance of the Republic of Uzbekistan.

For transactions involving non-circulating investment units in open mutual investment funds, including where such units are acquired from (redeemed through) a management company that carries out trust management of the assets comprising the relevant open mutual investment fund, the actual transaction price is taken for taxation purposes if it equals the reference value of an investment unit determined in the manner established by the legislation on investment funds.

For transactions involving non-circulating investment units in closed and interval mutual investment funds, including where such units are acquired from a management company that carries out trust management of the assets comprising the relevant mutual investment fund, the actual transaction price is taken for taxation purposes if it equals the reference value of an investment unit determined in the manner established by the legislation on investment funds.

Where, in accordance with the legislation on investment funds, the issue, redemption, or exchange of investment units in mutual investment funds restricted in circulation takes place other than at the reference value of an investment unit, the actual transaction price is taken for taxation purposes if it equals the amount of monetary funds for which one investment unit is issued, as determined in accordance with the trust management rules of the mutual investment fund without taking into account the fluctuation limit.

The reference price of non-circulating securities for taxation purposes is determined as at the date of the agreement establishing all material conditions of the transfer of the security.

The reference price of non-circulating investment units for taxation purposes is determined as at the most recent preceding date on which the reference value of the investment unit is determined, that is closest to the transaction date.

Article 333. Carry-Forward of Losses

A taxpayer's loss is recognized as the excess of deductible expenses over aggregate income, taking into account adjustments to income and expenses provided for in this Section.

Losses from transactions involving traded securities and traded financial instruments of forward transactions are recognized as losses from business activities.

A taxpayer that incurred a loss (losses) calculated in accordance with part one of this Article in the preceding tax period (periods) is entitled to reduce the profit of the current tax period by the full amount of the loss incurred, or by a part of that amount.

The tax base may be reduced by the amount of loss incurred in the preceding tax period (periods) only based on the results of the current tax period.

Losses incurred in more than one calendar year are carried forward in the order in which they were incurred.

Losses incurred by a subsidiary of a bank that acquires bad debts from the parent bank may not be carried forward.

Special rules for carrying forward losses in individual cases are provided for by Articles 334–336 of this Code.

Article 335. Carry-Forward of Losses in a Consolidated Group of Taxpayers

The provisions of Article 333 of this Code with respect to a consolidated group of taxpayers are applied taking into account the special rules established by this Article.

Where a consolidated group of taxpayers incurred a loss (losses) in the preceding tax period (periods), the responsible member of that group is entitled to reduce the consolidated tax base for the current tax period by the full amount of the loss, or by a part of that amount.

After a member of a consolidated group of taxpayers has withdrawn from that group (or after the group has ceased to operate), that member:

1. may not reduce the tax base for the current tax period by the amount (or a part of the amount) of a loss incurred by that group during the period of its operation;

2. is entitled to reduce the tax base for the current tax period by the amount (or a part of the amount) of a loss incurred by that member for tax periods in which it was not a member of the consolidated group of taxpayers, in the manner and subject to the conditions provided for by this Article.

Where a member of a consolidated group of taxpayers was reorganized in the form of a merger or acquisition during the period of its membership of that group, after withdrawing from that group (or after the group has ceased to operate), that member is also entitled to reduce the tax base for the current tax period by the amount (or a part of the amount) of losses incurred by reorganized taxpayers of which it is the legal successor, for tax periods in which those reorganized taxpayers were not members of the consolidated group of taxpayers, in the manner and subject to the conditions provided for by this Article.

Where a member of a consolidated group of taxpayers was newly established during the period of its membership of that group by means of the demerger of a legal entity, after withdrawing from that group (or after the group has ceased to operate), that member is also entitled to reduce the tax base for the current tax period by the amount (or a part of the amount) of losses incurred by the reorganized taxpayer of which it is the legal successor, for tax periods in which that reorganized legal entity was not a member of the consolidated group of taxpayers, in the manner and subject to the conditions provided for by this Article, taking into account Article 92 of this Code.

Article 336. Special Rules for Carrying Forward Losses from Certain Types of Operations

A loss incurred from the sale or other disposal of a participation interest in the authorized fund (authorized capital) of a legal entity, or in an enterprise as a property complex, is compensated from income received from the sale (disposal) of assets similar to those sold (disposed of).

Losses incurred under a trust management agreement are not taken into account in determining the tax base of the founder or beneficiary of the trust management. Such losses are carried forward against future income from that trust management.

Losses incurred by partners (participants) from participation in a simple partnership agreement (joint activity agreement) are carried forward, at the authorized person, against future income from that simple partnership.

Losses from service facilities are determined cumulatively and are not taken into account in determining the tax base from business activities. Such losses are carried forward against future income from those service facilities.

Losses from transactions with non-traded securities and non-traded financial instruments of forward transactions are determined separately and are compensated from income received from similar transactions within each tax base.

Article 337. Tax Rates

Tax rates are established as follows:

The taxpayers specified in item 2 of part one of this Article apply the prescribed tax rate to all types of activity.

The taxpayers specified in item 3 of part one of this Article may apply a 0 percent tax rate to all types of activity if income from the sale of agricultural products of their own production exceeds 90 percent of total income.

If a taxpayer conducting activities in the social sphere fails to meet the criteria established by Article 59 of this Code, the tax rate established by item 12 of part one of this Article applies from the beginning of the tax period in which the failure occurred, and amended tax returns must be filed for the preceding reporting periods.

[Deletion date for part five of Article 337 under Law of the Republic of Uzbekistan No. ZRU-1108 of December 25, 2025: January 1, 2026.]

Until January 1, 2027, budget-funded organizations receiving income from additional sources may apply the 0 percent tax rate provided that the released funds are used for their designated purpose of strengthening the organizations' material, technical, and social infrastructure and providing financial incentives to their employees under the procedure established by legislation.

[Part six of Article 337 as revised by Law of the Republic of Uzbekistan No. ZRU-1013 of December 24, 2024; National Database of Legislation, December 26, 2024, No. 03/24/1013/1066. This provision also applies to relations arising from January 1, 2024.]

For legal entities in which persons with disabilities constitute more than 3 percent of the average annual workforce, the tax rate is reduced by one percentage point for each percentage point by which the proportion of employed persons with disabilities exceeds the threshold established by this part.

Taxpayers whose total income first exceeded ten billion soums during the current tax period after September 1, 2022, except taxpayers provided for by part thirteen of this Article, may reduce the tax rate established by item 12 of part one of this Article by 50 percent during the current and following tax periods, provided that total income does not exceed one hundred billion soums in the tax periods in which the reduced rate is applied.

The taxpayers specified in part thirteen of this Article may determine the tax base under a simplified procedure at 25 percent of total income.

The tax relief provided for by parts seven and thirteen of this Article does not apply to taxpayers of subsoil-use tax or excise tax, or upon liquidation of the taxpayer and/or discovery that the taxpayer's income from the sale of goods or services was divided or fragmented among two or more business entities for purposes of applying the tax relief.

The 0 percent tax rate provided for by item 10¹ of part one of this Article applies for three years from the month in which the renewable-energy installations are commissioned or, where solar panels are installed together with an electricity-storage system whose capacity is at least 25 percent of the solar-panel capacity, for ten years from the month in which those panels are commissioned.

For taxpayers that introduce the manufacture of products using high-technology production included in a list approved by a resolution of the President of the Republic of Uzbekistan, the 0 percent tax rate provided for by item 10² of part one of this Article applies for three years from the commissioning date of the high-technology production facility, with respect to income from the sale of products manufactured using high technologies.

Increased tax rates may be established by decision of the President of the Republic of Uzbekistan for certain taxpayers conducting commercial-mineral extraction activities.

[Parts eight through fifteen of Article 337 replaced by parts eight through twelve by Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067; effective January 1, 2025.]

Turnover-tax payers that first transition to payment of this tax beginning on January 1, 2026, are exempt from payment of the tax, except on dividend and interest income, for one tax period following the year of transition. This rule does not apply to reorganized taxpayers.

Article 340. Procedure for Payment of Tax

Tax is paid for a reporting or tax period no later than the deadline for filing the tax return for that period, unless otherwise provided by this Article.

Taxpayers whose total income, taking adjustments into account, for the tax period preceding the current tax period exceeds twenty billion soums make monthly advance payments, calculated under parts three through six of this Article, no later than the twenty-third day of each month of the reporting period.

The monthly advance payment due in the first quarter of the current tax period equals the monthly advance payment due from the taxpayer in the last quarter of the preceding tax period.

The monthly advance payment due in the second quarter of the current tax period equals one third of the amount of tax calculated in the tax return for the first reporting period of the current year.

The monthly advance payment due in the third quarter of the current tax period equals one third of the difference between the tax calculated in the tax return for the half-year and the tax calculated for the first quarter.

The monthly advance payment due in the fourth quarter of the current tax period equals one third of the difference between the tax calculated in the tax return for the nine-month period and the tax calculated for the half-year.

If a monthly advance payment calculated under parts three through six of this Article is negative or zero, no such payments are made in the relevant quarter.

Taxpayers, including newly established taxpayers, whose total income exceeds twenty billion soums during the current reporting period begin making monthly advance payments after the end of the full quarter in which the threshold was exceeded.

A legal entity newly established through a reorganization by division or separation makes monthly advance payments during the next two reporting periods regardless of its total income if the legal entity reorganized by division or separation calculated monthly advance payments of tax in the tax period in which the reorganization occurred.

At the end of the reporting or tax period, monthly advance payments made during that period are offset against the tax calculated in the tax return for the period.

Monthly advance payments are calculated by the tax authorities. The taxpayer may, however, submit to the tax authorities, no later than the fifteenth day of the first month of the following quarter, a statement of advance payments based on the expected amount of profit in the current quarter. If the expected profit is understated without justification, the tax authorities may amend the taxpayer's statement of advance tax payments.

[Part eleven of Article 340 as revised by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

Regardless of the amount of their total annual income, taxpayers that file a tax return for the tax only at the end of the tax period do not make monthly advance payments.

Upon liquidation of a taxpayer, the tax must be paid before liquidation is completed.

When a decision is made to liquidate a legal entity, the tax authority suspends the accrual of monthly advance payments beginning with the month in which it receives that information from the registration authority.

If activity resumes and the liquidation process is terminated, accrual of monthly advance payments resumes from the month in which it was suspended.

Article 343. Special Rules for Taxing Dividend Income

Dividends paid by a legal entity to a tax resident of the Republic of Uzbekistan are taxed at source under the procedure provided by Article 345 of this Code and are deductible by the recipient in determining its tax base.

[Part one of Article 343 as revised by Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067; effective January 1, 2026.]

If dividends are paid to a tax resident of the Republic of Uzbekistan by a legal entity that is a nonresident of the Republic of Uzbekistan, the recipient independently determines the tax payable on the dividends based on the amount received and the tax rate established by item 11 of part one of Article 337 of this Code. The dividend recipient may not reduce the tax calculated under this Article by tax paid at the location of the income source, unless otherwise provided by an international treaty of the Republic of Uzbekistan.

Article 347. Determination of Taxable Income

A nonresident conducting activities through a permanent establishment independently calculates and pays tax on its income under the procedure established by Chapters 43 through 47 of this Code, taking into account the special rules provided by this Chapter.

The duties of a nonresident taxpayer conducting activities through a permanent establishment that must be performed under this Chapter may be assigned to its permanent establishment. The permanent establishment is then vested with all taxpayer rights.

The total income of a permanent establishment consists of the following types of income connected with its activities and received from the date on which activity in the Republic of Uzbekistan commenced:

1. income received by the nonresident from conducting activities in the Republic of Uzbekistan through its permanent establishment;

2. income of the nonresident from the ownership, use, and/or disposition of property of that nonresident's permanent establishment in the Republic of Uzbekistan;

3. income of the nonresident, including income of its structural subdivisions in other states, from activities conducted in the Republic of Uzbekistan that are identical or similar to those conducted through the permanent establishment of that nonresident legal entity in the Republic of Uzbekistan;

4. other income from sources in the Republic of Uzbekistan specified in Article 351 of this Code and attributable to the permanent establishment;

5. income from sources outside the Republic of Uzbekistan connected with the activities of the permanent establishment.

If a nonresident conducts business activities both in and outside the Republic of Uzbekistan under a single project or related projects performed jointly with its permanent establishment in the Republic of Uzbekistan, the income of that permanent establishment is the income it could have earned if it were a separate and independent person engaged in the same or identical activities under the same or similar conditions and dealing independently with the nonresident whose permanent establishment it is.

If goods or services produced by a nonresident's permanent establishment in the Republic of Uzbekistan are sold by another structural subdivision of the nonresident located outside the Republic of Uzbekistan, the income of the permanent establishment is the income it could have earned if it were a separate and independent person engaged in the same or identical activities under the same or similar conditions and dealing independently with the nonresident whose permanent establishment it is.

If a nonresident conducts preparatory and/or auxiliary activities in the Republic of Uzbekistan for third parties that result in the formation of a permanent establishment, and no remuneration is provided for those activities, the tax base is 20 percent of the permanent establishment's expenses connected with those activities.

Exchange differences arising under accounting legislation on liabilities of a nonresident's permanent establishment in the Republic of Uzbekistan to the head office or other structural subdivisions of that nonresident are not included in the income or expenses of the permanent establishment.

If a nonresident has more than one establishment in the Republic of Uzbekistan through which activity results in the formation of a permanent establishment, the tax base and amount of tax are calculated separately for each establishment.

The net profit remaining at the disposal of a nonresident conducting activities through a permanent establishment after payment of tax is treated as dividends and taxed at the rate established by item 1 of Article 353 of this Code.

For purposes of part nine of this Article, a nonresident conducting activities through a permanent establishment may apply a reduced rate provided by an international treaty of the Republic of Uzbekistan for dividend income under the procedure specified in Article 357 of this Code. If an international tax treaty of the Republic of Uzbekistan provides several reduced rates for dividend income, the lowest rate applies.

[Article 347 supplemented by part ten by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

Net profit means the difference between total income and expenses connected with the activities of the permanent establishment. Net profit for the current tax period is reduced by the aggregate amount of losses incurred in previous tax periods within the same permanent establishment, provided those losses were not previously taken into account in determining net profit.

The calculated tax on net profit is paid into the budget no later than the deadline for filing the tax return.

[Article 347 supplemented by parts nine through eleven by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021; National Database of Legislation, December 30, 2021, No. 03/21/741/1219.]

Article 348. Determination of Deductible Expenses

Permanent establishment must deduct expenses, which are directly related to the receipt of taxable income from activities in the Republic of Uzbekistan through a permanent establishment upon determination of the tax base, irrespective of whether they are incurred in the Republic of Uzbekistan or abroad, excluding expenses, which are not deductible in accordance with this Code. Amounts must also not be deductible which are paid to a non-resident of the Republic of Uzbekistan by its permanent establishment in the form of:

1. royalties, fees, rewards and other payments for the use or granting the right to use the property or intellectual property of this non-resident;
2. expenses for services rendered by this non-resident to a permanent establishment;
3. remuneration for loans provided by this non-resident to a permanent establishment;
4. expenses which are not related to the receipt of income from the activities of this non-resident through a permanent establishment in the Republic of Uzbekistan;
5. management and general administrative expenses of this non-resident, determined by part four of this Article, which are not related to the implementation of activities in the Republic of Uzbekistan through a permanent establishment. Where the provisions of the applicable international treaty of the Republic of Uzbekistan allow the deduction of management and general administrative expenses of this non-resident upon the determination of the taxable income of a permanent establishment of a non-resident of the Republic of Uzbekistan, the amount of such expenses must be determined by that a non-resident at its choice by one of the following methods:
6. the method of proportional distribution of expenses;
7. the method of direct deduction of expenses. For the purposes of part three of this Article, management and general administrative expenses of a non-resident must be deemed expenses with respect to the management and remuneration of management personnel who is not connected with the production process. In this respect, the management and general administrative expenses of this non-resident must not include:
8. management and general administrative expenses incurred directly by a permanent establishment of a non-resident in the Republic of Uzbekistan or a representative office of a non-resident in the Republic of Uzbekistan, which are deducted in accordance with this Section of the Code;
9. management and general administrative expenses incurred directly by the representative office or permanent establishments of a non-resident in other states, which are not connected with the activities of a permanent establishment registered as a taxpayer in the Republic of Uzbekistan;
10. management and general administrative expenses which are not connected with the activities of a permanent establishment registered in the Republic of Uzbekistan. A non-resident must apply only one of the methods of deducting management and general administrative expenses of a permanent establishment during the reporting tax period at his choice, which must be indicated in the appendix to tax reporting. Management and general administrative expenses of a non-resident must be deducted by a permanent establishment in the Republic of Uzbekistan in accordance with the procedure established by the Cabinet of Ministers of the Republic of Uzbekistan.

Article 351. General Provisions

Tax on income received by a nonresident from sources in the Republic of Uzbekistan that is not connected with a permanent establishment is calculated and withheld by the tax agent paying the income to the nonresident. Tax is withheld from the taxpayer's income each time such income is paid.

Such income includes, in particular:

1. dividends received from legal entities of the Republic of Uzbekistan;

2. interest on debt obligations of the Republic of Uzbekistan, including government securities whose terms of issue and circulation provide for interest income. Income from government bonds and other government securities of the Republic of Uzbekistan, and income from international bonds of legal entities of the Republic of Uzbekistan, is not subject to tax;

3. interest on debt obligations of any kind, including profit-participating bonds and convertible bonds, received from legal entities of the Republic of Uzbekistan and individual entrepreneurs;

4. royalties for the use in the Republic of Uzbekistan, or the granting of rights to use, any intangible asset;

5. income from the disposal of:

a) shares, other than shares sold on a stock exchange, and interests or participatory shares in the charter fund or authorized capital of legal entities resident in the Republic of Uzbekistan;

b) immovable property located in the Republic of Uzbekistan;

c) an enterprise as a property complex located in the Republic of Uzbekistan;

d) investment units in unit investment funds established under the legislation of the Republic of Uzbekistan.

Special rules for taxing such income are established by Article 356 of this Code;

6. income from the sale of goods owned by a nonresident and sold through a resident of the Republic of Uzbekistan under a commission, agency, or other similar civil-law agreement in the course of foreign-trade activity.

The income specified in this item is the excess of the amount received by the nonresident for the goods sold over their documented acquisition cost. If documents confirming the acquisition cost of the goods are unavailable, tax is withheld from the entire amount received by the nonresident;

7. insurance premiums paid under contracts for the insurance, coinsurance, and reinsurance of risks arising in the Republic of Uzbekistan;

8. income from providing telecommunications services for international communications for which residents of the Republic of Uzbekistan pay for the transmission, receipt, and processing of signs, signals, texts, images, and sounds through wired, radio, optical, or other electromagnetic systems;

9. international transportation services, including charges under the contract of carriage for loading, transshipment, unloading, and stowage of cargo.

International transportation means any carriage of passengers, baggage, or goods, including mail, by river vessel, aircraft, road transport, or rail between points located in different states, one of which is the Republic of Uzbekistan.

For purposes of this item, transportation exclusively between points outside the Republic of Uzbekistan, or exclusively between points within the Republic of Uzbekistan, is not international transportation;

10. income from leasing or subleasing property used in the Republic of Uzbekistan, including income from leasing operations and from leasing or subleasing river vessels, aircraft and/or other means of transport, and containers;

11. freight-forwarding services in international transportation and transportation within the Republic of Uzbekistan.

The taxable income is the remuneration calculated as the positive difference between the amount received from the consignor or consignee and the amount payable to the carrier, as confirmed by the carrier's relevant primary documents. If the carrier's relevant primary documents are unavailable, the entire amount paid to the nonresident of the Republic of Uzbekistan is taxed at the rates established by item 3 of Article 353 of this Code;

12. fines, late-payment interest, and other payments for breach of contractual obligations;

13. property or services received without consideration. The value of property or services received without consideration is determined under the procedure provided by Article 299 of this Code;

14. income from assigning a debt claim to a tax resident of the Republic of Uzbekistan or to a nonresident legal entity conducting activities in the Republic of Uzbekistan through a permanent establishment.

Such income is the positive difference between the price at which the claim was assigned and the amount of the claim receivable from the debtor on the assignment date, according to the nonresident's primary documents;

15. income of a nonresident from assigning a claim acquired from a tax resident of the Republic of Uzbekistan or from a nonresident legal entity conducting activities in the Republic of Uzbekistan through a permanent establishment.

Such income is the positive difference between the amount receivable from the debtor under the principal claim, including any amount exceeding the principal debt on the assignment date, and the acquisition cost of the claim;

16. income from providing disk space and/or a communications channel in the Republic of Uzbekistan to host information on a server and from providing technical-maintenance services for that server;

17. income from technical services, defined as payment for services of a managerial, technical, or consulting nature;

18. other income received by a nonresident from providing services in the Republic of Uzbekistan.

The following is not income of a nonresident from sources in the Republic of Uzbekistan:

1. income from foreign-trade transactions conducted exclusively in the name and interests of the person conducting them and connected exclusively with purchasing goods in the Republic of Uzbekistan or importing goods into the Republic of Uzbekistan.

For transactions involving the importation of goods into the Republic of Uzbekistan, this provision applies when the goods are placed under the import customs procedure and both of the following conditions are met:

a) that person supplies the goods from a place other than a storage facility, including a customs warehouse, located in the Republic of Uzbekistan;

b) the goods are not sold through a permanent establishment of a foreign legal entity in the Republic of Uzbekistan.

If at least one of the conditions specified in the second textual paragraph of this item is not met, the portion of income attributable to that person's activity in the Republic of Uzbekistan is recognized as income from sources in the Republic of Uzbekistan when the goods are sold.

If a foreign-trade agreement for the purchase or sale of equipment, installations, machinery, components, or spare parts provides for the nonresident to perform installation and/or commissioning services, personnel-training services, or other similar services but does not separately state the value of those services, the nonresident's taxable income is determined on the basis of their market value. The same rules apply when representatives of the nonresident are physically present in the Republic of Uzbekistan while equipment is assembled, installed, or commissioned under a foreign-trade agreement, even if the agreement does not provide for the nonresident to perform installation and/or commissioning work, personnel-training services, or other similar services;

[The third textual paragraph of subparagraph (b) of item 1 of part three of Article 351 as revised by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

2. income from performing work or providing services outside the Republic of Uzbekistan, except income from work or services provided for by part two of this Article.

If a service contract provides for a nonresident to provide services both in and outside the Republic of Uzbekistan, the procedure for calculating and withholding tax established by this Article applies separately to each type of service. Each stage of services provided by a nonresident within a single production and technological cycle is treated as a separate type of service for withholding tax on the nonresident's income at source. The nonresident's total income under the contract must be allocated on a reasonable basis between income from services provided in and outside the Republic of Uzbekistan.

For purposes of part four of this Article, the nonresident must provide the service recipient with copies, certified by the nonresident, of accounting records prepared in accordance with the legislation of the Republic of Uzbekistan and/or a foreign state and confirming the allocation of the nonresident's total income between income from services provided in and outside the Republic of Uzbekistan. If no such allocation is provided, the entire amount of income paid to the nonresident for services provided both in and outside the Republic of Uzbekistan is taxable.

Article 352. Persons Recognized as Tax Agents

The following are recognized as tax agents:

1. legal entities, including participants in a consolidated group of taxpayers;

2. individual entrepreneurs;

3. non-residents operating through permanent establishments;

4. representative offices of non-resident legal entities in the Republic of Uzbekistan;

5. individuals and legal entities that are non-residents of the Republic of Uzbekistan, as well as foreign structures without legal personality, except for those specified in paragraph 3 of this part, where they acquire the property specified in paragraph 5 of part two of Article 351 of this Code.

Article 354. Procedure for the Calculation of Tax by Tax Agents

The tax base is determined by the tax agent separately for each payment of income to a taxpayer.

The amount of tax on income of a non-resident from sources in the Republic of Uzbekistan, taking into account the special considerations provided for by Article 356 of this Code, is calculated as the percentage of the tax base corresponding to the tax rate.

The amount of tax on income of a non-resident withheld upon payment of dividends to a non-resident by a legal entity of the Republic of Uzbekistan is reduced by the amount of tax previously paid on dividends received by that legal entity from other legal entities of the Republic of Uzbekistan, subject to the following conditions:

• the non-resident holds a participation interest of not less than twenty-five percent in the charter fund (charter capital) of the legal entity of the Republic of Uzbekistan paying the dividends;
• such holding was continuous for not less than 365 calendar days before the dividend payment date;
• the amount of tax paid on the dividends received was not previously taken into account in determining the tax on income of the non-resident in the form of dividends;
• the tax agent, a legal entity of the Republic of Uzbekistan, received documents confirming payment of tax on dividends received from other legal entities of the Republic of Uzbekistan.

The amount of tax is calculated and paid in the national currency at the rate established by the Central Bank of the Republic of Uzbekistan as of the date of payment of income to a non-resident of the Republic of Uzbekistan, taking into account the special considerations provided for by Article 356 of this Code.

Calculation and withholding of the amount of tax on income paid to non-residents is carried out by the tax agent for all types of income, except in cases where:

1. the tax agent has been notified by the non-resident that the income payable relates to the permanent establishment of the non-resident in the Republic of Uzbekistan, and the tax agent holds a certificate certified by the tax authority confirming that the non-resident is registered with the tax authority as a permanent establishment of the non-resident;
2. with respect to the income payable to the non-resident, Article 353 of this Code establishes a tax rate of 0 percent;
3. the income payable is received upon performance of a production-sharing agreement, where the legislation of the Republic of Uzbekistan provides for the exemption of such income from taxation;
4. the income payable is not subject to taxation in the Republic of Uzbekistan in accordance with an applicable international treaty of the Republic of Uzbekistan, provided that the nonresident having beneficial ownership of the relevant income presents to the tax agent the confirmation provided for by Article 358 of this Code.

Where income payable to a non-resident is taxable in the Republic of Uzbekistan at reduced tax rates in accordance with an applicable international treaty of the Republic of Uzbekistan, the calculation and withholding of the amount of tax on income is carried out at the relevant reduced tax rates, provided that the non-resident presents to the tax agent the confirmation provided for by Article 358 of this Code. The rules of this part apply taking into account the provisions of Article 6 of this Code.

Payment of income to a non-resident, regardless of the place of such payment, means, in particular:

1. transfer of funds in cash and/or non-cash form, securities, participation interests, goods, and property;
2. transactions (compensation, set-off of a homogeneous counter-claim, set-off upon assignment of a right of claim, novation, debt forgiveness) carried out in respect of income of a non-resident of the Republic of Uzbekistan;
3. termination of the obligation to pay income due to impossibility of performance or merger of the debtor and creditor in one person.

Where income is paid in non-monetary form or by way of mutual set-off, and also where the amount of tax subject to withholding exceeds the amount of the non-resident's income received in monetary form, the tax agent must pay the tax to the budget in the calculated amount, reducing accordingly the income of the non-resident received in non-monetary form, unless otherwise provided by part thirteen of this Article.

The income of a non-resident is subject to taxation regardless of whether that non-resident disposes of its income in favor of third parties, its subdivisions in other states, or for other purposes.

The amounts of taxes paid on income from insurance premiums may be revised upon the occurrence of insured events.

Upon the occurrence of an insured event, insurance payments are credited toward a reduction of the income of the non-resident insurer from which the tax was withheld and paid by the tax agent. Such recalculation may be carried out by the tax agent that paid income to the non-resident and withheld tax upon payment of income.

Where the amount of tax has not been withheld or the provisions of an international treaty of the Republic of Uzbekistan have been improperly applied, resulting in non-withholding or incomplete withholding of tax, the tax agent must pay to the budget the amount of the non-withheld tax and the corresponding amount of penalty interest.

Where a tax agent pays the amount of tax calculated on the income of a non-resident in accordance with the provisions of this Code from its own funds without withholding it, the tax agent's obligation to withhold and remit the tax is deemed fulfilled.

Article 359. Special Rules for Recording Taxable Income and Deductible Expenses

Individual entrepreneurs must keep records of taxable income and deductible expenses under the procedure prescribed for legal entities, unless otherwise provided by this Article and part eight of Article 360 of this Code.

Individual entrepreneurs engaged in trading activities must record taxable income and completed merchandise transactions in taxable-income and merchandise-transaction registers.

The following are taxable-income and merchandise-transaction registers:

1. the book of taxable income and merchandise transactions of an individual entrepreneur engaged in retail trade;

2. the sales-receipt book.

The forms of the taxable-income and merchandise-transaction registers are approved by the State Tax Committee of the Republic of Uzbekistan.

Upon application by an individual entrepreneur, the taxable-income and merchandise-transaction registers are registered by the tax authority at the entrepreneur's place of tax registration.

The taxable-income and merchandise-transaction registers must be kept by the individual entrepreneur for three years from the date of the last entry and must be numbered, bound, and sealed by the relevant tax authority.

[Part six of Article 359 as revised by Law of the Republic of Uzbekistan No. ZRU-891 of December 28, 2023; National Database of Legislation, December 29, 2023, No. 03/23/891/0989; effective January 1, 2024.]

Article 365. Object of Taxation

The object of taxation of personal income tax (hereinafter in this Section referred to as "tax") is the aggregate income of the taxpayer.

Income of individual entrepreneurs and self-employed persons from entrepreneurial activities that is subject to turnover tax in accordance with Section XX of this Code is not an object of taxation.

Article 369. Income Excluded from Total Income

The following is excluded from total income:

1. a one-time state cash award or the value of an equivalent commemorative gift received by a taxpayer awarded a state decoration or state prize of the Republic of Uzbekistan, and a one-time cash award, gift, or budget subsidy granted by decision of the President of the Republic of Uzbekistan or the Cabinet of Ministers of the Republic of Uzbekistan;

[Item 1 of part one of Article 369 as revised by Law of the Republic of Uzbekistan No. ZRU-1013 of December 24, 2024; National Database of Legislation, December 26, 2024, No. 03/24/1013/1066.]

2. remuneration for donating blood and amounts received by employees of medical institutions for collecting blood;

3. alimony received;

4. amounts received by individuals as insurance compensation;

5. scholarships paid in the amounts and under the procedure established by legislation;

6. monthly cash compensation payments for housing and utility services in accordance with legislation;

7. state pensions and benefits established by legislation, except temporary-disability benefits, including benefits for caring for a sick family member;

[Item 7 of part one of Article 369 as revised by Law of the Republic of Uzbekistan No. ZRU-646 of November 9, 2020; National Database of Legislation, November 9, 2020, No. 03/20/646/1488. This provision also applies to relations arising from April 1, 2020.]

8. mandatory funded pension contributions, interest income on those contributions, and funded pension payments;

9. income received by pupils and students from organizing fee-based courses and sports clubs and providing other educational services on the premises of vocational and higher education institutions of the Republic of Uzbekistan;

10. income from international bonds issued by the Republic of Uzbekistan and by legal entities resident in the Republic of Uzbekistan.

[Deletion date for part two of Article 369 under Law of the Republic of Uzbekistan No. ZRU-1108 of December 25, 2025: January 1, 2026.]

The following expenses incurred for the benefit of an individual by the tax agents specified in Article 386 of this Code are not treated as the taxpayer's income:

1. expenses for providing employees engaged in work under unfavorable working conditions with milk, therapeutic and preventive nutrition, carbonated salted water, personal protective equipment, and hygiene products under the procedure established by legislation;

2. payments, including financial assistance, made by a trade-union committee to union members from membership dues, except remuneration and other payments to employees of the trade-union committee for performing their employment duties;

3. financial assistance in connection with an emergency, within the amount of the damage caused;

4. expenses for transporting employees to and from work;

5. expenses for rites and ceremonies, holiday celebrations, hospitality, and the acquisition of travel cards used for employees' business travel on urban passenger transport, and other employer expenses connected with providing working and recreational conditions for employees that do not constitute the income of particular individuals;

6. expenses for issuing to an employee, or selling to an employee at a reduced price, protective clothing, protective footwear, and uniforms needed to perform official duties and, in cases provided by legislation, for providing meals to certain categories of employees while they perform official duties;

7. payment or reimbursement of expenses for travel, transportation of property, and rental of premises, including relocation allowances, when an employee is transferred or moves to work in another locality, including initial financial-assistance payments provided by legislation to employees who graduated from higher education institutions and, within three years after completing a bachelor's or master's degree, were hired by budget-funded organizations located in remote and hard-to-reach areas designated by the Cabinet of Ministers of the Republic of Uzbekistan, and to physicians and specialists with higher education residing in other regions who were hired by family medical centers, family polyclinics, and educational institutions located in those remote and hard-to-reach areas;

[Item 7 of part two of Article 369 as revised by Law of the Republic of Uzbekistan No. ZRU-714 of September 14, 2021; National Database of Legislation, September 15, 2021, No. 03/21/714/0874. This provision also applies to relations arising from June 1, 2021.]

8. compensation payments for business travel:

documented actual travel expenses to and from the business-trip destination, including reservation charges. If travel documents are unavailable, the amount is limited to the cost of rail travel, or intercity bus travel if there is no rail service, but may not exceed 30 percent of the airfare;

actual expenses for renting accommodation. If supporting accommodation documents are unavailable, the amount is limited to the rates established by legislation;

documented payments for reserving accommodation;

per diem payments for the period of the business trip, within the limits established by legislation;

other payments established by legislation and supported by documents;

9. compensation payments to an employee within the limits provided by legislation:

whose permanent work is performed in transit, is mobile and/or itinerant, or is performed on a rotational basis;

for using a personal automobile for business travel other than business trips;

field allowances;

monthly cash compensation for rental housing paid to employees who graduated from higher education institutions and, within three years after completing a bachelor's or master's degree, were hired by budget-funded organizations located in remote and hard-to-reach areas designated by the Cabinet of Ministers of the Republic of Uzbekistan, and to physicians and specialists with higher education residing in other regions who were hired by family medical centers, family polyclinics, and educational institutions located in those remote and hard-to-reach areas;

[Item 9 of part two of Article 369 supplemented by the fifth textual paragraph by Law of the Republic of Uzbekistan No. ZRU-714 of September 14, 2021; National Database of Legislation, September 15, 2021, No. 03/21/714/0874. This provision also applies to relations arising from June 1, 2021.]

other compensation payments under the procedure and within the limits provided by legislation, except those specified in Articles 373 and 377 of this Code;

10. payments compensating for harm connected with an occupational injury or other damage to health, in the amount of:

a monthly payment equal to the percentage of the victim's average monthly earnings before the occupational injury that corresponds to the degree of lost occupational capacity; where a minor suffers an occupational injury, compensation is based on the minor's earnings or income but may not be less than 1.76 times the minimum wage established by legislation;

70.3 percent of the minimum wage per month for additional expenses of victims requiring special medical care;

17.6 percent of the minimum wage per month as additional expenses for domestic care of the victim;

the victim's average annual earnings as a one-time benefit paid by the employer in connection with harm to the employee's health;

11. payments in connection with the death of a breadwinner in the amount of:

the share of the deceased's average monthly earnings attributable to disabled persons who were dependents of the deceased breadwinner and are entitled to compensation for harm resulting from the death;

six times the deceased's average annual earnings as a one-time benefit to persons entitled to compensation for harm resulting from the breadwinner's death;

12. funds transferred as payment for pupils' and students' education on a fee-for-service contractual basis under direct agreements with vocational and higher education organizations in the Republic of Uzbekistan;

[Item 12 of part two of Article 369 as revised by Law of the Republic of Uzbekistan No. ZRU-785 of July 26, 2022; National Database of Legislation, July 27, 2022, No. 03/22/785/0679.]

12¹) expenses connected with free education, within the limits established by legislation, of talented and gifted children from families in need of social support and a specified number of pupils from special contingents in nonstate preschool education organizations and schools, including nonstate preschool education organizations and schools established as public-private partnerships;

[Part two of Article 369 supplemented by item 12¹ by Law of the Republic of Uzbekistan No. ZRU-785 of July 26, 2022; National Database of Legislation, July 27, 2022, No. 03/22/785/0679.]

13. expenses for improving employees' qualifications and retraining employees;

14. income in cash or in kind received through a taxpayer's participation in programs designed to increase customers' activity in purchasing goods and services and providing for the accrual or receipt of bonuses, points, or other units measuring customer activity in purchasing goods or services on grounds established by the relevant program. Such income is included in the taxpayer's total income in the following cases:

where the taxpayer participates in a program specified in the first textual paragraph of this item and participation is not offered under a public offer;

where the taxpayer joins a program specified in the first textual paragraph of this item whose public-offer terms provide an acceptance period shorter than thirty days and/or permit early withdrawal of the offer;

where income specified in the first textual paragraph of this item is paid as remuneration to persons employed by the program organizer for performing their official duties, or as payment or remuneration for goods supplied, work performed, or services provided by the taxpayer, or as financial assistance;

15. assistance provided by citizens' self-government bodies, trade unions, charitable or environmental funds, and other funds established by decisions of the President of the Republic of Uzbekistan, in the form of:

work performed and services provided as part of activities specified in the charter;

the cost of treatment and medical services and the acquisition of technical equipment for the prevention and rehabilitation of persons with disabilities;

[The third textual paragraph of item 15 of part two of Article 369 as revised by Law of the Republic of Uzbekistan No. ZRU-770 of May 17, 2022; National Database of Legislation, May 18, 2022, No. 03/22/770/0424.]

the acquisition of goods and services from a supplier for the benefit of an individual;

other forms of charitable support, except support in cash.

[Part two of Article 369 supplemented by item 15 by Law of the Republic of Uzbekistan No. ZRU-646 of November 9, 2020; National Database of Legislation, November 9, 2020, No. 03/20/646/1488. This provision also applies to relations arising from April 1, 2020.]

16. a taxpayer's income in the form of cash bonuses and remuneration received through participation in programs designated by decisions of the President of the Republic of Uzbekistan or the Cabinet of Ministers of the Republic of Uzbekistan.

[Part two of Article 369 supplemented by item 16 by Law of the Republic of Uzbekistan No. ZRU-714 of September 14, 2021; National Database of Legislation, September 15, 2021, No. 03/21/714/0874. This provision also applies to relations arising from June 1, 2021.]

Article 373. Compensation Payments (Compensation)

Compensation payments (compensation) included in income in the form of labor remuneration include:

1. additional payments connected with work in areas with unfavorable natural and climatic conditions (increments for length of service, payments at established coefficients for work in highland, desert, and waterless areas); the maximum amount for the accrual of coefficients to the wages of employees of legal entities for work in desert and waterless areas, highlands, and areas with unfavorable natural and climatic conditions is determined at 1.41 times the minimum wage established as of the date of accrual;

2. increments for work in difficult, harmful, or especially harmful working conditions, including increments to wages for continuous length of service in such conditions, according to the list of occupations and the list of works approved by the Cabinet of Ministers of the Republic of Uzbekistan;

3. increments and additional payments to tariff rates and official salaries for work during night hours, overtime work, work on weekends and public (non-working) holidays, as provided for in the technological process schedule;

4. increments for work in multi-shift mode, as well as for combining occupations, positions, expanding service areas, increasing the volume of work performed, and performing the duties of temporarily absent employees alongside one's main work;

5. increments paid in excess of the norms established by legislation to the wages of employees whose permanent work takes place in transit, has a mobile and/or traveling nature, or provides for the performance of work on a rotational basis;

6. amounts payable for performance of work on a rotational basis in the amount of the tariff rate or official salary for calendar days spent in travel from the location of the employer (assembly point) to the place of work and back as provided for in the rotation work schedule, as well as for days during which employees' travel is delayed due to meteorological conditions or the fault of transport organizations;

7. additional payments to employees permanently engaged in underground work for the standard time of their movement in a mine or pit from the dump to the place of work and back;

8. field allowance in excess of the norms established by legislation;

9. per diem during business trips in excess of the norms established by legislation;

10. payments for days of rest (time off) provided to employees in connection with excess working hours under the rotational method of organizing work, summarized recording of working hours, and in other cases established by legislation;

11. payments for the use of an employee's personal vehicle for official travel or other personal property of an employee for official purposes, in excess of the norms established by legislation;

12. amounts received in compensation for harm connected with a work injury or other damage to health, in excess of the amounts specified in paragraph 10 of part two of Article 369 of this Code;

13. the cost of meals and travel tickets, or reimbursement of the cost of meals and travel tickets.

Article 374. Payment for Time Not Worked

Payment for time not worked includes:

1. payment in accordance with legislation for:

a) annual basic leave, including extended basic leave, and cash compensation when such leave is unused, including upon termination of an employee's employment contract;

b) additional leave for employees in certain industries for work under unfavorable and special working conditions and for work under difficult and unfavorable natural and climatic conditions;

c) educational leave and creative leave;

d) additional leave for women who have two or more children under twelve years of age or a child with a disability under sixteen years of age;

2. payments to employees on involuntary leave with partial continuation of their basic salary;

3. payment to employee blood donors for days of examination and blood donation and for the rest day provided after each day of blood donation;

4. remuneration for performing state or public duties in accordance with the Labor Code of the Republic of Uzbekistan;

5. salary retained at the principal place of employment for employees assigned to agricultural or other work;

6. payment of a salary differential to employees hired from other legal entities whose previous official salary is maintained for a specified period, and in cases of temporary substitution;

7. salary at the principal place of employment paid to employees while they undergo off-the-job training in the personnel retraining and professional-development system;

8. payment for downtime not attributable to the employee;

9. supplementary payments to employees in the event of temporary incapacity for work;

10. payment for a period of involuntary absence from work or performance of lower-paid work in accordance with legislation or by decision of the employer;

11. payment for reduced working hours of persons under eighteen years of age, breaks for mothers to feed a child, and time connected with undergoing a medical examination;

12. remuneration of skilled workers, whether or not released from their principal work, who are engaged to train, retrain, and improve the qualifications of employees or to supervise the practical training of pupils and students;

13. pension and benefit supplements and scholarships paid from the employer's funds;

14. benefits paid by an employer to young specialists for a period of leave following graduation from a higher education institution.

[Item 14 of Article 374 as revised by Law of the Republic of Uzbekistan No. ZRU-957 of September 7, 2024; National Database of Legislation, September 9, 2024, No. 03/24/957/0689.]

Article 375. Property Income

Property income includes:

1. interest;

2. dividends;

3. income from leasing property;

4. income from the disposal of property owned by the taxpayer. Income from the disposal of property is the excess of the amount realized from the property over its documented acquisition cost. If that cost is not documented, the value of the property disposed of is recognized as income; for immovable property, income is the positive difference between the disposal price and cadastral value;

5. income received by a taxpayer holding a patent or license for an industrial-property object or plant variety when assigning the patent or entering into a license agreement;

6. royalties;

7. income received from a trustee in respect of property transferred into trust management;

[Item 8 of Article 375 repealed by Law of the Republic of Uzbekistan No. ZRU-1057 of April 17, 2025.]

9. income from transactions in securities and/or derivative financial instruments under forward transactions, determined under the procedure provided by Articles 327 through 329 of this Code;

10. income in the form of profit of a controlled foreign company in the cases and under the procedure established by Section VII of this Code;

11. income from participation in joint activity under a simple partnership agreement or joint-activity agreement, determined in accordance with Article 319 of this Code;

12. other income of a property nature not specified in items 1 through 11 of this Article.

Article 378. Income Not Subject to Taxation

The following types of income are not subject to taxation:

1. amounts of financial assistance:

to family members of a deceased employee, or to an employee in connection with the death of a family member, up to 4.22 times the minimum wage;

in the other cases specified in Article 377 of this Code, up to 4.22 times the minimum wage for the tax period;

2. amounts of full or partial reimbursement by legal entities of the cost of vouchers, other than tourist vouchers:

for persons with disabilities, including those not employed by the employer, to sanatorium-resort and health-improvement institutions located in the Republic of Uzbekistan;

for their employees' children under sixteen years of age, or pupils under eighteen years of age, to children's and other health camps and to sanatorium-resort and health-improvement institutions located in the Republic of Uzbekistan;

3. amounts paid by an employer for outpatient and/or inpatient medical services for its employees and their children, and employer expenses for treatment and medical services and for acquiring technical means for preventing disability and rehabilitating persons with disabilities. This income is exempt from taxation if the employer makes a noncash payment to a healthcare organization for treatment or medical services for employees, issues funds for those purposes directly to the employee or, in the employee's absence, to the employee's family members or parents on the basis of documents issued by a healthcare organization, or credits the funds to the employee's bank account;

4. salary and other amounts in foreign currency received by citizens of the Republic of Uzbekistan from budget-funded organizations in connection with an assignment to work outside the Republic of Uzbekistan, within the amounts established by legislation;

5. income from temporary one-time work where persons are hired for that work with the assistance of centers providing temporary one-time employment;

6. a one-time cash award received by athletes for prize-winning places in international sports competitions;

7. income from the sale of property privately owned by the taxpayer, except income from the sale of:

securities, other than issue-grade securities sold on a stock exchange, and interests or participatory shares in the charter fund or authorized capital of legal entities;

nonresidential premises;

residential premises owned by the taxpayer for fewer than thirty-six calendar months;

8. income from the sale of live animals raised in a household, including a dehkan farm, such as livestock, poultry, fur-bearing and other animals, and fish; products of their slaughter in raw or processed form, other than industrial processing; and livestock, beekeeping, and crop products in natural or processed form, except ornamental-horticulture and floriculture products;

9. the value of noncash prizes received at international and national contests and competitions;

10. the following received from an employer during a tax period, with a value of up to 2.11 times the minimum wage:

gifts in kind to employees;

gifts and other assistance to pensioners who do not work and persons who have lost capacity for work and who were previously employed by that employer, and to family members of a deceased employee;

11. income in cash or in kind received from individuals by inheritance, gift, or without consideration, except:

remuneration paid to the heirs or successors of authors of works of science, literature, and art; performers of works of literature and art; and authors of discoveries, inventions, and industrial designs;

immovable property, motor vehicles, securities, and interests in the charter funds or authorized capital of legal entities transferred between persons who are not close relatives;

12. winnings on government-loan bonds and interest on government securities of the Republic of Uzbekistan;

13. income from savings certificates and government securities, and interest and winnings on bank deposits;

14. a grant received directly by the taxpayer from the grantor, subject to an opinion from the authorized body, where the grant is provided by a nonstate nonprofit organization, international or foreign organization or fund, or under an international treaty of the Republic of Uzbekistan on scientific and technical cooperation;

[Item 15 of Article 378 repealed from April 1, 2023, by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145.]

16. salary and other taxable income of the taxpayer directed toward:

payment for education of the taxpayer, the taxpayer's children, or the taxpayer's spouse under twenty-six years of age at vocational and higher education organizations in the Republic of Uzbekistan. This relief also applies to a taxpayer's income directed toward repayment of educational credits, including interest, granted by commercial banks for study at vocational and higher education organizations;

[The second textual paragraph of item 16 of Article 378 as revised by Law of the Republic of Uzbekistan No. ZRU-891 of December 28, 2023; National Database of Legislation, December 29, 2023, No. 03/23/891/0989. This provision also applies to relations arising from August 1, 2023.]

payment by parents or adoptive parents for their children's educational services at nonstate preschool education organizations and/or schools, and payment by parents or persons acting in their place for daytime-care services for children with disabilities between three and eighteen years of age, up to three million soums per month for each child;

provision of patronage support, but not exceeding 50 percent of the tax base;

repayment of mortgage credits and accrued interest on them, in an aggregate amount of up to eighty times the minimum wage during the tax period, provided that the acquisition, construction, or reconstruction of residential immovable property is carried out with a budget subsidy compensating for part of the down payment and/or interest on the mortgage credit. This tax relief applies to the borrower and/or coborrowers provided that the aggregate amount of their income not subject to taxation does not exceed the established amount. For salary and other income directed toward repaying mortgage credits received by spouses who are a young family and interest accrued on those credits, the relief applies until the spouses, or either spouse, reaches the prescribed age, without regard to the condition concerning budget subsidies established by this textual paragraph. If residential immovable property acquired, constructed, or reconstructed after January 1, 2023, using a mortgage credit is disposed of within thirty-six months after state registration of the rights to the property, the tax relief is canceled and the tax-payment obligations are reinstated for the entire period in which the relief applied;

[The fifth textual paragraph of item 16 of Article 378 as revised by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

citizens' individual funded pension accounts at the People's Bank of the Republic of Uzbekistan on a voluntary basis;

17. income in the form of interests, participatory shares, and shares of stock received from individuals without consideration, including under gift agreements, if transferred between close relatives.

The acquisition of control rights in respect of a foreign structure without legal personality, or a foreign legal entity for which the legislation of its country of registration does not provide for participation in capital, is not recognized as receipt of income or acquisition of a right to dispose of income if those rights are acquired through a transfer between members of the same family and/or close relatives;

18. income received for harvesting raw cotton by taxpayers engaged in seasonal agricultural work;

19. income received by taxpayer prospectors from the sale of precious metals extracted through artisanal prospecting under the procedure established by legislation;

19¹) income received by a taxpayer from leasing residential premises to students;

[Article 378 supplemented by item 19¹ by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021; National Database of Legislation, December 30, 2021, No. 03/21/741/1219. This provision also applies to relations arising from October 1, 2021.]

20. benefits and other assistance in cash provided to taxpayers by citizens' self-government bodies, trade unions, and charitable and environmental funds, not exceeding fifteen million soums during the tax period.

[Article 378 supplemented by item 20 by Law of the Republic of Uzbekistan No. ZRU-646 of November 9, 2020; National Database of Legislation, November 9, 2020, No. 03/20/646/1488. This provision also applies to relations arising from April 1, 2020.]

20¹) charitable donations in cash provided directly by charitable organizations registered under the procedure established by legislation to members of families included in the Unified Register of Social Protection or the Register of Poor Families, in an amount of up to one hundred times the base calculation amount during the tax period;

21. a taxpayer's salary and other income, in an amount of up to eight times the base calculation amount, directed during the tax period toward payment of:

membership dues to international organizations, where a document confirms payment of those dues as a member of the relevant international organization;

payments to nonstate educational organizations for retraining and professional development, where a document issued by the organization confirms completion of the course.

[Article 378 supplemented by item 21 by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021; National Database of Legislation, December 30, 2021, No. 03/21/741/1219. This provision also applies to relations arising from October 1, 2021.]

22. upon a public offering of shares, funds of enterprise employees not exceeding their monthly salary and equivalent payments that are directed toward acquiring shares under an employee share-ownership plan of those enterprises;

23. a portion of taxpayers' salary and other income directed during the tax period to an individual investment account to acquire securities issued on the domestic securities market, provided all of the following conditions are met:

the aggregate amount directed to the account does not exceed one hundred times the minimum wage;

funds credited to the individual investment account are not withdrawn for twelve months from the date of the first credit. The amount directed to an individual investment account during a month may not exceed twenty times the minimum wage;

funds in the individual investment account are used to acquire securities.

If the conditions of this item are violated, the funds in the individual investment account are subject to taxation at source;

24. income of individuals who participated, including by temporary assignment or business trip, in remedying the consequences of the Chernobyl Nuclear Power Plant disaster, and income of their spouses. This tax relief is granted on the basis of a certificate from a medical and social expert commission, a disability certificate, a certificate of participation in remedying the consequences of the Chernobyl Nuclear Power Plant accident, and other documents issued by authorized bodies that provide grounds for the relief;

25. taxable salary income of employees of Mahalla Service companies received as a result of their employment.

Article 380. Reduction in the Aggregate Income of Certain Categories of Taxpayers

The following taxpayers are partially exempt from taxation, with respect to income in the amount of 1.41 times the minimum wage (and, for persons referred to in paragraph 3 of this part, with respect to income in the amount of 3 times the minimum wage) for each month in which that income is received (first paragraph of part one of Article 380 as amended by Law of the Republic of Uzbekistan of May 5, 2022, No. ZRU-767, National Legislation Database, May 6, 2022, No. 03/22/767/0386; also applies to relations arising from March 1, 2022):

1. persons awarded the title "Hero of Uzbekistan", Hero of the Soviet Union, or Hero of Labor, or awarded the Order of Glory of three degrees. This tax relief is granted on the basis of a certificate of conferment of the title "Hero of Uzbekistan," a booklet of a Hero of the Soviet Union or Hero of Labor, an order booklet, or a certificate from the defense department;

2. persons with disabilities and war veterans, as well as persons equated to them, whose circle is determined by legislation. This tax relief is granted on the basis of the corresponding certificate of a person with a disability (participant) of the war or a certificate from the defense department or other authorized body, and to other persons with disabilities (participants) on the basis of a certificate of a person with a disability (participant) for the entitlement to tax relief; (paragraph 2 of part one of Article 380 as amended by Law of the Republic of Uzbekistan of May 17, 2022, No. ZRU-770, National Legislation Database, May 18, 2022, No. 03/22/770/0424)

3. persons with disabilities from childhood, as well as persons with disabilities of Groups I and II, with the exception of persons with disabilities of Groups I and II due to the Chernobyl nuclear power plant disaster. This tax relief is granted on the basis of a pension certificate or a certificate of the medical and social expert commission;

4. parents and widows (widowers) of military personnel and employees of the internal affairs bodies and the National Guard of the Republic of Uzbekistan who were killed as a result of wounds, concussion, or injury received while defending the former USSR, the constitutional order of the Republic of Uzbekistan, or while performing other duties of military service or service in the internal affairs bodies and the National Guard of the Republic of Uzbekistan, or due to illness connected with being at the front. The tax relief is granted on the basis of a pension certificate bearing the stamp "Widow (widower, mother, father) of a deceased serviceman," "Widow (widower, mother, father) of a deceased employee of the internal affairs bodies," or "Widow (widower, mother, father) of a deceased employee of the National Guard of the Republic of Uzbekistan," or bearing a corresponding entry certified by the signature of the head and the seal of the institution that issued the pension certificate. Where such persons are not retired, the tax relief is granted to them on the basis of a certificate of the death of a serviceman or an employee of the internal affairs bodies and the National Guard of the Republic of Uzbekistan, issued by the relevant bodies of the Ministry of Defense, the State Security Committee, or the Ministry of Internal Affairs of the former USSR, as well as the Ministry of Defense, the State Security Service, the Ministry of Internal Affairs, the Ministry of Emergency Situations, the National Guard of the Republic of Uzbekistan, the State Security Service of the President of the Republic of Uzbekistan, the State Customs Committee of the Republic of Uzbekistan, and other agencies providing for military service. Widows (widowers) of military personnel or employees of the internal affairs bodies and the National Guard of the Republic of Uzbekistan who were killed while defending the former USSR, the constitutional order of the Republic of Uzbekistan, or while performing other duties of military service or service in the internal affairs bodies and the National Guard of the Republic of Uzbekistan, or due to illness connected with being at the front, are eligible for this tax relief only if they have not entered into a new marriage; (paragraph 4 of part one of Article 380 as amended by Law of the Republic of Uzbekistan of October 29, 2021, No. ZRU-726, National Legislation Database, October 30, 2021, No. 03/21/726/1001)

5. single mothers with two or more children under sixteen years of age. The tax relief is granted on the basis of a certificate issued by the civil registration authorities for each child separately;

6. widows and widowers who have two or more children under sixteen years of age and do not receive a survivor's pension (pension on loss of a breadwinner). The tax relief is granted upon presentation of the death certificate of the husband (wife), birth certificates of the children, a certificate confirming the absence of a new marriage, and a certificate from the district (city) department of the Off-budget Pension Fund under the Ministry of Finance of the Republic of Uzbekistan confirming the absence of a survivor's pension;

7. one of the parents raising a person with a disability from childhood residing with them, due to requirements for constant care. The tax relief is granted on the basis of a pension certificate or a medical certificate from a healthcare institution confirming the need for constant care.

The tax reliefs provided for by this Article are applied upon submission of the corresponding documents.

Where the right to a tax relief arises during a calendar year, the tax reliefs are applied from the moment the right to the tax relief arises.

Where a taxpayer is entitled to a tax relief on several grounds provided for by this Article, only one tax relief is granted, at the choice of that person.

The tax relief is applied at the place of the main employment (service, study) of the taxpayer, and in the absence of a main place of employment, by the tax authorities at the place of residence upon calculation of tax on the basis of the declaration of aggregate annual income. Where a taxpayer loses the right to a tax relief, the taxpayer must notify the legal entity withholding tax from them within fifteen days of the date of loss.

The tax reliefs listed in part one of this Article also apply to the taxpayer's income received in the form of interest and dividends, as well as to income received from the lease of property. Where interest and dividends are accrued at the place of main employment, the tax relief is applied at the place of main employment. Where interest and dividends are not accrued at the place of main employment, the tax relief is applied upon calculation of tax on the basis of the declaration of aggregate annual income by the tax authorities at the place of residence of the taxpayer. An analogous procedure applies to income received from the lease of property.

Article 382. Tax Rates for Individuals Who Are Nonresidents of the Republic of Uzbekistan

Income received by an individual who is a nonresident of the Republic of Uzbekistan from sources in the Republic of Uzbekistan is taxed at the following rates:

[Article 382 as revised by Law of the Republic of Uzbekistan No. ZRU-785 of July 26, 2022; National Database of Legislation, July 27, 2022, No. 03/22/785/0679. The provisions of item 3 of this Article also apply to relations arising from May 1, 2022.]

[Date on which Article 383 ceased to have effect under Law of the Republic of Uzbekistan No. ZRU-1108 of December 25, 2025: January 1, 2026.]

Article 385. General Provisions

Tax is calculated and paid by:

1. tax agents paying income to a taxpayer;

2. the taxpayer independently.

Certain categories of taxpayers may elect to pay tax on the basis of a return of total annual income under the procedure established by Article 397 of this Code.

Part two of this Article applies to the following categories of taxpayers:

[Deletion date for item 1 of part three of Article 385 under Law of the Republic of Uzbekistan No. ZRU-1108 of December 25, 2025: January 1, 2026.]

[Item 2 of part three of Article 385 repealed from January 1, 2021, by Law of the Republic of Uzbekistan No. ZRU-659 of December 30, 2020; National Database of Legislation, December 31, 2020, No. 03/20/659/1681.]

3. family members conducting activities as a family business without forming a legal entity;

4. artisan-business entities that are members of the Hunarmand Association.

The taxpayers specified in part three of this Article may elect the procedure for paying tax by:

1. specifying the selected tax-payment procedure upon state registration of the business entity;

2. submitting notice of the selected tax-payment procedure to the tax authority at their permanent place of residence no later than January 25 of the current year.

Failure by a taxpayer specified in part three of this Article to submit notice within the period specified in part four of this Article is deemed consent to pay turnover tax.

In the cases provided by this Code, tax may be calculated by the tax authority.

The calculated tax is reduced by mandatory monthly contributions to individuals' funded pension accounts accrued under the procedure established by legislation.

Tax on individuals in an employment relationship with an individual entrepreneur is calculated and withheld at source by the tax agent in accordance with item 1 of part one of this Article.

Article 389. Procedure for Filing Tax Returns

Tax agents must submit the following to the tax authority at their place of tax registration:

1. within thirty days after the end of the tax period, a statement, in a form approved by the State Tax Committee of the Republic of Uzbekistan in coordination with the Ministry of Finance of the Republic of Uzbekistan, concerning individuals who received income in the form of a material benefit that was not taxed at source;

2. monthly, no later than the fifteenth day of the month following the reporting period and, for the year, no later than February 15 of the following year.

[Item 2 of part one of Article 389 as revised by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

Tax agents that are legal entities of the Republic of Uzbekistan, including those having branches and/or separate subdivisions with more than twenty-five employees, submit the tax returns specified in part one of this Article for the employees of those branches and/or separate subdivisions to the tax authority at the place where the branch or separate subdivision is registered.

[Part two of Article 389 as revised by Law of the Republic of Uzbekistan No. ZRU-785 of July 26, 2022; National Database of Legislation, July 27, 2022, No. 03/22/785/0679.]

Tax agents that are individual entrepreneurs submit the tax returns specified in part one of this Article for their hired employees to the tax authority at their place of tax registration, unless otherwise provided by Chapter 57 of this Code.

Article 391. Procedure for Refunding an Excess Amount of Tax Withheld

An amount of tax excessively withheld by a tax agent from a taxpayer's income must be refunded by the tax agent on the basis of the taxpayer's written application, unless otherwise provided by this Chapter.

An amount of tax excessively withheld by a tax agent is refundable within one tax period.

The tax agent refunds an excessive amount of tax withheld to the taxpayer, within three months after receiving the taxpayer's application, from amounts of that tax otherwise payable to the budget system as future payments for that taxpayer or for other taxpayers from whose income the tax agent withholds the tax.

The tax agent refunds excessive amounts of tax withheld in noncash form by transferring funds to the taxpayer's bank account specified in the application.

If there is no tax agent, or after the end of the tax period established by part two of this Article, the taxpayer may apply to the tax authority for a refund of an amount of tax previously excessively withheld and remitted to the budget system by the tax agent, concurrently with filing the return of total annual income at the end of the tax period.

A taxpayer that acquires the status of a resident of the Republic of Uzbekistan during a tax period is entitled to a recalculation and refund of tax paid during that period while having nonresident status. The tax is refunded by the tax authority with which the taxpayer was registered at the place of residence or temporary stay when the taxpayer files a return of total annual income under the procedure established by Article 397 of this Code. Documents confirming the taxpayer's status as a resident of the Republic of Uzbekistan during that tax period must be attached to the return.

[Date on which Article 392 ceased to have effect under Law of the Republic of Uzbekistan No. ZRU-1108 of December 25, 2025: January 1, 2026.]

[OKOZ classification: 1.07.00.00.00 Legislation on Finance and Credit; Banking Activity / 07.10.02.00 (no longer in force) Personal Income Tax / 07.10.02.08 (no longer in force) Declaration of Individual Income / 07.90.00.00 (no longer in force) National Taxes.]

Chapter 57. Taxation of Income on the Basis of a Return of Total Annual Income

Article 393. Income Taxable on the Basis of a Declaration of Aggregate Annual Income

The following incomes of individuals who are residents of the Republic of Uzbekistan must be deemed income taxable on the basis of the declaration: income from assets, which are not taxable by a tax agent in accordance with this Section; income which is received in the form of royalties for the creation and use of works of science, literature and art; income in the form of material gains, which have not been taxed by a tax agent; income received from sources outside the Republic of Uzbekistan; income which is received from sources other than tax agents; income which is received by individuals specified in part three of Article 385 of this Code, where they choose the procedure for the payment of tax on the basis of a declaration of aggregate annual income; other taxable income from which the tax agent did not withhold the tax. A declaration of aggregate annual income must not be submitted where the tax was withheld from income received by the taxpayer outside the place of his main job on the basis of his application, with the exception of income specified in paragraph five of part one of his Article. A foreign individual, who is a resident of the Republic of Uzbekistan or who became one before April 1 of the current year, must submit a declaration of aggregate annual income in the manner and time limits provided for in Article 397 of this Code, irrespective of the provisions of parts one and two of this Article.

Article 397. Procedure for Filing a Declaration of Aggregate Annual Income

Taxpayers with income specified in Article 393 of this Code file a declaration of aggregate annual income with the tax authority at the place of permanent residence no later than April 1 of the year following the reporting year, unless otherwise provided by this Article.

Taxpayers who received income not subject to declaration may file a declaration of aggregate annual income with the tax authority at the place of permanent residence on a voluntary basis.

Citizens of the Republic of Uzbekistan who were outside the Republic of Uzbekistan for a total of one hundred and eighty-three or more days during any consecutive twelve-month period may file a declaration of aggregate annual income in respect of income received from sources in the Republic of Uzbekistan and outside it with the tax authority at the place of permanent residence no later than one month from the date of return to the Republic of Uzbekistan, on a voluntary basis. In this case, no tax is payable in respect of income received outside the Republic of Uzbekistan during the period when the individual did not meet the criteria for recognition as a tax resident of the Republic of Uzbekistan.

A taxpayer who has received a grant, upon filing a declaration of aggregate annual income, must indicate the amount of income received under the grant, the amount of tax, and must also attach the corresponding conclusion of the authorized body.

Taxpayers who receive income from leasing property that is not subject to withholding tax at the source of payment, as well as individuals specified in part three of Article 385 of this Code who pay tax on the basis of a declaration of aggregate annual income, in addition to filing a declaration of aggregate annual income within the established time limits, must also file a preliminary declaration within the following time limits:

1. taxpayers who receive income from leasing property – within five days after the first month has elapsed from the date on which rental income arises;

2. individuals specified in part three of Article 385 of this Code who pay tax on the basis of a declaration of aggregate annual income – no later than February 1 of the current year. Newly registered business entities must file a preliminary declaration by the end of the month in which the state registration of the business entity is carried out.

Upon registration of a lease agreement in respect of immovable property with the tax authorities, a preliminary declaration is not filed.

Upon termination of receiving income from leasing property, the taxpayer must notify the tax authority at the place of permanent residence in writing.

A foreign individual who has become a resident of the Republic of Uzbekistan before April 1 of the current year must file a declaration of aggregate annual income for the previous tax period.

Where a foreign individual who is a resident of the Republic of Uzbekistan ceases, during a calendar year, activities the income from which is taxable in accordance with the procedure established by this Chapter, and departs from the territory of the Republic of Uzbekistan, a declaration of income actually received during the period of stay in the current tax period on the territory of the Republic of Uzbekistan must be filed one month before departure. Where a foreign individual who is a resident of the Republic of Uzbekistan departs abroad for permanent residence before February 1 of the current year, no declaration of income for the current year is filed.

The tax calculated on the basis of the declaration of aggregate annual income, the procedure for filing of which is determined by part nine of this Article, is payable within fifteen days from the date of filing the declaration.

Where the taxpayer has not filed a declaration of aggregate annual income, as well as in the event that inaccurate information in a previously filed declaration is identified and/or the taxpayer has not filed an application for amendment of the declaration of aggregate annual income within the time limits established in part six of Article 396 of this Code, the tax authority is entitled to calculate the amount of tax on the basis of information available to it and to deliver to the taxpayer, within ten days, a payment notice of the amount of tax calculated and payable. Where the taxpayer files a declaration or an amended declaration of aggregate annual income, the final tax amount is determined taking that declaration into account.

Article 400. Special Features of Taxation of Income of Non-Residents of the Republic of Uzbekistan

Taxation of income of individuals who are non-residents of the Republic of Uzbekistan at the source of payment is carried out regardless of whether the payment was made inside or outside the Republic of Uzbekistan.

Income of individuals who are non-residents of the Republic of Uzbekistan is taxed taking into account the international treaties of the Republic of Uzbekistan, except in cases where the collection of tax may be terminated or limited on the basis of reciprocity.

Payment of income to an individual who is a non-resident of the Republic of Uzbekistan is made without withholding tax at the source of payment or with the application of a reduced tax rate in accordance with the provisions of an international treaty of the Republic of Uzbekistan and the special provisions on international treaties governing the avoidance of double taxation and prevention of tax evasion, in accordance with Article 6 of this Code.

In the event of non-withholding of the tax amount or the wrongful application of provisions of an international treaty of the Republic of Uzbekistan resulting in non-withholding or incomplete withholding of such tax, persons recognized as tax agents in accordance with this Section of the Code must remit to the budget the amount of tax not withheld and the associated amount of late-payment interest in accordance with legislation.

Where a tax agent pays the amount of tax calculated on the income of a non-resident of the Republic of Uzbekistan in accordance with the provisions of this Code at the tax agent's own expense without withholding it, the tax agent's obligation to withhold and transfer the tax at the source of payment is considered fulfilled.

Article 403. Object of Taxation

The object of taxation of social tax (hereinafter in this Section referred to as "tax") is the employer's expenses for labor remuneration of employees.

The object of taxation also includes the income of foreign personnel payable to a legal entity that is a non-resident of the Republic of Uzbekistan under contracts for the rendering of services for the provision of foreign personnel to work in the territory of the Republic of Uzbekistan.

The object of taxation for certain categories of individuals is the conduct by them of entrepreneurial and/or individual labor activity.

The following are not objects of taxation:

• the employer's expenses in the form of compensation to the employee for harm connected with a work injury or other damage to health, to the extent they exceed the amounts specified in paragraph 10 of part two of Article 369 of this Code;
• expenses for labor remuneration of individuals engaged in seasonal agricultural work for cotton picking, for the performance of such work;
• expenses of "Mahalla Servis" companies for labor remuneration of employees performing work connected with the improvement of mahallas and rendering to residents of mahallas certain types of socially significant paid services established by legislation.

Article 407. Procedure for Calculating Tax, Filing Tax Returns, and Paying Tax

Tax is calculated monthly on the basis of the tax base and the prescribed tax rates.

Tax is paid from the funds of the employer and certain categories of individuals.

The Ministry of Foreign Affairs of the Republic of Uzbekistan is responsible for paying tax in respect of employees of diplomatic missions and consular institutions of the Republic of Uzbekistan and persons seconded by the Ministry to quota positions in international intergovernmental organizations.

The taxpayer files tax returns with the tax authority at its place of tax registration monthly, no later than the fifteenth day of the month following the reporting period and, for the year, no later than February 15 of the following year.

[Part four of Article 407 as revised by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

Tax is paid monthly no later than the deadline for filing the tax return.

Article 408. Special Rules for the Calculation and Payment of Tax by Certain Categories of Individuals

Unless otherwise provided by parts two and three of this Article, tax must be paid regardless of the number of days worked by the taxpayer during a calendar month:

[The first textual paragraph of part one of Article 408 as revised by Law of the Republic of Uzbekistan No. ZRU-847 of June 16, 2023; National Database of Legislation, June 17, 2023, No. 03/23/847/0384. This provision also applies to relations arising from January 1, 2023.]

1. by individual entrepreneurs, in an amount of not less than one base calculation amount per month;

[Deletion date for item 2 of part one of Article 408 under Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024: January 1, 2025; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067.]

3. by family members conducting activities as a family business without forming a legal entity:

by the family member registered as an individual entrepreneur, in an amount of not less than one base calculation amount per month;

by other family members, except those under eighteen years of age, in an amount equal to 50 percent of the base calculation amount per month;

[Item 4 of part one of Article 408 repealed by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021; National Database of Legislation, December 30, 2021, No. 03/21/741/1219.]

For purposes of calculating length of service, tax in an amount of not less than one base calculation amount per year is paid voluntarily by:

self-employed persons;

individuals who own household plots, or members of their families, who work on those household plots or engage there in animal husbandry, including cattle, sheep, goats, horses, and other animals; greenhouse farming; poultry farming, including chickens, quail, turkeys, geese, and ducks; rabbit farming; beekeeping; fish farming; horticulture; lemon growing; or floriculture, irrespective of the area of the household plot they own or the number of domestic animals and poultry they raise;

members of a dehkan farm, other than the head of the dehkan farm, and individuals employed in a dehkan farm;

citizens of the Republic of Uzbekistan employed abroad under an employment agreement;

citizens of the Republic of Uzbekistan working in trading houses, representative offices, including those without legal personality, and organizations established or opened in foreign states by state bodies and other organizations of the Republic of Uzbekistan;

employed individuals who pay tax for a nonworking spouse.

For purposes of calculating length of service, tax in an amount of not less than one base calculation amount per year is paid on a mandatory basis by:

artisan-business entities that are members of the Hunarmand Association;

students of Usta-Shogird schools during their work before reaching twenty-five years of age;

the head of a dehkan farm;

individuals in an employment relationship with an individual entrepreneur.

[The fifth textual paragraph of part three of Article 408 as revised by Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067; effective January 1, 2025.]

Artisan-business entities that are members of the Hunarmand Association and receive old-age pensions or benefits are exempt from tax. For other persons specified in parts one, two, and three of this Article who are entitled to an old-age pension, and for persons with Group I or Group II disabilities, tax must be not less than 50 percent of the prescribed minimum amount. These reliefs are granted on the basis of a pension certificate or a certificate from a medical and social expert commission. If entitlement to a relief arises or terminates during a calendar year, tax is recalculated from the month in which the entitlement arose or terminated.

[Parts two and three of Article 408 replaced by parts two, three, and four by Law of the Republic of Uzbekistan No. ZRU-847 of June 16, 2023; National Database of Legislation, June 17, 2023, No. 03/23/847/0384. This provision also applies to relations arising from January 1, 2023.]

Tax is paid:

by the persons specified in part one of this Article, monthly no later than the fifteenth day of the month in which business activity was conducted;

by the persons specified in parts two and three of this Article, by December 31 of the reporting year. The amount of tax is calculated using the base calculation amount in effect on the payment date.

[The third textual paragraph of part five of Article 408 as revised by Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067; effective January 1, 2025.]

Newly registered individual entrepreneurs and family members conducting activities as a family business without forming a legal entity begin paying tax in the month following the month in which they are registered by the state as an individual entrepreneur.

Responsibility for paying tax rests:

for family members conducting activities as a family business without forming a legal entity, with the family member registered as an individual entrepreneur and acting on behalf of the family-business entity;

for individuals in an employment relationship with an individual entrepreneur, with the individual entrepreneur with whom they entered into the employment agreement.

[The third textual paragraph of part seven of Article 408 as revised by Law of the Republic of Uzbekistan No. ZRU-847 of June 16, 2023; National Database of Legislation, June 17, 2023, No. 03/23/847/0384. This provision also applies to relations arising from January 1, 2023.]

A payment order or cash receipt order must state the surname, given name, patronymic, taxpayer identification number, and period for which payment is made. For family members participating in a family business and for employees hired by an individual entrepreneur, a separate payment order or cash receipt order must be issued for each family member and each hired employee. If the payment order or cash receipt order does not state a period, payment is deemed made for the month in which it is made, or, for members of dehkan farms, individuals employed in a dehkan farm, and the individuals specified in the fifth textual paragraph of part three of this Article, for the year in which it is made.

[Part eight of Article 408 as revised by Law of the Republic of Uzbekistan No. ZRU-847 of June 16, 2023; National Database of Legislation, June 17, 2023, No. 03/23/847/0384. This provision also applies to relations arising from January 1, 2023.]

Information received by the tax authorities concerning the temporary suspension of an individual entrepreneur's activity is grounds for suspending accrual of tax for the period during which the individual entrepreneur will not conduct activity.

Employment record cards issued under the prescribed procedure for each hired employee and received by the tax authorities are grounds for suspending accrual of tax for each employee of the individual entrepreneur for the period during which the individual entrepreneur will not conduct activity.

If an individual entrepreneur that has suspended activity fails to submit to the tax authority, within the prescribed period, the employment record cards for each of the individual entrepreneur's employees, accrual of tax on the individual entrepreneur's obligations is not suspended.

The taxpayers specified in part one and in the fifth textual paragraph of part three of this Article may, on the basis of an application for voluntary payment of tax submitted together with the return of total annual income, pay tax on the amount of employment income reported in that return at the rates specified in Article 405 of this Code, but not less than the minimum amounts established by this Article. The final tax payable is determined taking into account amounts paid under parts one through six of this Article.

[Part twelve of Article 408 as revised by Law of the Republic of Uzbekistan No. ZRU-847 of June 16, 2023; National Database of Legislation, June 17, 2023, No. 03/23/847/0384. This provision also applies to relations arising from January 1, 2023.]

Article 410. Taxpayers

Taxpayers of the tax on the property of legal entities (hereinafter in this Chapter referred to as "taxpayers") are recognized as:

1. legal entities of the Republic of Uzbekistan that have property in the territory of the Republic of Uzbekistan that is an object of taxation in accordance with Article 411 of this Code;
2. legal entities that are non-residents of the Republic of Uzbekistan that own immovable property in the territory of the Republic of Uzbekistan.

Where the location of the owner of immovable property cannot be established, the taxpayer is the person in whose possession and/or use that property is located.

Where a legal entity acquires immovable property in finance lease (leasing), it is also recognized as a taxpayer, with the exception of the cases specified in Article 480.6 of this Code.

Article 411. Object of Taxation

The object of taxation for legal-entity property tax, hereinafter in this Chapter referred to as the tax, is immovable property.

Immovable property includes:

1. buildings and structures subject to registration with the bodies responsible for state registration of rights to immovable property;

2. construction in progress. Construction in progress means a facility whose construction has not been completed within the standard construction period established by its design and estimate documentation or, if no standard period is established, within twenty-four months beginning with the month in which the authorized body's permit to construct the facility was received;

3. railway tracks, trunk pipelines, communications lines, electric-power lines, and structures constituting an integral technological part of those facilities;

4. residential immovable property recorded on the balance sheet of a construction organization or developer for subsequent sale, after six months have elapsed from commissioning of the immovable property.

The following immovable property is not an object of taxation:

1. property used by nonprofit organizations in conducting nonprofit activities;

2. housing and utility infrastructure and other municipal infrastructure for general public use that is used for its designated purpose. Housing and utility infrastructure and other municipal infrastructure for general public use includes sanitation, improvement, and landscaping facilities; outdoor lighting in cities and communities; wastewater networks, including wastewater-treatment facilities; water-supply networks, including water-intake and treatment facilities; gas, boiler-house, and heat-distribution networks, including related structures, serving household and public needs; buildings intended for technical servicing and repair of housing and utility facilities; services provided by management organizations or managers of apartment buildings for the management, technical maintenance, and repair of common property and improvement of land adjoining apartment buildings; and common property of owners of premises in apartment buildings that is located in those buildings;

[Item 2 of part three of Article 411 as revised by Law of the Republic of Uzbekistan No. ZRU-951 of August 29, 2024; National Database of Legislation, August 30, 2024, No. 03/24/951/0673.]

3. public roads;

4. irrigation and collector-drainage networks;

5. civil-protection and mobilization facilities recorded on the taxpayer's balance sheet and not used in business activity;

6. property used for environmental-protection, sanitation, and fire-safety purposes. Classification of property as used for those purposes is based on a certificate from the relevant environmental-protection or fire-safety body;

7. land plots;

8. buildings owned by Mahalla Service companies and intended for work connected with improving mahallas and providing mahalla residents with certain socially significant fee-based services established by legislation.

Article 412. Tax Base

The tax base is:

1. for the objects provided for in paragraphs 1 and 3 of the second part of Article 411 of this Code – the average annual residual value.

The residual value of immovable property is determined as the difference between the initial (replacement) value of that property and the amount of depreciation calculated using the methods established by the taxpayer's tax-accounting policy.

For the purpose of calculating the tax, the tax base for the objects provided for in paragraph 1 of the second part of Article 411 of this Code may not be less than the minimum value established in absolute terms per 1 sq. m in the following amounts:

in the city of Tashkent – three million five hundred thirty thousand soums;

in the city of Nukus and regional centers – two million three hundred fifty thousand soums;

in other cities and rural areas – one million three hundred ninety thousand soums.

The Jokargy Kenes of the Republic of Karakalpakstan and the Kengashes of people's deputies of the regions may introduce in districts a decreasing coefficient of up to 0.5 applied to the minimum value established by this paragraph, depending on their level of economic development.

A taxpayer is entitled to commission an independent valuation of immovable property objects if the value per 1 sq. m of the object is below the minimum value established by this paragraph. The results of the independent valuation, including valuations conducted by the taxpayer in the preceding two years, are recognized as the tax base. (Eighth paragraph of paragraph 1 of the first part of Article 412 as amended by Law of the Republic of Uzbekistan No. ZRU-785 of July 26, 2022 – National Legislation Database, July 27, 2022, No. 03/22/785/0679 – the provisions of this paragraph also apply to relations that arose from January 1, 2022.)

The objects of immovable property to which the minimum value established by this paragraph does not apply are determined by legislation. (Paragraph 1 of the first part of Article 412 was supplemented with a ninth paragraph by Law of the Republic of Uzbekistan No. ZRU-785 of July 26, 2022 – National Legislation Database, July 27, 2022, No. 03/22/785/0679 – the provisions of this paragraph also apply to relations that arose from January 1, 2022.)

2. for the objects provided for in paragraph 2 of the second part of Article 411 of this Code – the average annual value of construction in progress;

3. for the objects provided for in paragraph 4 of the second part of Article 411 of this Code – the average annual value of those objects (in the part not sold);

4. the average annual residual value of a state-owned real estate object acquired by the buyer on installment-payment terms, in the share (percentage) proportional to the portion of the buyout payments for that object paid by the buyer, where a state warrant bearing the notation "without disposition rights" has been issued to the buyer for that object.

In this case, taxes are collected subject to compliance with the installment payment schedule for the buyout payments for the state-owned real estate object. That schedule is submitted by the Agency for State Asset Management to the Tax Committee through information systems.

The tax base for immovable property of non-residents of the Republic of Uzbekistan is the average annual value of that property.

Article 414. Tax Reliefs

In calculating tax, the tax base is reduced by the average annual residual value, or average annual value, of:

1. cultural and arts, education, healthcare, physical-culture and sports, and social-welfare facilities, except sanatorium-resort facilities located in tourist zones;

[Item 1 of part one of Article 414 as revised by Law of the Republic of Uzbekistan No. ZRU-659 of December 30, 2020; National Database of Legislation, December 31, 2020, No. 03/20/659/1681; effective January 1, 2021.]

2. property recorded on the balance sheet of agricultural enterprises and used to produce and store agricultural products or raise silkworms;

3. new oil and gas wells, for two years beginning with the month in which they are commissioned;

[Part one of Article 414 supplemented by item 3 by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021; National Database of Legislation, December 30, 2021, No. 03/21/741/1219.]

4. for taxpayers that introduce the manufacture of products using high-technology production included in a list approved by a resolution of the President of the Republic of Uzbekistan, the portion of facilities occupied by high-technology production equipment, for three years from the commissioning date of that equipment.

For new oil and gas wells, after expiration of the tax relief provided by item 3 of part one of this Article, a rate equal to 50 percent of the prescribed tax rate applies for three years.

[Article 414 supplemented by part two by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021; National Database of Legislation, December 30, 2021, No. 03/21/741/1219.]

The following are exempt from tax:

1. legal entities whose sole members are public associations of persons with disabilities, where persons with disabilities constitute at least 50 percent of the total workforce and their payroll constitutes at least 50 percent of total payroll;

2. renewable-energy installations having an aggregate capacity of:

up to 100 kW, for three years from the month in which the installations are commissioned or, where solar panels are installed together with an electricity-storage system whose capacity is at least 25 percent of the solar-panel capacity, for ten years from the month in which those panels are commissioned;

100 kW or more, for ten years from the month in which they are commissioned;

[Item 2 of part three of Article 414 as revised by Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067; effective January 1, 2025.]

3. antenna-mast steel structures located in rural areas, except cities and district centers, including structures installed on them that constitute an integral part of them.

[Part three of Article 414 supplemented by item 3 by Law of the Republic of Uzbekistan No. ZRU-785 of July 26, 2022; National Database of Legislation, July 27, 2022, No. 03/22/785/0679. This item also applies to relations arising from April 1, 2022.]

For newly constructed multistory production buildings, except buildings located in cities of the republic and in the Zangiata, Kibray, and Tashkent districts of Tashkent Region, taxpayers pay the assessed tax using a reduction coefficient of 0.9 for a three-story building, 0.8 for a four-story building, 0.7 for a five-story building, 0.6 for a six-story building, and 0.5 for a building of seven or more stories, beginning with the month in which the building is commissioned and for no more than three years. The reduction coefficient established by this part applies:

taking into account auxiliary premises necessary for manufacturing products, including office premises and premises for selling products manufactured by the taxpayer, and educational-production premises organized for learning a relevant occupation, provided their area does not exceed 20 percent of the total area of the newly constructed multistory production building;

to each owner of the building if several business entities jointly use the building for production purposes.

[Article 414 supplemented by part four by Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067; effective January 1, 2025. This provision also applies to newly constructed multistory production buildings commissioned after January 1, 2023.]

[OKOZ classification: 1.07.00.00.00 Legislation on Finance and Credit; Banking Activity / 07.11.00.00 (no longer in force) Local Taxes and Fees / 07.11.01.00 (no longer in force) Property Tax / 07.11.01.02 (no longer in force) Property-Tax Rates.]

Article 415. Tax Rates

The tax rate is 1.5 percent unless otherwise provided by this Article.

[Part one of Article 415 as revised by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021; National Database of Legislation, December 30, 2021, No. 03/21/741/1219.]

The tax rate for construction not completed within the standard construction period is 3 percent.

[Part two of Article 415 as revised by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145. This provision also applies to relations arising from July 1, 2022.]

[Part three of Article 415 repealed by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145. This provision also applies to relations arising from July 1, 2022.]

The tax rate is 0.7 percent for:

1. public railway tracks, trunk pipelines, communications lines, electric-power lines, and structures constituting an integral technological part of those facilities;

2. immovable property and construction in progress whose conservation has been ordered by a decision of the Cabinet of Ministers of the Republic of Uzbekistan.

Article 417. Procedure for Calculating Tax, Filing Tax Returns, and Paying Tax

Taxpayers independently calculate tax using the tax base determined under Article 412 of this Code and the applicable tax rate.

A tax return is filed with the tax authority at the place of tax registration once a year, no later than March 1 of the year following the reporting tax period.

[Part two of Article 417 as revised by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

If immovable property, other than the facilities specified in item 3 of part two of Article 411 of this Code, is located outside the taxpayer's place of tax registration, the tax return is filed with the tax authority at the location of the immovable property.

During the tax period, taxpayers, other than legal entities that are nonresidents of the Republic of Uzbekistan and do not conduct activities in the Republic of Uzbekistan through permanent establishments, make advance tax payments.

To calculate advance payments, taxpayers submit to the tax authorities, no later than January 20 of the current tax period or, for a newly established taxpayer, no later than thirty days after state registration, a statement of the amount of tax for the current tax period calculated on the basis of the estimated tax base, meaning the average annual residual value or average annual value of property for the relevant year, and the applicable tax rate. A taxpayer whose tax obligation arises during the tax period submits the statement no later than thirty days after the tax obligation arises.

[Part five of Article 417 as revised by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

Advance payments calculated under part four of this Article are paid:

by turnover-tax payers, no later than the twentieth day of the third month of each quarter, in an amount equal to one fourth of the annual tax;

[The second textual paragraph of part six of Article 417 as revised by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

by taxpayers that are not turnover-tax payers, no later than the tenth day of each month, in an amount equal to one twelfth of the annual tax; the payment for January is due no later than January 20.

[The third textual paragraph of part six of Article 417 as revised by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

If the estimated tax base changes during the tax period, the taxpayer may submit an amended statement of the amount of tax. Advance payments for the remainder of the tax period are adjusted in equal installments by the amount of the change in tax.

Tax payable for the tax period, taking advance payments into account, is paid into the budget no later than the tax-return filing deadline.

If advance tax payments for the tax period are understated by more than 10 percent in comparison with the tax payable into the budget as stated in the tax return, the tax authority recalculates the advance payments using the actual tax and charges late-payment interest.

Nonresidents of the Republic of Uzbekistan that do not conduct activities in the Republic of Uzbekistan through permanent establishments pay tax once a year, no later than February 15 of the year following the reporting tax period.

Chapter 60. Property Tax on Individuals

Article 419. Object of Taxation

The object of taxation of the tax on the assets of individuals (hereinafter in this Chapter referred to as “tax”) must be the following property situated in the territory of the Republic of Uzbekistan:

1. residential houses, apartments, summer cottages;
2. non-residential immovable property objects, intended for entrepreneurial activity and (or) deriving income;
3. objects of construction in progress for non-residential purposes. Non-residential construction objects in progress must include objects the construction of which has not been completed within the standard time limit established by the design and estimate documentation for the construction of this object, and, where the standard construction time limit has not been established, within twenty four months starting from the month in which the permit for the construction of this facility was obtained from the authorized body;
4. a parking space inseparably connected with an apartment building, as well as other buildings, premises and structures.

Article 420. Tax Base

The tax base is the cadastral value of the objects of taxation, as determined by the body responsible for state registration of rights to immovable property.

For purposes of calculating tax, the tax base:

for the objects provided for by items 1, 3, and 4 of Article 419 of this Code, may not be less than forty-two million soums;

per square meter of the objects provided for by item 2 of Article 419 of this Code, may not be less than the minimum value established by the fourth, fifth, and sixth textual paragraphs of item 1 of part one of Article 412 of this Code. The seventh, eighth, and ninth textual paragraphs of item 1 of part one of Article 412 also apply to the objects provided for by item 2 of Article 419;

[Part two of Article 420 as revised by Law of the Republic of Uzbekistan No. ZRU-891 of December 28, 2023; National Database of Legislation, December 29, 2023, No. 03/23/891/0989; effective January 1, 2024.]

for state-owned immovable property acquired by a purchaser on installment terms, is the average annual residual value of the property in the share or percentage proportional to the portion of the redemption payments paid by the purchaser, if the purchaser was issued a state order for the property bearing the notation "without right of disposition."

Tax is collected provided that the installment-payment schedule for the redemption payments on the state-owned immovable property is observed. The State Assets Management Agency submits that schedule to the Tax Committee through information systems.

The provisions of the third textual paragraph of part two of this Article do not apply to immovable property provided for producing and storing agricultural products or raising silkworms.

[Article 420 supplemented by part three by Law of the Republic of Uzbekistan No. ZRU-891 of December 28, 2023; National Database of Legislation, December 29, 2023, No. 03/23/891/0989; effective January 1, 2024.]

If the authorized body for valuing individuals' property has not valued an object of taxation, the tax base is the notional value of the property: in the cities of Tashkent and Nukus and in regional centers, five times the amount specified in the second textual paragraph of part two of this Article; in other cities and rural areas, twice that amount.

[Part four of Article 420 as revised by Law of the Republic of Uzbekistan No. ZRU-891 of December 28, 2023; National Database of Legislation, December 29, 2023, No. 03/23/891/0989; effective January 1, 2024.]

If the taxpayer for several objects of taxation is the same individual, the tax base is calculated separately for each object.

Article 421. Tax Reliefs

Property owned by the following persons is exempt from taxation:

1. persons awarded the title Hero of Uzbekistan or Hero of the Soviet Union or Hero of Labor, or awarded the Order of Glory in all three classes.

This relief is granted on the basis of the certificate awarding the title Hero of Uzbekistan, the certificate of a Hero of the Soviet Union or Hero of Labor, the order certificate, or a certificate from the defense-affairs department, as applicable;

2. persons with war-related disabilities and war veterans, and persons treated as equivalent to them, whose categories are established by legislation.

This relief is granted on the basis of the relevant certificate of a person with a war-related disability or war veteran, a certificate from the defense-affairs department or other authorized body, or, for other persons with disabilities or participants, a certificate confirming entitlement to relief.

[Item 2 of part one of Article 421 as revised by Law of the Republic of Uzbekistan No. ZRU-770 of May 17, 2022; National Database of Legislation, May 18, 2022, No. 03/22/770/0424.]

3. parents and widows or widowers of military personnel and employees of the internal-affairs bodies and National Guard of the Republic of Uzbekistan who died as a result of a wound, concussion, or injury sustained while defending the former USSR or the constitutional order of the Republic of Uzbekistan, while performing other military duties or duties in the internal-affairs bodies or National Guard of the Republic of Uzbekistan, or as a result of an illness connected with service at the front.

This relief is granted on the basis of a pension certificate bearing the stamp "Widow (Widower, Mother, Father) of a Fallen Serviceman," "Widow (Widower, Mother, Father) of a Fallen Internal-Affairs Officer," or "Widow (Widower, Mother, Father) of a Fallen Officer of the National Guard of the Republic of Uzbekistan," or containing a corresponding entry certified by the signature of the head and seal of the institution that issued the pension certificate.

If those persons are not pensioners, the relief is granted on the basis of a certificate of the death of the military servicemember or employee of the internal-affairs bodies or National Guard of the Republic of Uzbekistan issued by the relevant bodies of the Ministry of Defense, State Security Committee, or Ministry of Internal Affairs of the former USSR; the Ministry of Defense, State Security Service, Ministry of Internal Affairs, Ministry of Emergency Situations, National Guard, or State Security Service of the President of the Republic of Uzbekistan; the State Customs Committee of the Republic of Uzbekistan; or another agency in which military service is provided for.

The relief is granted to a widow or widower of military personnel or employees of the internal-affairs bodies or National Guard of the Republic of Uzbekistan who died while defending the former USSR or the constitutional order of the Republic of Uzbekistan, while performing other military duties or duties in the internal-affairs bodies or National Guard of the Republic of Uzbekistan, or as a result of an illness connected with service at the front, only if the widow or widower has not remarried.

[Item 3 of part one of Article 421 as revised by Law of the Republic of Uzbekistan No. ZRU-726 of October 29, 2021; National Database of Legislation, October 30, 2021, No. 03/21/726/1001.]

[Deletion date for item 4 of part one of Article 421 under Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024: January 1, 2025; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067.]

5. orphaned children and children deprived of parental care. This relief applies to residential premises allocated by the state to orphaned children and children deprived of parental care until they reach twenty-three years of age.

[Part one of Article 421 supplemented by item 5 by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021; National Database of Legislation, December 30, 2021, No. 03/21/741/1219.]

Up to sixty square meters of property owned by the following persons is exempt from taxation:

1. one parent having ten or more children. This relief is granted on the basis of a certificate from a citizens' self-government body confirming the existence of the children;

2. pensioners. This relief is granted on the basis of a pension certificate;

3. persons with Group I or Group II disabilities. This relief is granted on the basis of a pension certificate or a certificate from a medical and labor expert commission.

For persons using renewable-energy sources with an aggregate capacity of up to 100 kW at residential immovable property, the amount of tax is reduced by an amount not exceeding twice the base calculation amount for three years beginning with the month in which the renewable-energy installations are installed or, where solar panels are installed together with an electricity-storage system whose capacity is at least 25 percent of the solar-panel capacity, for ten years from the month in which those panels are commissioned. This relief is granted only once for one item of residential immovable property, on the basis of a certificate from the energy-supply organization confirming the individual's use of renewable-energy sources, and applies where the individual installs renewable-energy installations with an aggregate capacity exceeding 1 kW.

[Article 421 supplemented by part three by Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067; effective January 1, 2025.]

Persons entitled to the tax reliefs specified in this Article independently submit documents confirming entitlement to the tax authority at the location of the object of taxation.

Except for the persons specified in part three of this Article, the tax reliefs established by this Article apply only to one item of residential immovable property selected by the owner.

[Part five of Article 421 as revised by Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067; effective January 1, 2025.]

Article 422. Tax Rates; Tax Period

Tax rates are established as follows:

For newly erected residential houses not registered with the bodies responsible for state registration of rights to immovable property, twice the tax rate is applied to the property's notional value on the basis of information provided by those bodies.

Taking into account territorial characteristics and the place where activities are conducted, the Jokargy Kenes of the Republic of Karakalpakstan and the Kengashes of People's Deputies of the regions and the city of Tashkent may establish reduction or increase coefficients between 0.7 and 1.3 for the prescribed tax rates.

If an individual or family enterprise uses residential premises to produce goods or services while also residing there, tax is paid at the rates specified in items 1 through 3 of part one of this Article.

For nonresidential construction not completed within the standard construction period, the tax rate is 3 percent.

[Part five of Article 422 as revised by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145. This provision also applies to relations arising from July 1, 2022.]

[Part six of Article 422 repealed by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145. This provision also applies to relations arising from July 1, 2022.]

The tax period is the calendar year.

Article 423. Procedure for Calculating and Paying Tax

Tax is calculated by the tax authorities at the location of the object of taxation:

for the objects provided for by items 1, 3, and 4 of Article 419 of this Code, on the basis of data from the body responsible for state registration of rights to immovable property;

for the objects provided for by item 2 of Article 419 of this Code, on the basis of data from the body responsible for state registration of rights to immovable property and the third textual paragraph of part two and part three of Article 420 of this Code.

[Part one of Article 423 as revised by Law of the Republic of Uzbekistan No. ZRU-891 of December 28, 2023; National Database of Legislation, December 29, 2023, No. 03/23/891/0989; effective January 1, 2024.]

The amount of tax is calculated using the tax base determined as of January 1 in accordance with Article 420 of this Code and the prescribed tax rate.

[Part two of Article 423 as revised by Law of the Republic of Uzbekistan No. ZRU-891 of December 28, 2023; National Database of Legislation, December 29, 2023, No. 03/23/891/0989; effective January 1, 2024.]

The taxpayer may submit to the tax authority at the location of nonresidential immovable property intended for business activity and/or earning income the results of an independent valuation conducted by a valuation organization, including a valuation conducted within the preceding two years, if available, and a list of immovable property to which the minimum value prescribed by legislation does not apply.

[Article 423 supplemented by part three by Law of the Republic of Uzbekistan No. ZRU-891 of December 28, 2023; National Database of Legislation, December 29, 2023, No. 03/23/891/0989; effective January 1, 2024.]

For buildings, premises, and structures jointly owned in shares by several owners, each owner pays tax in proportion to that owner's share in them.

If ownership of property passes from one owner to another during a calendar year, the former owner pays tax from January 1 of that year through the beginning of the month in which ownership was lost, and the new owner pays tax beginning with the month in which ownership arose.

For new buildings, premises, and structures, tax is paid beginning with the month in which ownership arises.

For inherited property, tax is paid beginning with the month in which the heir's ownership arises.

If an object of taxation is destroyed or demolished, tax collection ceases beginning with the month in which the property was destroyed or demolished. Tax is recalculated if documents issued by the local representative body of state power or a citizens' self-government body confirm the destruction or demolition of the object.

If entitlement to a relief arises or terminates during a calendar year, tax is recalculated from the month in which the entitlement arose or terminated.

Each year, no later than March 1, the tax authorities deliver to taxpayers, against signature, a payment notice for the tax or transmit it electronically to the taxpayer's personal account, if available, by SMS notification to a mobile-telephone number registered in the taxpayer's name, to the tax authorities' special mobile application, or by another method confirming the fact and date of receipt.

[Part ten of Article 423 as revised by Law of the Republic of Uzbekistan No. ZRU-891 of December 28, 2023; National Database of Legislation, December 29, 2023, No. 03/23/891/0989; effective January 1, 2024.]

Tax for the tax period is paid in equal installments by April 15 and October 15.

SECTION XVI. LAND TAX

[OKOZ classification: 1.07.00.00.00 Legislation on Finance and Credit; Banking Activity / 07.11.00.00 (no longer in force) Local Taxes and Fees / 07.11.02.00 Land Tax / 07.11.02.01 Payers and Object of Land Taxation.]

Chapter 61. Land Tax on Legal Entities

Article 424. General Provisions

Payments to the budget for the use of land plots are made in the form of land tax or land rent.

The rent payable for land plots provided under a land plot lease agreement concluded with the hokim of the district (city), and also with state bodies, institutions, and organizations possessing the right of permanent use in the manner established by legislation, and registered with the state registration bodies for rights to immovable property, is equated to the land tax. Legal entities that have received land plots on lease are subject to the tax rates, tax incentives, and the procedure for calculating the tax, submitting tax reporting, and paying the tax, established for land tax payers that are legal entities.

Legal entities pay land tax on land plots used on the basis of ownership, possession, use, or lease rights.

Article 426. Object of Taxation

The object of taxation by the land tax on legal entities (hereinafter in this Chapter referred to as "the tax") are land plots that legal entities hold on the basis of ownership, possession, use, or lease rights.

The following land plots are not objects of taxation:

1. used by non-commercial organizations in the course of carrying out non-commercial activities;

2. of general use in settlements, horticultural, viticultural, or gardening associations (squares, streets, driveways, roads, access roads, irrigation networks, collectors, embankments, and other common-use lands);

3. occupied by public-use roads;

4. used for meeting the cultural, household, and recreational needs of the population (forest parks, parks, boulevards, squares, places of mass recreation and tourism of the population, and also the lands of the ariq network); (Paragraph 4 of the second part of Article 426 as amended by Law of the Republic of Uzbekistan No. ZRU-659 of December 30, 2020 – National Legislation Database, December 31, 2020, No. 03/20/659/1681 – Takes effect from January 1, 2021.)

5. occupied by state nature reserves, complex (landscape) wildlife refuges, natural parks, state natural monuments, wildlife refuges (except for those formed within hunting enterprises), natural nurseries, state biosphere reserves, and national parks;

6. of health-improving purpose – land plots possessing natural healing factors favorable for organizing disease prevention and treatment, provided to the relevant institutions and organizations for permanent use;

7. of recreational purpose – land plots provided to the relevant institutions and organizations for organizing mass recreation and tourism of the population;

8. of historical and cultural purpose – land plots occupied by objects of material cultural heritage and memorial parks, provided to the relevant institutions and organizations for permanent use;

9. occupied by hydrometeorological and hydrogeological stations and posts;

10. occupied by separately situated objects of civil protection and mobilization purpose recorded on the balance sheet of a legal entity;

11. of municipal and household purpose (in particular, burial places, places for the collection, transshipment, and sorting of household, construction, and other waste, and also places for the neutralization and disposal of waste); (Paragraph 11 of the second part of Article 426 as amended by Law of the Republic of Uzbekistan No. ZRU-659 of December 30, 2020 – National Legislation Database, December 31, 2020, No. 03/20/659/1681 – Takes effect from January 1, 2021.)

12. occupied by multi-apartment residential buildings and dormitories, and also land plots adjacent to multi-apartment residential buildings, except for land plots occupied by non-residential-purpose real estate objects; (Paragraph 12 of the second part of Article 426 as amended by Law of the Republic of Uzbekistan No. ZRU-773 of May 31, 2022 – National Legislation Database, June 1, 2022, No. 03/22/773/0461.)

13. of the water fund;

14. of the land reserve;

15. allocated for the carrying out of geological exploration and/or survey work; (The second part of Article 426 was supplemented with paragraph 15 by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021 – National Legislation Database, December 30, 2021, No. 03/21/741/1219.)

16. on which buildings owned by "Mahalla service" companies are situated, those buildings being intended for carrying out work connected with the improvement of mahallas and the provision to mahalla residents of certain types of socially significant paid services established by legislation;

17. pasture lands in the permanent use of territorial pasture farms established in the form of state institutions under the founding authority of the Committee for Veterinary and Animal Husbandry Development under the Ministry of Agriculture of the Republic of Uzbekistan.

Where the land plots specified in the second part of this Article are used for conducting economic activity, they are objects of taxation in the manner established by this Chapter.

Article 427. Tax Base

The tax base is:

for non-agricultural land – the total area of the non-agricultural land plot, minus the areas of land plots not subject to taxation in accordance with the second part of Article 428 of this Code;

for agricultural land – the standard value of land plots determined in accordance with legislation, minus the land plots not subject to taxation in accordance with the second part of Article 428 of this Code; (Third paragraph of the first part of Article 427 as amended by Law of the Republic of Uzbekistan No. ZRU-659 of December 30, 2020 – National Legislation Database, December 31, 2020, No. 03/20/659/1681 – Takes effect from January 1, 2021.)

the land tax for the buyer who has acquired a state-owned real estate object on installment-payment terms, for the non-agricultural land occupied by that object – the land area in the share (percentage) proportional to the portion of the buyout payments for that object paid by the buyer, where a state warrant bearing the notation "without disposition rights" has been issued to the buyer for that object.

In this case, taxes are collected subject to compliance with the installment payment schedule for the buyout payments for the state-owned real estate object. That schedule is submitted by the Agency for State Asset Management to the Tax Committee through information systems.

For land plots in respect of which the right of ownership, possession, use, or lease passed to the taxpayer during the year, the tax base is calculated starting from the next month after the corresponding right to the land plots arises. In the event of a decrease in the area of a land plot, the tax base is reduced from the month in which the decrease in area occurred.

Where legal entities acquire the right to a tax incentive, the tax base is reduced from the month in which that right arose. Where the right to a tax incentive ceases, the tax base is calculated (increased) from the month following the month in which that right ceased.

Where a taxpayer carries out types of activity for which the tax is not provided, the tax base is determined on the basis of maintaining separate records of taxable and non-taxable land. Where the maintenance of separate records is not possible, the tax base is determined on the basis of the proportion of net revenue from activities for which the tax is provided to total net revenue.

Article 428. Tax Reliefs

[Deletion date for part one of Article 428 under Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024: January 1, 2025; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067.]

Land plots not subject to taxation include land:

occupied by cultural, education, healthcare, and social-welfare facilities, except land occupied by sanatorium-resort facilities located in tourist zones;

[The second textual paragraph of part two of Article 428 as revised by Law of the Republic of Uzbekistan No. ZRU-659 of December 30, 2020; National Database of Legislation, December 31, 2020, No. 03/20/659/1681; effective January 1, 2021.]

occupied by sports and physical-fitness complexes, training bases, and children's health camps;

[The third textual paragraph of part two of Article 428 as revised by Law of the Republic of Uzbekistan No. ZRU-659 of December 30, 2020; National Database of Legislation, December 31, 2020, No. 03/20/659/1681; effective January 1, 2021.]

occupied by urban electric-transport tracks and metro lines, including land occupied by public-transport stops, metro stations, and structures on them;

occupied by water-supply and wastewater facilities serving populated localities, including trunk water conduits, water-supply networks, wastewater collectors and related structures, pumping stations, water-intake and treatment facilities, inspection wells and inverted siphons on water-supply and wastewater networks, water towers, and other similar structures;

[The fifth textual paragraph of part two of Article 428 as revised by Law of the Republic of Uzbekistan No. ZRU-951 of August 29, 2024; National Database of Legislation, August 30, 2024, No. 03/24/951/0673.]

occupied by trunk heating lines, including booster, pressure-reducing, mixing, and drainage pumping stations; heat-metering and control devices; heaters; hot-water circulation pumps; and other similar structures;

occupied by protective forest plantations. Protective forest plantations include restricted forest strips along rivers, lakes, reservoirs, and other bodies of water; restricted forest strips protecting the spawning grounds of valuable commercial fish; erosion-control forests; protective forest strips along railways and roads; forests in desert and semidesert zones; urban forests and forest parks; forests surrounding green zones of cities, other populated localities, and industrial centers; forests in sanitary-protection zones of water-supply sources; forests in sanitary-protection districts of natural resort areas; especially valuable forests; and forests of scientific or historical significance;

on which water-saving irrigation technology, including drip, sprinkler, discrete, or another technology, has been introduced, for five years from the beginning of the month in which the technology was introduced. This relief is granted on the basis of an opinion from the authorized body for water use and water consumption. If the water-saving irrigation technology becomes unfit for use or is dismantled within five years from the beginning of the month in which it was introduced, the relief is canceled and the tax-payment obligations are reinstated for the entire period in which the relief applied;

[The eighth textual paragraph of part two of Article 428 as revised by Law of the Republic of Uzbekistan No. ZRU-659 of December 30, 2020; National Database of Legislation, December 31, 2020, No. 03/20/659/1681; effective January 1, 2021.]

newly developed for agricultural purposes, during the development work and for five years after development in accordance with a project approved by the authorized body;

under existing irrigation where land-reclamation work is carried out, for five years from the commencement of work in accordance with a project approved by the authorized body;

[Deletion date for the eleventh textual paragraph of part one of Article 428 under Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024: January 1, 2025; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067.]

constituting agricultural land or forest-fund land of scientific organizations, experimental and educational-experimental farms of research organizations, and agricultural or forestry educational institutions and used directly for scientific and educational purposes. Under this provision, land plots occupied by crops and plantations used for approved scientific experiments, experimental work, breeding new varieties, and other scientific and educational purposes are exempt from tax;

occupied by antenna-mast steel structures located in rural areas, except cities and district centers, and structures installed on them that constitute an integral part of them;

[Part two of Article 428 supplemented by the thirteenth textual paragraph by Law of the Republic of Uzbekistan No. ZRU-785 of July 26, 2022; National Database of Legislation, July 27, 2022, No. 03/22/785/0679. This textual paragraph also applies to relations arising from April 1, 2022.]

occupied by stand-alone renewable-energy installations having an aggregate capacity of:

up to 100 kW, for three years from the month in which the installations are commissioned or, where solar panels are installed together with an electricity-storage system whose capacity is at least 25 percent of the solar-panel capacity, for ten years from the month in which those panels are commissioned;

100 kW or more, for ten years from the month in which they are commissioned.

[Part one of Article 428 supplemented by the thirteenth, fourteenth, and fifteenth textual paragraphs by Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067; effective January 1, 2025.]

For land plots occupied by new orchards, vineyards, or mulberry plantations, irrespective of whether the spaces between rows are used to grow agricultural crops, tax is paid for five years at rates reduced by 50 percent. For land plots on which new orchards and vineyards are not established within twelve months after the authorized body issues an opinion recognizing the orchards and vineyards as economically inefficient and low-yielding, the tax rate is increased threefold.

For new saplings planted in autumn, calculation of the tax-relief period specified in part two of this Article begins on January 1 of the following year; for new saplings planted in spring, it begins on January 1 of the current tax period.

The tax reliefs established by this Article do not apply to land plots used other than for their designated purpose.

[Part two of Article 428 replaced by parts two, three, and four by Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067; effective January 1, 2025.]

[OKOZ classification: 1.07.00.00.00 Legislation on Finance and Credit; Banking Activity / 07.11.00.00 (no longer in force) Local Taxes and Fees / 07.11.02.00 Land Tax / 07.11.02.02 Land-Tax Rates.]

Article 429. Tax Rates

The base tax rates for nonagricultural land are established by region of the republic as an absolute amount per hectare as follows:

The specific tax rates for nonagricultural land are determined as follows:

the Jokargy Kenes of the Republic of Karakalpakstan and the Kengashes of People's Deputies of the regions establish tax rates for nonagricultural land by district and city according to their economic development, using the base rates established by part one of this Article and reduction or increase coefficients between 0.5 and 2.0;

the Kengashes of People's Deputies of districts and cities introduce reduction or increase coefficients between 0.7 and 3.0 for the rates established by the second textual paragraph of part two of this Article or, in the city of Tashkent, for the base rates established by part one of this Article, by quarter, residential area, mahalla, and street within their territory.

Each year, by January 10, the Kengashes of People's Deputies of districts and cities submit the rates for the current tax period to the tax authority at the location of the nonagricultural land plot. Within five days, the tax authority at the location of the land plot must notify taxpayers of those rates.

[Part three of Article 429 as revised by Law of the Republic of Uzbekistan No. ZRU-891 of December 28, 2023; National Database of Legislation, December 29, 2023, No. 03/23/891/0989; effective January 1, 2024.]

The tax rate for agricultural land is 0.95 percent of the normative value of agricultural land.

[Part four of Article 429 as revised by Law of the Republic of Uzbekistan No. ZRU-659 of December 30, 2020; National Database of Legislation, December 31, 2020, No. 03/20/659/1681; effective January 1, 2021.]

The Jokargy Kenes of the Republic of Karakalpakstan and the Kengashes of People's Deputies of the regions and the city of Tashkent may apply reduction or increase coefficients between 0.5 and 1.2 to the rate established for agricultural land.

Tax on land occupied by greenhouses is paid at the rates established for agricultural land. The normative value of those land plots is determined under the procedure established by legislation.

For land occupied by buildings and structures recorded on the balance sheet of agricultural enterprises and used to produce and store agricultural products or raise silkworms, except facilities located on land plots held under a lease right and to which reliefs apply, tax is paid using a coefficient of 0.2 applied to the rates established by the Kengashes of People's Deputies of districts and cities.

[Article 429 supplemented by part five by Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067; effective January 1, 2025. This provision also applies to relations arising from January 1, 2024.]

A coefficient of 0.1 is applied to the tax rates for land plots occupied by legal entities whose sole members are public associations of persons with disabilities, where persons with disabilities constitute at least 50 percent of the total workforce and their payroll constitutes at least 50 percent of total payroll.

A coefficient of 0.48 is applied to the tax rates for land plots occupied by:

[The second textual paragraph of part six of Article 429 repealed by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021; National Database of Legislation, December 30, 2021, No. 03/21/741/1219.]

electric-power lines, substations, and related structures;

national communications lines, including overhead and cable communications lines, pole-mounted and wired-radio lines, underground cable lines and the signal and measurement markers designating them, radio-relay lines, telephone cable ducts, above-ground and underground unattended repeater stations, distribution cabinets, grounding-loop boxes, and other communications structures;

public railway tracks, including station and classification-yard tracks consisting of the roadbed, artificial structures, linear track buildings, railway communications and power-supply devices, structures and track equipment, and protective forest plantations granted under the prescribed procedure for permanent or temporary use to railway-transport enterprises, institutions, and organizations;

trunk oil and gas pipelines, including compressor, pumping, firefighting, and emergency-response stations; pipeline cathodic-protection stations and their connection assemblies; pipeline-cleaning devices; and other similar structures;

runways, taxiways, aircraft parking areas, and radio-navigation and electric-lighting equipment of civil-aviation airports;

land allocated for construction of facilities included in the State Development Programs of the Republic of Uzbekistan, during the standard construction period;

facilities whose conservation has been ordered by a decision of the Cabinet of Ministers of the Republic of Uzbekistan, during the conservation period.

Parts eight and nine of this Article apply to land plots allocated to legal entities under the prescribed procedure.

For the facilities provided for by the second through fifth textual paragraphs of part nine of this Article, the coefficient of 0.48 is applied to the average tax rate established for each district and city of the republic. The tax authority at the location of the nonagricultural land plot determines the average tax rate for each district and city on the basis of rates established by the Kengashes of People's Deputies of districts and cities and notifies taxpayers of those rates annually by January 5.

If the quality of agricultural land deteriorates, meaning its soil-quality score decreases, through the fault of the landowner, landholder, land user, or lessee, legal entities pay tax on the normative value of the agricultural land using the soil-quality score that existed before the deterioration.

If the quality of agricultural land improves, meaning its soil-quality score increases, legal entities pay tax on the normative value of the agricultural land using the new soil-quality score beginning with the year following the year in which the soil appraisal was conducted, without recalculation for the periods in which the agrotechnical measures were completed.

[Deletion date for part twelve of Article 429 under Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024: January 1, 2025; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067.]

For land plots occupied by construction in progress, tax is paid at twice the prescribed rates unless otherwise provided by legislation, and tax reliefs and reduction coefficients established by legislation do not apply to those plots until construction is completed.

[Part twelve of Article 429 as revised by Law of the Republic of Uzbekistan No. ZRU-891 of December 28, 2023; National Database of Legislation, December 29, 2023, No. 03/23/891/0989; effective January 1, 2024.]

[Part thirteen of Article 429 repealed by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145. This provision also applies to relations arising from July 1, 2022.]

Construction in progress means a facility whose construction has not been completed within the standard construction period established by its design and estimate documentation or, if no standard period is established, within twenty-four months beginning with the month in which the authorized body's permit to construct the facility was received.

If land plots are used without documents or in an area larger than that specified in the documents confirming the right to the land plot, the tax rate is four times the prescribed tax rates.

For land occupied by mines and quarries, tax is paid using a coefficient of 0.1 applied to the rates established by the Kengashes of People's Deputies of districts and cities or, if the land is located in a rain-fed pasture zone, using a coefficient of 0.05.

[Part fourteen of Article 429 as revised by Law of the Republic of Uzbekistan No. ZRU-714 of September 14, 2021; National Database of Legislation, September 15, 2021, No. 03/21/714/0874. This provision also applies to relations arising from January 1, 2021.]

For land located in a rain-fed pasture zone, tax is paid using a coefficient of 0.3 applied to the rates established by the Kengashes of People's Deputies of districts and cities, except as provided by part seventeen of this Article.

Article 431. Procedure for Calculating Tax and Filing Tax Returns

Tax is calculated as of January 1 of each tax period, and the tax return is filed with the tax authority at the location of the land plot:

for nonagricultural land, no later than January 20 of the current tax period;

[The second textual paragraph of part one of Article 431 as revised by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

for agricultural land, no later than May 1 of the current tax period.

[The third textual paragraph of part one of Article 431 as revised by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

Taxpayers independently calculate tax using the tax base determined under Article 427 of this Code and the applicable tax rate.

If the tax base or calculated tax changes during the tax period, legal entities must file an amended tax return with the tax authority within one month.

Legal entities whose total area or composition of agricultural land changes during the tax period file an amended return for agricultural land with the tax authority by December 1 of the current year.

Legal entities having land plots occupied by the facilities specified in part two of Article 426 of this Code submit to the tax authority at the location of those facilities, no later than January 20 of the current tax period, a statement, in a form approved by the State Tax Committee of the Republic of Uzbekistan, concerning land plots held by the legal entity that are not objects of taxation.

[Part five of Article 431 as revised by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

Tax on land plots occupied by nonresidential immovable property located in apartment buildings is calculated using the area of the nonresidential immovable property divided by the number of stories.

[Article 431 supplemented by part six by Law of the Republic of Uzbekistan No. ZRU-659 of December 30, 2020; National Database of Legislation, December 31, 2020, No. 03/20/659/1681; effective January 1, 2021.]

Article 432. Procedure for Payment of Tax

Tax on nonagricultural land is paid:

by turnover-tax payers, no later than the twentieth day of the third month of each quarter, in an amount equal to one fourth of the annual tax;

[The second textual paragraph of part one of Article 432 as revised by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

by taxpayers that are not turnover-tax payers, no later than the tenth day of each month, in an amount equal to one twelfth of the annual tax; payment for January is due no later than January 20.

[The third textual paragraph of part one of Article 432 as revised by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

If an obligation arises after the prescribed tax-payment deadline during the tax period, the amount is paid no later than thirty days after the obligation arises.

Tax on agricultural land is paid as follows:

30 percent of the annual tax by September 1 of the reporting year;

the remaining amount by December 1 of the reporting year.

Chapter 62. Land Tax on Individuals

Article 433. Taxpayers

Taxpayers of the land tax on individuals (hereinafter in this Chapter referred to as "taxpayers") are individuals, and also dekhkan farms with and without the formation of a legal entity, that hold land plots on the basis of ownership, possession, use, or lease rights.

The rent payable for land plots provided under a land plot lease agreement concluded with the hokim of the district (city), and also with state bodies, institutions, and organizations possessing the right of permanent use in the manner established by legislation, and registered with the state registration bodies for rights to immovable property, is equated to the land tax. Individuals who have received land plots on lease are subject to the tax rates, tax incentives, and the procedure for calculating and paying the tax, established for land tax payers that are individuals.

Land tax on land plots in respect of which the right of ownership, possession, and use passed together with the inheritance of a residential building, non-residential buildings and structures, is collected from the heirs, taking into account the tax obligations of the testator.

Article 434. Object of Taxation

The objects of land tax on individuals, hereinafter in this Chapter referred to as the tax, are land plots:

1. granted under the prescribed procedure to individuals for agricultural purposes or for operating a dehkan farm;

[Item 1 of part one of Article 434 as revised by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

2. granted under the prescribed procedure for individual housing construction;

[Item 2 of part one of Article 434 as revised by Law of the Republic of Uzbekistan No. ZRU-775 of June 6, 2022; National Database of Legislation, June 7, 2022, No. 03/22/775/0477.]

3. granted for collective horticulture, viticulture, or vegetable gardening, and land occupied by collective or individual garages;

[Item 3 of part one of Article 434 as revised by Law of the Republic of Uzbekistan No. ZRU-659 of December 30, 2020; National Database of Legislation, December 31, 2020, No. 03/20/659/1681; effective January 1, 2021.]

4. granted as official land allotments;

5. the rights of ownership, possession, and use of which passed together with a residential house and structures by inheritance, gift, or acquisition;

6. acquired into ownership under the procedure established by legislation;

7. granted for use or lease to conduct business activity.

Land plots occupied by and adjoining apartment buildings that are granted under a right of permanent use to the owners of premises in those buildings for common, noncommercial use are not objects of taxation, except land plots specified in item 7 of part one of this Article and nonresidential immovable property located in apartment buildings.

[Part two of Article 434 as revised by Law of the Republic of Uzbekistan No. ZRU-891 of December 28, 2023; National Database of Legislation, December 29, 2023, No. 03/23/891/0989; effective January 1, 2024.]

Article 435. Tax Base

The tax base is the area of the land plots according to data from the body responsible for state registration of rights to immovable property.

For agricultural land granted to individuals or for operating a dehkan farm, the tax base is the normative value of the land plots determined in accordance with legislation, less agricultural land plots not subject to taxation under part two of Article 428 of this Code. The normative value is determined using the district's or city's average for irrigated or nonirrigated land, as applicable.

[Part two of Article 435 as revised by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

For land plots granted to individuals for collective horticulture, viticulture, or vegetable gardening, and land occupied by collective or individual garages, the tax base is determined using data from the management bodies of the organizations that granted the land plots.

[Part three of Article 435 as revised by Law of the Republic of Uzbekistan No. ZRU-659 of December 30, 2020; National Database of Legislation, December 31, 2020, No. 03/20/659/1681; effective January 1, 2021.]

For official land allotments, the tax base is determined using data from the enterprises, institutions, and organizations that granted the land plots to their employees.

For a purchaser that acquires state-owned immovable property on installment terms, the land-tax base for nonagricultural land occupied by the property is the area of the land plot in the share or percentage proportional to the portion of the redemption payments paid by the purchaser, if the purchaser was issued a state order for the property bearing the notation "without right of disposition."

Tax is collected provided that the installment-payment schedule for the redemption payments on the state-owned immovable property is observed. The State Assets Management Agency submits that schedule to the Tax Committee through information systems.

Article 436. Tax Reliefs

The following are exempt from tax:

1. persons awarded the title Hero of Uzbekistan or Hero of the Soviet Union or Hero of Labor, or awarded the Order of Glory in all three classes. This relief is granted on the basis of the certificate awarding the title Hero of Uzbekistan, the certificate of a Hero of the Soviet Union or Hero of Labor, the order certificate, or a certificate from the defense-affairs department;

2. persons with war-related disabilities and war veterans, and persons treated as equivalent to them, whose categories are established by legislation. This relief is granted on the basis of the relevant certificate of a person with a war-related disability or war veteran, a certificate from the defense-affairs department or other authorized body, or, for other persons with disabilities or participants, a certificate confirming entitlement to relief;

[Item 2 of part one of Article 436 as revised by Law of the Republic of Uzbekistan No. ZRU-770 of May 17, 2022; National Database of Legislation, May 18, 2022, No. 03/22/770/0424.]

3. persons with Group I or Group II disabilities. This relief is granted on the basis of a pension certificate or a certificate from a medical and social expert commission;

[Item 3 of part one of Article 436 as revised by Law of the Republic of Uzbekistan No. ZRU-770 of May 17, 2022; National Database of Legislation, May 18, 2022, No. 03/22/770/0424.]

4. single pensioners. A single pensioner is a pensioner living alone or in a separate house with minor children or a child with a disability. This relief is granted on the basis of a pension certificate, a certificate from the district or city department of the Extrabudgetary Pension Fund under the Ministry of Finance of the Republic of Uzbekistan, and a certificate from a citizens' self-government body;

[Item 4 of part one of Article 436 as revised by Law of the Republic of Uzbekistan No. ZRU-770 of May 17, 2022; National Database of Legislation, May 18, 2022, No. 03/22/770/0424.]

5. large families that have lost a breadwinner. For tax purposes, this means a large family in which one or both parents have died. This relief is granted on the basis of a certificate from the district or city department of the Extrabudgetary Pension Fund under the Ministry of Finance of the Republic of Uzbekistan;

[Item 5 of part one of Article 436 as revised by Law of the Republic of Uzbekistan No. ZRU-640 of October 5, 2020; National Database of Legislation, October 5, 2020, No. 03/20/640/1348; effective January 1, 2021.]

6. individuals, including those temporarily assigned or sent on a business trip, who receive reliefs for participating in remedying the consequences of the Chernobyl Nuclear Power Plant accident. This relief is granted on the basis of a certificate from a medical and labor expert commission, a special disability certificate, a certificate of participation in remedying the consequences of the Chernobyl Nuclear Power Plant accident, and other documents issued by authorized bodies that provide grounds for the relief.

[Deletion date for item 7 of part one of Article 436 under Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024: January 1, 2025; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067.]

For persons using renewable-energy sources with an aggregate capacity of up to 100 kW at residential immovable property, the amount of tax is reduced by an amount not exceeding one base calculation amount for three years beginning with the month in which the renewable-energy installations are installed or, where solar panels are installed together with an electricity-storage system whose capacity is at least 25 percent of the solar-panel capacity, for ten years from the month in which those panels are commissioned. This relief is granted only once for one land plot occupied by residential immovable property, on the basis of a certificate from the energy-supply organization confirming the individual's use of renewable-energy sources, and applies where the individual installs renewable-energy installations with an aggregate capacity exceeding 1 kW.

[Article 436 supplemented by part two by Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067; effective January 1, 2025.]

Except for the relief specified in item 5, the reliefs established by part one of this Article are granted to individuals that register, with the state-registration body, their rights to land plots granted to them for individual housing construction or operation of a dehkan farm. Except for the persons specified in part two of this Article, these reliefs may be granted for only one land plot selected by the taxpayer.

[Part three of Article 436 as revised by Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067; effective January 1, 2025.]

Persons entitled to the tax reliefs specified in this Article independently submit documents confirming entitlement to the tax authority at the location of the land plot.

Article 437. Tax Rates

Except for agricultural land granted to individuals or for operating a dehkan farm, the base tax rates are established by region of the republic as an absolute amount per square meter as follows:

The specific tax rates are determined as follows:

the Jokargy Kenes of the Republic of Karakalpakstan and the Kengashes of People's Deputies of the regions establish tax rates for nonagricultural land by district and city according to their economic development, using the base rates established by part one of this Article and reduction or increase coefficients between 0.5 and 2.0;

the Kengashes of People's Deputies of districts and cities introduce reduction or increase coefficients between 0.7 and 3.0 for the rates established by the second textual paragraph of part two of this Article or, in the city of Tashkent, for the base rates established by part one of this Article, by quarter, residential area, mahalla, and street within their territory.

[Part two of Article 437 as revised by Law of the Republic of Uzbekistan No. ZRU-659 of December 30, 2020; National Database of Legislation, December 31, 2020, No. 03/20/659/1681; effective January 1, 2021.]

Each year, by January 10, the Kengashes of People's Deputies of districts and cities submit the rates for the current tax period to the tax authority at the location of the nonagricultural land plots.

[Part three of Article 437 as revised by Law of the Republic of Uzbekistan No. ZRU-891 of December 28, 2023; National Database of Legislation, December 29, 2023, No. 03/23/891/0989; effective January 1, 2024.]

The Jokargy Kenes of the Republic of Karakalpakstan and the Kengashes of People's Deputies of the regions and the city of Tashkent may apply reduction or increase coefficients between 0.5 and 1.2 to the rate established for agricultural land.

Tax on land occupied by greenhouses is paid at the rates established for agricultural land. The normative value of those land plots is determined under the procedure established by legislation.

The tax rate for agricultural land granted to individuals or for operating a dehkan farm is 0.95 percent of the normative value of agricultural land. If the quality of agricultural land deteriorates or improves, meaning its soil-quality score decreases or increases, the procedure provided by parts twelve and thirteen of Article 429 of this Code applies to dehkan farms and individuals having agricultural land.

For land plots used for business activity; land plots on which residential houses, dacha structures, individual garages, or other buildings, structures, or premises are located and leased to a legal entity or individual entrepreneur; and land plots occupied by nonresidential immovable property owned by individuals, tax is collected from individuals at the rates prescribed for land tax on legal entities, and the reliefs specified in Article 436 of this Code do not apply.

[Part six of Article 437 repealed by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145. This provision also applies to relations arising from July 1, 2022.]

If an individual or family enterprise uses a land plot to produce goods or services while also residing in the residential house located on it, tax is paid at the rate prescribed for individuals.

If individuals neither grow agricultural crops nor carry out improvement work on the household portion of land plots granted for individual housing construction and improvement of the residential house, tax is paid at three times the prescribed amount.

If land plots are used without documents or in an area larger than that specified in the documents confirming the right to the land plot, the tax rate is three times the prescribed rates.

For household land plots granted to individuals for individual housing construction and improvement of a residential house, the rate prescribed for land plots occupied by individual housing construction applies.

[Article 437 supplemented by part ten by Law of the Republic of Uzbekistan No. ZRU-659 of December 30, 2020; National Database of Legislation, December 31, 2020, No. 03/20/659/1681; effective January 1, 2021.]

Article 439. Procedure for Calculating Tax

Tax is calculated by the tax authorities at the location of the land plot on the basis of data from the body responsible for state registration of rights to immovable property. For agricultural land granted to individuals or for operating a dehkan farm, tax is calculated on the basis of data from the body that determines the normative value of agricultural land under the procedure provided by part two of Article 435 of this Code.

[Part one of Article 439 as revised by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

Each year, no later than March 1, the tax authorities deliver to individuals, against signature, a payment notice stating the amount of tax and the payment deadlines or transmit it electronically to the taxpayer's personal account, if available, by SMS notification to a mobile-telephone number registered in the taxpayer's name, to the tax authorities' special mobile application, or by another method confirming the fact and date of receipt.

[Part two of Article 439 as revised by Law of the Republic of Uzbekistan No. ZRU-891 of December 28, 2023; National Database of Legislation, December 29, 2023, No. 03/23/891/0989; effective January 1, 2024.]

If the area of a land plot changes or entitlement to a relief arises or terminates during the year, the tax authorities must recalculate the tax within one month after the change and issue the taxpayer a new or supplemental payment notice stating the amount of tax and payment deadlines.

Tax on land plots occupied by nonresidential immovable property located in apartment buildings is calculated using the area of the nonresidential immovable property divided by the number of stories.

[Article 439 supplemented by part four by Law of the Republic of Uzbekistan No. ZRU-659 of December 30, 2020; National Database of Legislation, December 31, 2020, No. 03/20/659/1681; effective January 1, 2021.]

Article 441. Taxpayers

The following persons conducting primary water use or water consumption in the Republic of Uzbekistan are taxpayers of tax for the use of water resources, hereinafter in this Section referred to as taxpayers:

legal entities of the Republic of Uzbekistan;

legal entities that are nonresidents of the Republic of Uzbekistan and conduct activities in the Republic of Uzbekistan through permanent establishments;

individual entrepreneurs using water for business activity, and individuals having nonresidential immovable property intended for business activity and/or earning income;

dehkan farms, and individuals having agricultural land.

[The fourth and fifth textual paragraphs of part one of Article 441 as revised by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

Legal entities that supply water for the water supply of populated localities are taxpayers only for water used for their own needs.

Article 442. Taxable Object

The taxable object of the tax on the use of water resources (hereinafter in this Section referred to as "the tax") is water resources used from surface and underground sources.

The following are not taxable objects:

1. water resources used by non-commercial organizations in the course of non-commercial activities;

2. mineral underground waters used by healthcare institutions for medicinal purposes, with the exception of the volume of water used for sale in trade networks;

3. underground waters extracted in order to prevent their harmful impact on the environment, with the exception of the volume of water used for production and technical needs;

4. underground waters extracted from mine drainage concurrently with the extraction of minerals and pumped back into the subsoil to maintain reservoir pressure, with the exception of the volume of water used for production and technical needs;

5. water resources used to operate hydraulic turbines of hydroelectric power plants;

6. water resources discharged back by thermal power plants and combined heat and power plants;

7. water resources used for the leaching of saline agricultural lands, within the volume of the leaching rate approved by the authorized body in the field of water use and water consumption;

8. water resources used from collector-drainage networks.

Article 444. Procedure for Determining the Tax Base

The volume of water withdrawn from surface-water and groundwater sources is determined using readings from water-measuring instruments reflected in the accounting and primary records of water use.

If water is used without measuring instruments, its volume is determined using water-withdrawal limits for bodies of water, technological and sanitary water-consumption standards, irrigation standards for crops and green spaces, or other methods that ensure reliable data.

Taxpayers keep separate records of the volumes of water resources used from surface-water and groundwater sources. If water is used from a water-supply network receiving water from both types of source, the tax base is determined separately for each source type. Legal entities supplying water must submit to the tax authorities, by January 15 of the current tax period, information on the ratio of the volumes entering the water-supply network from surface-water and groundwater sources. The tax authorities must notify taxpayers of that information within three days.

The taxpayer determines the tax base for the production of hot water and steam using the volume of water resources it uses for production and technical needs.

If part of a building or separate premises are leased, the tax base is determined by the lessor that entered into the agreement with the legal entity supplying water.

A taxpayer that leases part of a building or separate premises and enters into an agreement with the legal entity supplying water independently determines the tax base.

If a taxpayer adjusts the volume of water withdrawn in the course of reconciliation with a legal entity supplying water, it reflects the difference in water volume in its calculations for the period in which the reconciliation occurred.

Taxpayers performing repair, construction, or other work on the premises of legal entities do not pay tax on water used in performing that work. The legal entities for which the work is performed pay tax on the volume used. If construction work is performed at a new construction site, the construction organization pays tax on the volume used in construction.

Each year, no later than December 10 of the current tax period, the authorized body for water use and water consumption submits to the tax authorities and to legal entities using water resources in agriculture, including fish farming, the expected volume of water resources they will use for determining the tax base. For dehkan farms and individuals having agricultural land or nonresidential immovable property intended for business activity and/or earning income, the body submits that information to the tax authority at the place of water use or water consumption no later than January 20 of the year following the reporting year.

[Part nine of Article 444 as revised by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

For dehkan farms and individuals having agricultural land or nonresidential immovable property intended for business activity and/or earning income, the tax authorities determine the tax base using data submitted by the authorized body for water use and water consumption.

[Part ten of Article 444 as revised by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

Fish farms raising fish in artificial bodies of water determine the tax base using the difference between the volumes withdrawn from natural and artificial bodies of water and discharged back into those bodies, excluding water discharged into collector-drainage networks.

If water-resource metering devices are unavailable and the actual volume of water used in agriculture, including fish farming, cannot be determined, the tax base is determined using water-consumption standards approved by the authorized body for water use and water consumption.

Taxpayers using water to cool special production units or turbines determine the tax base using the difference between the volumes withdrawn from natural bodies of water to cool the turbines and discharged back into a natural body of water. This rule applies if reliable water records or a special water-use permit is available.

[Article 444 supplemented by parts eleven through thirteen by Law of the Republic of Uzbekistan No. ZRU-659 of December 30, 2020; National Database of Legislation, December 31, 2020, No. 03/20/659/1681; effective January 1, 2021.]

If a taxpayer conducts activities for which the tax is not payable, the tax base is determined by separately recording taxable and nontaxable volumes of water resources. If separate records cannot be kept, the tax base is determined according to the proportion of net revenue from activities for which tax is payable in total net revenue.

For legal entities producing alcoholic products and nonalcoholic beverages, the tax base is the volume of water used in production and for other purposes. Water used to produce alcoholic products and nonalcoholic beverages means the volume of water contained in finished products in consumer packaging.

Taxpayers conducting several types of activity for which different objects of taxation and/or rates are established must keep separate records for those activities and pay tax at the applicable rates.

[Article 444 supplemented by part sixteen by Law of the Republic of Uzbekistan No. ZRU-659 of December 30, 2020; National Database of Legislation, December 31, 2020, No. 03/20/659/1681; effective January 1, 2021.]

[OKOZ classification: 1.07.00.00.00 Legislation on Finance and Credit; Banking Activity / 07.10.07.00 (no longer in force) Tax for the Use of Water Resources / 07.10.07.02 (no longer in force) Rates of Tax for the Use of Water Resources / 07.90.00.00 (no longer in force) National Taxes.]

Article 445. Tax Rates

Within the prescribed limit, the tax rates for water resources withdrawn from surface-water and groundwater sources are established as an absolute amount per cubic meter as follows:

The following coefficients apply to the rate provided by item 3 of part one of this Article:

if water-saving irrigation technology is introduced and the volume withdrawn for irrigation is determined using water-measuring instruments, a reduction coefficient of 0.5 applies;

if water-saving irrigation technology is introduced or the volume withdrawn for irrigation is determined using water-measuring instruments, a reduction coefficient of 0.7 applies;

if the volume withdrawn for fish farming is determined using water-measuring instruments, a reduction coefficient of 0.7 applies;

if water-saving irrigation technology is not introduced and the volume withdrawn for irrigation is not determined using water-measuring instruments, an increase coefficient of 1.1 applies, except as provided by part six of this Article.

The Kengashes of People's Deputies of districts and cities may:

establish a reduction coefficient as low as 0.7 or an increase coefficient as high as 1.5 for a tax rate, except the rates in items 2 and 3 of part one of this Article and rates for large taxpayers included in a list approved by a resolution of the President of the Republic of Uzbekistan;

apply an increase coefficient of up to 1.2 to the rates for water used on irrigated agricultural land of legal entities that requires laser leveling if the land has not been laser-leveled.

[Note: The third textual paragraph of part three of Article 445 enters into force on January 1, 2027, under Law of the Republic of Uzbekistan No. ZRU-1108 of December 25, 2025.]

For water withdrawn in excess of prescribed water-use limits, five times the prescribed rates apply to the excess.

If water resources are used without permitting documents, or a motor-vehicle washing enterprise uses water from a surface-water source, five times the prescribed rate applies.

If water is withdrawn from a groundwater source without water-measuring instruments, five times the prescribed rate applies. This rule does not apply to an individual's withdrawal of up to 5 cubic meters of groundwater per day for personal and household needs.

Article 447. Procedure for Calculating Tax and Filing Tax Returns

Tax is calculated using the tax base and the prescribed rates.

The tax authorities determine the amount of tax using the tax base and prescribed rates for:

dehkan farms;

individuals having agricultural land;

individuals having nonresidential immovable property intended for business activity and/or earning income;

agricultural enterprises, by October 1, in an amount based on 70 percent of the volume of water they used during the preceding tax period to irrigate agricultural land or breed and raise fish. If information on the volume used by an agricultural enterprise during the preceding tax period is unavailable, tax is determined using water-consumption standards approved by the authorized body for water use and water consumption.

Tax returns are filed with the tax authority at the place of water use or water consumption once a year:

by legal entities of the Republic of Uzbekistan, other than agricultural enterprises, no later than March 1 of the year following the reporting period;

by agricultural enterprises, no later than December 15 of the current tax period;

by legal entities that are nonresidents of the Republic of Uzbekistan and conduct activities in the Republic of Uzbekistan through permanent establishments, and by individual entrepreneurs, no later than January 20 of the year following the tax period.

Tax returns for the use of water resources in agriculture, including fish farming, are generated automatically by the tax authorities using data from the Suv Hisobi information system and authorized bodies responsible for water-resource accounting.

No later than March 1 of the year following the tax period, the tax authorities deliver to dehkan farms and to individuals having agricultural land or nonresidential immovable property intended for business activity and/or earning income, against signature, a payment notice for the tax or transmit it electronically to the taxpayer's personal account, if available, by SMS notification to a mobile-telephone number registered in the taxpayer's name, to the tax authorities' special mobile application, or by another method confirming the fact and date of receipt.

[Part four of Article 447 as revised by Law of the Republic of Uzbekistan No. ZRU-891 of December 28, 2023; National Database of Legislation, December 29, 2023, No. 03/23/891/0989; effective January 1, 2024.]

Article 448. Procedure for Payment of Tax

During the tax period, taxpayers make advance tax payments, except agricultural enterprises; legal entities that are nonresidents of the Republic of Uzbekistan and conduct activities in the Republic of Uzbekistan through permanent establishments; dehkan farms; and individuals having agricultural land or nonresidential immovable property intended for business activity and/or earning income.

[Part one of Article 448 as revised by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

To calculate advance payments, taxpayers submit to the tax authority at the place of water use or water consumption, no later than January 20 of the current tax period or, for a newly established taxpayer, no later than thirty days after state registration, a statement of the amount of tax for the current tax period calculated on the basis of the estimated tax base, meaning the volume of water use, and the prescribed rates. A taxpayer whose tax obligation arises during the tax period submits the statement no later than thirty days after the obligation arises.

[Part two of Article 448 as revised by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

Advance payments calculated under part two of this Article are paid:

by legal entities, other than turnover-tax payers, whose tax for the tax period exceeds two hundred times the base calculation amount, no later than the twentieth day of each month, in an amount equal to one twelfth of the annual tax;

by legal entities that are not turnover-tax payers and whose tax for the tax period is less than two hundred times the base calculation amount, and by turnover-tax payers and individual entrepreneurs, no later than the twentieth day of the third month of each quarter, in an amount equal to one fourth of the annual tax.

If the estimated tax base changes during the tax period, the taxpayer may submit an amended statement of the amount of tax. Advance payments for the remainder of the tax period are adjusted in equal installments by the amount of the change in tax.

Except for dehkan farms, taxpayers pay tax for the tax period, taking advance payments into account, at the place of water use or water consumption no later than the tax-return filing deadline.

If advance tax payments for the tax period are understated by more than 10 percent in comparison with the tax payable into the budget as stated in the tax return, the tax authority recalculates the advance payments using the actual tax and charges late-payment interest.

Agricultural enterprises pay tax for the tax period as follows:

70 percent of the annual tax determined by the tax authorities by October 1;

the remaining amount by December 15.

Dehkan farms and individuals having agricultural land or nonresidential immovable property intended for business activity and/or earning income pay tax once a year, no later than May 1 of the year following the tax period.

[Part seven of Article 448 replaced by parts seven and eight by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

SECTION XVIII. SUBSOIL-USE TAX

Chapter 64. Calculation and Payment of Subsoil-Use Tax

Article 449. Taxpayers

Taxpayers of the tax for the use of subsoil (hereinafter in this Section referred to as “taxpayers”) are legal entities and individuals that extract minerals from the subsoil and (or) recover minerals from technogenic mineral formations in the territory of the Republic of Uzbekistan (hereinafter in this Section referred to as the extraction (recovery) of minerals). Individuals engaged in artisanal mining of precious metals in compliance with the conditions prescribed by law are not taxpayers in respect of that activity.

Article 450. Object of Taxation

The objects of subsoil-use tax, hereinafter in this Section referred to as the tax, are:

the volume of commercial minerals extracted, unless otherwise provided by the third textual paragraph of this part;

the volume of actual sales of extracted ferrous, precious, nonferrous, and radioactive metals and rare and rare-earth elements.

[Part one of Article 450 as revised by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

The volume of extracted commercial minerals is determined less technological losses arising throughout the technological cycle of extraction, primary treatment, processing, and transportation, within the limits approved by the authorized body under the procedure established by legislation or, if no such limits exist, by the taxpayer.

[Part two of Article 450 as revised by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

Technological losses are losses within the technological cycle of extraction and primary treatment or processing of commercial minerals, including:

losses, other than above-limit losses, during the extraction of commercial minerals, including residues constituting unrecoverable reserves;

[The second textual paragraph of part three of Article 450 as revised by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

losses during primary field processing of hydrocarbons;

the volume of natural gas reinjected into a producing formation to maintain formation pressure and/or recover hydrocarbons within a closed technological cycle.

The object of taxation is determined separately for each type of commercial mineral.

The following are not objects of taxation:

commonly occurring commercial minerals extracted within land plots granted to taxpayers and used for the taxpayers' own business and household needs. The list of commonly occurring commercial minerals is established by legislation;

nonmetallic commercial minerals extracted as a result of riverbed-clearing and bank-reinforcement work under the procedure established by legislation, except the volume of commercial minerals sold.

Article 451. Tax Base

The taxpayer independently determines the tax base for each commercial mineral extracted.

The tax base is:

the value of the volume of commercial minerals extracted, unless otherwise provided by the third textual paragraph of this part;

the value of the volume of actual sales of extracted ferrous, precious, nonferrous, and radioactive metals and rare and rare-earth elements.

The tax base is determined on a cumulative basis from the beginning of the tax or reporting period and calculated using the weighted-average selling price for that period, unless otherwise provided by parts nine through eleven of this Article.

[Parts two and three of Article 451 as revised by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

The weighted-average selling price for a tax or reporting period is determined separately for each commercial mineral extracted by dividing sales in monetary terms, less value-added tax and excise tax, by sales in physical terms.

If an extracted commercial mineral is used partly for the taxpayer's own production or business needs, the tax base for the entire volume extracted is determined using the weighted-average selling price of that commercial mineral.

If no commercial mineral is sold during a tax or reporting period, the tax base is determined using the weighted-average selling price in the last tax or reporting period in which a sale occurred.

If no sale has occurred since extraction of the commercial mineral began, the tax base is determined using the production cost of extraction for the tax or reporting period, increased by 20 percent. In the first reporting period in which a sale occurs, the taxpayer must subsequently adjust the tax assessed using the weighted-average price for that reporting period.

If an extracted commercial mineral is used entirely for the taxpayer's own production or business needs, the tax base is determined using the production cost of the commercial mineral extracted, increased by 20 percent.

If the taxpayer processes extracted natural gas, oil, and/or gas condensate itself or on a toll-processing basis, the tax base is determined using the selling price of the products obtained from those commercial minerals less the taxpayer's expenses for their further processing and transportation.

[Part nine of Article 451 as revised by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

Unless otherwise provided by Article 451¹ of this Code, for the extraction of precious, nonferrous, and radioactive metals and rare and rare-earth elements, the tax base is determined using the weighted-average selling price of the commercial mineral less expenses for its further processing, including smelting and refining, and/or transportation.

[Part ten of Article 451 as revised by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

In determining the tax base for the commercial minerals provided for by parts nine and ten of this Article and by Article 451¹ of this Code, the taxpayer and tax authorities jointly determine the amount of expenses connected with transportation and/or processing of the extracted commercial minerals, including toll processing. The amount may be adjusted at the end of the calendar year under the same procedure.

[Article 451 supplemented by part eleven by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

Special rules for determining the tax base for particular types of commercial minerals are established by Article 451¹ of this Code.

Article 451.1. Special Rules for Determining the Tax Base for the Mining or Recovery of Certain Metals

The tax base for gold, silver, platinum, palladium, copper, zinc, lead, and molybdenum (hereinafter in this Article, metals) is determined separately for each metal contained in ore, concentrate, and/or the final processed product (finished product).

The tax base for the mining or recovery of metals is:

1. upon the sale of ore or concentrate, the actual sale value of the mined or recovered metal, calculated using the greater of the arithmetic mean exchange price and the weighted average selling price for the tax or reporting period, applied to the volume of metal contained in the ore or concentrate, less the expenses of its further processing (smelting and refining) and/or transportation, unless otherwise provided in paragraph 2 of this part;

2. upon the sale of gold or copper, the actual sale value of the mined or recovered metal, calculated using the greater of the arithmetic mean exchange price and the weighted average selling price for the tax or reporting period, applied to the volume of metal contained in the ore, concentrate, and/or final processed product (finished product), without deducting the expenses of its further processing (smelting and refining) and transportation. The taxpayer may, however, determine the tax base for gold and copper after deducting those expenses;

3. upon the sale of silver, platinum, palladium, zinc, lead, or molybdenum recovered independently or on a tolling basis, the actual sale value of the mined or recovered metal, calculated using the greater of the arithmetic mean exchange price and the weighted average selling price for the tax or reporting period, less the expenses incurred by the taxpayer for its further processing (smelting and refining) and/or transportation.

[Part two of Article 451.1 as amended by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

The taxpayer may determine the tax base without deducting expenses for further processing (smelting and refining) and transportation if the recovered silver, platinum, palladium, zinc, lead, or molybdenum is not the principal metal in the ore or is recovered at production facilities at which gold and/or copper is recovered, beneficiated, or processed.

[Part three of Article 451.1 as amended by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

Where one or more of silver, platinum, palladium, zinc, lead, or molybdenum are recovered and are principal metals in the ore, the tax base for other metals, including gold and copper, is determined after deducting the expenses of their further processing (smelting and refining) and transportation.

[Part four of Article 451.1 as amended by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

If, in addition to the metals, the taxpayer recovers other precious, nonferrous, and radioactive metals, as well as rare and rare-earth elements not specified in part one of this Article, the tax base for those other metals or elements is determined using the weighted average selling price, less the expenses of their further processing (smelting and refining) and transportation.

[Part five of Article 451.1 as amended by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

If, in addition to the principal metals in the ore, the taxpayer recovers other metals, including from man-made waste such as dust, slag, cake, or sludge, the tax base for those metals or elements may be determined using the weighted average selling price or arithmetic mean exchange price, less the expenses of their further processing (smelting and refining) and transportation.

[Part six of Article 451.1 as amended by Law of the Republic of Uzbekistan No. ZRU-812 of December 30, 2022; National Database of Legislation, December 31, 2022, No. 03/22/812/1145; effective January 1, 2023.]

For a tax or reporting period, the tax authorities determine the arithmetic mean exchange price for gold, silver, palladium, and platinum on the basis of the morning fixing of the London Bullion Market Association and, for other metals, on the basis of London Metal Exchange data.

The arithmetic mean exchange price for a tax or reporting period is determined by dividing the sum of the metal prices, multiplied by the exchange rate published by the Central Bank of the Republic of Uzbekistan for the currency in which the prices were determined, by the number of days on which those prices were determined.

The taxpayer independently determines the weighted average selling price for a tax or reporting period in accordance with the procedure established by part four of Article 451 of this Code.

No later than the tenth day of each month following the tax or reporting period, the tax authorities publish on the official website of the State Tax Committee of the Republic of Uzbekistan the arithmetic mean exchange price for each type of metal calculated in accordance with parts seven and eight of this Article.

Article 452. Tax Rates

Tax rates are established as follows:

* Tax at the prescribed rate is paid by cement-manufacturing plants and by taxpayers that sell them cement raw material consisting of limestone.

** For purposes of calculating corporate profit tax and value-added tax, the selling price of a sand-gravel mixture at the quarry may not be less than 20,000 soums per cubic meter.

The Kengashes of People's Deputies of districts and cities may establish an increase coefficient of up to 1.3 for fixed rates on nonmetallic construction materials, other than limestone for cement production.

[Article 452 supplemented by part two by Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067; effective January 1, 2025.]

For enterprises with a controlling state interest that extract hydrocarbons, precious, nonferrous, and/or radioactive metals, and rare and rare-earth elements, and for extraction under a production-sharing agreement, the President of the Republic of Uzbekistan may establish increased subsoil-use tax rates unless otherwise provided by agreements and contracts that entered into force before September 1, 2021, or by part four of this Article.

[Part three of Article 452 as revised by Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067; effective January 1, 2025.]

The rates established by part one of this Article, except the rates for gold, silver, palladium, copper, and uranium, also apply to enterprises with a controlling state interest that extract hydrocarbons, precious, nonferrous, and radioactive metals, and rare and rare-earth elements from a subsoil plot at which extraction began after January 1, 2022.

[Part three of Article 452 as revised by Law of the Republic of Uzbekistan No. ZRU-891 of December 28, 2023; National Database of Legislation, December 29, 2023, No. 03/23/891/0989; effective January 1, 2024.]

Article 453. Tax Period. Reporting Period

The tax period is:

for legal entities – a quarter;

for individuals – a calendar year.

The reporting period is:

for legal entities – a month;

for individuals – a calendar year.

Article 454. Procedure for Calculation of Tax, Filing of Tax Reporting, and Payment of Tax

Taxpayers independently calculate the tax on the basis of the tax base determined in accordance with Articles 451 and 451.1 of this Code and the applicable tax rate.

For certain types of minerals, the amount of tax is determined on the basis of the tax base and the established tax rate, but not less than the established tax amount.

Tax reporting is submitted by the taxpayer on the expiration of each reporting period and tax period to the tax authorities at the place of tax registration, and for non-metallic construction materials – at the place of extraction, within the following time limits:

by legal entities – on a cumulative basis from the beginning of the tax period, monthly, no later than the 20th day of the month following the reporting period;

by individuals – once a year, no later than February 1 of the year following the tax period.

Tax is payable:

by legal entities – monthly, no later than the 20th day of the following month;

by individuals – no later than the deadline for submission of tax reporting.

Article 455. Types of Fees

Fees include:

1. the fee for the entry of motor vehicles of foreign states into, and their transit through, the Republic of Uzbekistan;

1¹) the fee for the right of trucks and trailers having a load capacity exceeding 10 metric tons to travel on public roads;

[Article 455 supplemented by item 1¹ by Law of the Republic of Uzbekistan No. ZRU-891 of December 28, 2023; National Database of Legislation, December 29, 2023, No. 03/23/891/0989; effective April 1, 2024.]

2. fees for the right to sell alcoholic products, including:

the fee for the right to retail alcoholic products;

the fee for the sale of alcoholic products by food-service enterprises;

[Article 455 as revised by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021; National Database of Legislation, December 30, 2021, No. 03/21/741/1219.]

3. the fee for the right to retail beer and beer beverages;

4. the fee for the right to retail tobacco products.

[Article 455¹ repealed by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021; National Database of Legislation, December 30, 2021, No. 03/21/741/1219.]

Article 456. Taxpayers

The taxpayers of the fee for the entry of motor vehicles of foreign states into, and their transit through, the Republic of Uzbekistan are the owners or users of those vehicles.

The taxpayers of the fee for the right of trucks and trailers having a load capacity exceeding 10 metric tons to travel on public roads are the owners of those vehicles.

[Article 456 supplemented by part two by Law of the Republic of Uzbekistan No. ZRU-891 of December 28, 2023; National Database of Legislation, December 29, 2023, No. 03/23/891/0989; effective April 1, 2024.]

The taxpayers of the fee for the right to sell alcoholic products are legal entities having confirmation that the authorized state body was notified of the commencement of sales by enterprises retailing alcoholic products and by food-service enterprises.

[Article 456 as revised by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021; National Database of Legislation, December 30, 2021, No. 03/21/741/1219.]

The taxpayers of the fee for the right to retail beer and beer beverages are legal entities having confirmation that the authorized state body was notified of the commencement of that retail activity.

The taxpayers of the fee for the right to retail tobacco products are legal entities and individual entrepreneurs having confirmation that the authorized state body was notified of the commencement of that retail activity.

Article 457. Object of Taxation

The objects of taxation for the fees are:

the entry of motor vehicles of foreign states into, and their transit through, the Republic of Uzbekistan;

trucks and trailers having a load capacity exceeding 10 metric tons.

The object of taxation provided for by the third textual paragraph of part one of this Article does not include:

1. heavy-duty dump trucks operating within quarries;

2. mobile cranes;

3. motor vehicles at the disposal of the Ministry of Emergency Situations, Ministry of Defense, National Guard of the Republic of Uzbekistan, or law-enforcement bodies.

[Text of Article 457 as revised by Law of the Republic of Uzbekistan No. ZRU-891 of December 28, 2023; National Database of Legislation, December 29, 2023, No. 03/23/891/0989; effective April 1, 2024.]

Article 458. Tax Base

The tax bases for the fees are:

motor vehicles of foreign states upon their entry into, and transit through, the Republic of Uzbekistan;

trucks and trailers having a load capacity exceeding 10 metric tons.

[Text of Article 458 as revised by Law of the Republic of Uzbekistan No. ZRU-891 of December 28, 2023; National Database of Legislation, December 29, 2023, No. 03/23/891/0989; effective April 1, 2024.]

[Article 459 repealed by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021; National Database of Legislation, December 30, 2021, No. 03/21/741/1219.]

Article 460. Procedure for Payment of Fees

The fee for the entry of a motor vehicle of a foreign state into, and its transit through, the Republic of Uzbekistan is collected when the vehicle enters the Republic of Uzbekistan or, under the procedure established by the Cabinet of Ministers of the Republic of Uzbekistan, within the customs territory of the Republic of Uzbekistan.

[Part one of Article 460 as revised by Law of the Republic of Uzbekistan No. ZRU-891 of December 28, 2023; National Database of Legislation, December 29, 2023, No. 03/23/891/0989; effective January 1, 2024.]

The fee for the right of trucks and trailers having a load capacity exceeding 10 metric tons to travel on public roads is collected by the Ministry of Transport of the Republic of Karakalpakstan and the territorial transport departments under the procedure established by legislation. Payment of the fee entitles the truck or trailer to travel on public roads for one year.

[Article 460 supplemented by part two by Law of the Republic of Uzbekistan No. ZRU-891 of December 28, 2023; National Database of Legislation, December 29, 2023, No. 03/23/891/0989; effective January 1, 2024.]

The fees provided for by items 2, 3, and 4 of Article 455 of this Code are payable from the time notice is sent of the commencement of sales of alcoholic products, retail sales of beer and beer beverages, or retail sales of tobacco products, respectively. If notice is sent on or before the twentieth day of the current month, the full fee is calculated for that month; if it is sent after the twentieth day, the fee is calculated from the first day of the following month.

If sales of alcoholic products, including by food-service enterprises, retail sales of beer and beer beverages, or retail sales of tobacco products are conducted through several fixed retail and/or food-service outlets, the applicable fee is calculated and collected within the prescribed rates in proportion to the number of fixed retail and/or food-service outlets and the area of each outlet.

If the retail sale of alcoholic products, beer and beer beverages, or tobacco products is suspended or terminated, calculation of the fee is suspended from the first day of the following month.

The fee for the right to sell alcoholic products or retail beer and beer beverages or tobacco products is prepaid monthly by the tenth day of the current month.

Fees collected for the right to sell alcoholic products or retail beer and beer beverages or tobacco products are distributed under the procedure established by legislation.

[Article 460¹ repealed by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021; National Database of Legislation, December 30, 2021, No. 03/21/741/1219.]

SECTION XX. TURNOVER TAX

Chapter 66. Calculation and Payment of Turnover Tax

Article 461. Taxpayers

Taxpayers of turnover tax (Uzbekistan) (hereinafter in this Section referred to as "taxpayers") are:

1. legal entities of the Republic of Uzbekistan (hereinafter in this Section referred to as "legal entities") whose aggregate income for the tax period does not exceed one billion soums;

2. individual entrepreneurs and self-employed persons whose income from the sale of goods (services) for the tax period does not exceed one billion soums.

Turnover tax (Uzbekistan) does not apply to:

1. legal entities and individual entrepreneurs, and also self-employed persons, carrying out the importation (import) of goods through the customs border of the Republic of Uzbekistan;

2. legal entities producing excisable goods (services) and/or persons carrying out the extraction of mineral resources;

3. legal entities that are agricultural producers, where those legal entities have irrigated agricultural land with an area of twenty-five hectares or more; (Paragraph 3 of the second part of Article 461 as amended by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021 – National Legislation Database, December 30, 2021, No. 03/21/741/1219.)

4. legal entities carrying out the sale of gasoline, diesel fuel, and gas;

5. legal entities carrying out the organization of lotteries;

6. a trustee, being a participant in a simple partnership on whom the conduct of the affairs of the simple partnership has been conferred, with respect to activities carried out within the framework of a simple partnership agreement – except for activities carried out within the framework of a simple partnership agreement concluded with banks and microfinance organizations for Islamic finance transactions;

7. legal entities that are owners of vacant buildings, non-residential-purpose structures, and objects of construction in progress, and also those not using production areas in respect of which a finding of their ineffective use has been issued in the manner established by legislation;

8. legal entities carrying out the construction of objects (except for current and capital repairs) at the expense of centralized sources of financing;

9. stationary retail outlets for the retail sale of alcoholic products, including beer;

10. markets and shopping centers; (The second part of Article 461 was supplemented with paragraphs 9 and 10 by Law of the Republic of Uzbekistan No. ZRU-659 of December 30, 2020 – National Legislation Database, December 31, 2020, No. 03/20/659/1681 – Takes effect from January 1, 2021.)

11. organizations of tax consultants;

12. audit organizations;

13. non-commercial organizations, including budget-funded ones; (The second part of Article 461 was supplemented with paragraphs 11–13 by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021 – National Legislation Database, December 30, 2021, No. 03/21/741/1219.)

14. enterprises engaged in the trade in pharmaceutical products and medical products, and/or organizations providing medical services;

15. business entities carrying out activities in the production and/or sale of jewelry.

Article 462. Special Features of the Application of Turnover Tax

Taxpayers specified in paragraph 1 of part one of Article 461 of this Code are entitled to choose a special tax regime providing for the payment of turnover tax (referred to in this Section as "the tax") in lieu of paying value-added tax and profit tax.

Taxpayers specified in paragraph 1 of part one of Article 461 of this Code are entitled to switch to payment of the tax beginning with the next tax period. To effect the switch, legal entities must notify the tax authority at the place of tax registration of the switch to payment of the tax, in the form established by the Tax Committee of the Republic of Uzbekistan, no later than ten days before the start of the next tax period in which they switch to payment of turnover tax.

Individual entrepreneurs and self-employed persons specified in paragraph 2 of part one of Article 461 of this Code are entitled to choose payment of value-added tax and profit tax in lieu of paying turnover tax.

Newly created legal entities are entitled to choose payment of turnover tax from the date of state registration by indicating the selected taxation procedure upon state registration of the business entity.

Legal entities are entitled to voluntarily discontinue the application of turnover tax beginning from the first day of the month following the month in which an application for registration as a value-added tax taxpayer was submitted in accordance with Article 237 of this Code, with simultaneous discontinuation of payment of turnover tax.

Taxpayers that have voluntarily switched to payment of value-added tax and profit tax are entitled to switch again to payment of turnover tax no earlier than twelve months later, provided that aggregate income for the current tax period did not exceed one billion soums.

Taxpayers, including newly created legal entities and newly registered individual entrepreneurs and self-employed persons, whose aggregate income during the tax period exceeds one billion soums, switch to payment of value-added tax and profit tax from the date on which the stated aggregate income level is reached.

If the amount of aggregate income of a newly created legal entity, or the amount of income from the sale of goods (services) of a newly registered individual entrepreneur or self-employed person, exceeds an amount equal to one billion soums divided by 365 and multiplied by the number of days from the registration date to the end of the calendar year, those persons switch to payment of value-added tax and profit tax from the beginning of the year following the year of registration.

Taxpayers providing intermediary services under commission agreements, agency agreements, and other agreements for the provision of intermediary services, including individual entrepreneurs providing intermediary services to telecommunications operators and/or providers, determine income from the sale of goods (services) on the basis of total sales turnover (transaction amount).

Legal entities that own unoccupied buildings, non-residential structures, and objects of construction in progress, as well as those that do not use production premises, switch to payment of value-added tax and profit tax from the date of issuance of a conclusion on the ineffective use thereof. (Part twelve of Article 462 as amended by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021 – National Legislation Database, December 30, 2021, No. 03/21/741/1219)

Legal entities that own objects of uncompleted construction and unused production premises switch to payment of value-added tax and profit tax from the date of issuance of a conclusion by the authorized body empowered to issue a conclusion on non-implementation of an investment project. (Part thirteen of Article 462 as amended by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021 – National Legislation Database, December 30, 2021, No. 03/21/741/1219)

Legal entities that carry out construction of facilities (excluding routine and capital repairs) using centralized financing sources switch to payment of value-added tax and profit tax from the date of conclusion of the contract for such construction. (Part fourteen of Article 462 as amended by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021 – National Legislation Database, December 30, 2021, No. 03/21/741/1219)

Legal entities, individual entrepreneurs, and self-employed persons that import goods through the customs border of the Republic of Uzbekistan switch to payment of value-added tax and profit tax from whichever is earlier of the date of conclusion of the import contract and the date of importation of the goods.

Persons specified in paragraphs 2, 4, 5, 9, and 11 of part two of Article 461 of this Code switch to payment of value-added tax and profit tax from the date of receipt of the relevant permits (licenses) or from the date of notification by the authorized body of the commencement of their activities.

Legal entities that are agricultural producers and that hold irrigated agricultural land of twenty-five hectares or more switch to payment of value-added tax and profit tax from the date of execution of documents confirming the right to the stated land plot or a change in its area.

The partner of a simple partnership who is entrusted with conducting the affairs of the simple partnership in respect of activities carried out under the simple partnership agreement switches to payment of value-added tax and profit tax from the date of conclusion of the simple partnership agreement.

Markets and commercial complexes, as well as non-profit organizations, switch to payment of value-added tax and profit tax from the date of state registration; budgetary organizations switch from the date of their establishment.

Audit organizations switch to payment of value-added tax and profit tax from the date of conclusion of an agreement for the provision of audit services. (Article 462 supplemented with parts fifteen through twenty by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021 – National Legislation Database, December 30, 2021, No. 03/21/741/1219)

Payment of the tax does not exempt the taxpayer from:

• fulfilling the obligations of a tax agent imposed on the taxpayer by this Code;
• the obligation to issue invoices and maintain purchase ledgers and sales ledgers, unless otherwise provided by this Code.

Self-employed persons, from the moment that their aggregate income from the sale of goods (services) in the tax period exceeds one billion soums or from the time of voluntary switching to payment of value-added tax and profit tax, pay taxes (with the exception of social tax) in the manner established for individual entrepreneurs in accordance with this Code.

Article 463. Taxable Object

The taxable object is aggregate income, determined in accordance with Chapter 43 of this Code, excluding income not taken into account in taxation pursuant to Article 304 of this Code, with account taken of the special features provided for by this Article.

For tax purposes, income from the sale of goods (services) means, for:

• construction, construction and installation, repair and construction, commissioning, design and survey, and scientific research organizations: income from the sale of construction, construction and installation, repair and construction, commissioning, design and survey, and scientific research services, respectively, performed by their own forces. Where, under the contract, the customer bears the obligation to supply materials for the above services, and the customer retains ownership of those materials, income from services performed by their own forces is determined as income from services performed and confirmed, without including the cost of the customer's materials;
• legal entities providing property under a finance lease (leasing): the amount of interest income on the finance lease (leasing);
• legal entities and individual entrepreneurs providing intermediary services under commission agreements, agency agreements, and other intermediary-service agreements: the amount of remuneration for the services rendered;
• legal entities making gratuitous transfers of goods (services): the cost of the goods (services) or their acquisition price (including costs connected with the acquisition of the goods), unless otherwise provided by this Article. This rule does not apply to the gratuitous transfer of goods (services) to environmental, health-improving, and charitable foundations, and to institutions of culture, healthcare, labor, social protection of the population, physical culture and sports, and educational institutions.

The taxable object also includes:

1. the transfer of goods (services):

   a) to a participant upon withdrawal (departure) from the list of participants, or upon a reduction of the participant's interest in the legal entity or the buyout by the legal entity of a participant's interest (part of an interest) in that legal entity;

   b) to a shareholder upon the buyout by the legal entity-issuer of shares issued by that issuer from the shareholder;

   c) to a shareholder or participant upon the liquidation of the legal entity;

2. the transfer of goods (services) as payment for the labor of individuals or as payment of dividends;

3. the transfer of goods and other property on a toll-processing basis, where the goods and/or property have not been returned in the form of a processed product within the time limit established by the contract;

4. the transfer of reusable packaging subject to return to the seller, where the packaging has not been returned within the time limit established by the contract for the supply of products in such packaging.

The sale or gratuitous transfer of vouchers granting the right to receive goods (services) is treated as the sale of those goods (services).

Income from long-term contracts is included in aggregate income in the manner prescribed by Article 303 of this Code.

Upon revaluation of foreign-currency balance-sheet accounts, the taxable object is the balance between positive and negative exchange-rate differences. Where the amount of negative exchange-rate differences exceeds the positive amount, the excess does not reduce the tax base in calculating the tax.

Aggregate income does not include income received by taxpayers before switching to payment of turnover tax, during the period of payment of personal income tax or of value-added tax and profit tax.

Article 464. Tax Base

The tax base is total income calculated under Article 463 of this Code, less:

1. income from government bonds and other government securities of the Republic of Uzbekistan, and income from international bonds of legal entities resident in the Republic of Uzbekistan;

2. dividends subject to taxation by a tax agent;

3. the value of returnable reusable packaging if that value was previously included in income from the sale of goods or services;

4. income received upon retirement of depreciable assets from the amount of their upward revaluation exceeding previous downward revaluations;

5. prior-year income identified in the reporting year. That income is taxed by recalculating the taxes in accordance with the legislation of the period in which it arose.

[Deletion date for item 6 of part one of Article 464 under Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024: January 1, 2025; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067.]

In addition to the deductions provided by part one of this Article, the tax base is reduced for:

1. brokerage organizations, by the commission fee remitted to the exchange from the transaction amount;

2. legal entities providing intermediary services under commission or agency agreements, by customs payments paid upon importation of the goods in the proportion attributable to the goods sold;

3. tourism-business entities, by funds directed toward implementing software products and information systems for online booking and sale of tourism services;

4. business entities, by expenses for purchasing tickets for their employees and the employees' close relatives to attend cultural, mass, concert, and entertainment events, in an amount not exceeding 0.5 percent of income from the sale of goods or services.

[Part two of Article 464 supplemented by item 4 by Law of the Republic of Uzbekistan No. ZRU-785 of July 26, 2022; National Database of Legislation, July 27, 2022, No. 03/22/785/0679.]

Article 465. Special Features of the Determination of the Tax Base of Individual Entrepreneurs and Self-Employed Persons

The tax base of individual entrepreneurs and self-employed persons is their aggregate income from the sale of goods (services), calculated in accordance with Article 463 of this Code.

An individual, when carrying out transactions connected with their entrepreneurial activity, must indicate that they are acting as an individual entrepreneur or self-employed person, unless this clearly follows from the very circumstances of the transactions.

For the purposes of taxation, there are not taken into account: income of an individual entrepreneur or self-employed person that is subject to personal income tax; and income from the sale of personal (family) property not connected with the conduct of entrepreneurial activity.

Payment organizations are recognized as tax agents in respect of income of individual entrepreneurs and self-employed persons from the sale of goods (services) through the digital platforms of payment organizations, up to one billion soums.

In respect of income of self-employed persons received from legal entities through the sale of goods (services) up to one billion soums in the tax period, those legal entities are recognized as tax agents. The tax payable by the self-employed person is withheld by the legal entities at source on the basis of notification by the tax authorities.

In cases other than those provided for in parts four and five of this Article, the payment of taxes and submission of reports in respect of income of individual entrepreneurs and self-employed persons from the sale of goods (services) are carried out in the manner established by this Code.

Personal income tax at the rate established in part one of Article 381 of this Code applies to income of individual entrepreneurs and self-employed persons from the lease of property.

Article 467. Tax Rates

Tax rates are established as follows:

[Deletion date for part two of Article 467 under Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024: January 1, 2026; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067.]

[Deletion date for part three of Article 467 under Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024: January 1, 2026; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067.]

[Deletion date for part four of Article 467 under Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024: January 1, 2026; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067.]

Parts two, three, and four of this Article ceased to have effect on January 1, 2026.

[Article 467 supplemented by part five by Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067; effective January 1, 2025.]

Article 468. Maintenance of Separate Records

Taxpayers engaged in several types of activities for which different taxable objects and/or tax rates are established must maintain separate records for those types of activities and pay tax at the tax rates established for the corresponding categories of taxpayers.

The provisions of part one of this Article also apply to taxpayers in the field of retail trade that have several retail outlets that are not independent legal entities and are located in different populated localities.

Income specified in paragraphs 5, 6, 10, 11, 12, 13, 14, 17, 18, 21, 22, 23, 25, and 27 of part three of Article 297 of this Code, as well as income in the form of interest, is taxed at the tax rates established for the type of activity of the taxpayer in which the share of income in total aggregate income is predominant at the end of the reporting (tax) period.

Where the types of activities specified in paragraphs 2 through 5 of Article 467 of this Code are not carried out in the reporting (tax) period, the income specified in part three of this Article is taxed at the tax rate established in paragraph 1 of Article 467 of this Code.

Article 469. Tax Period. Reporting Period

The tax period must be the calendar year. The reporting period is one month.

Article 470. Procedure for Calculating Tax, Filing Tax Returns, and Paying Tax

The taxpayer independently determines the amount of tax at the end of the reporting or tax period.

[Part one of Article 470 as revised by Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067; effective January 1, 2026.]

At the end of a reporting period, tax is calculated cumulatively from the beginning of the tax period as the percentage of the tax base corresponding to the applicable rate, unless otherwise provided by this Article.

The taxpayer or tax agent files the tax return with the tax authority at its place of tax registration within the following periods:

1. for a reporting period, no later than the fifteenth day of the month following the reporting period;

2. for a tax period, no later than February 15 following the expired tax period.

Tax agents file tax returns for income of individual entrepreneurs and self-employed persons from the sale of goods or services provided for by parts four and five of Article 465 of this Code, broken down by each individual entrepreneur or self-employed person. The tax authority maintains records of tax assessed and paid in the taxpayer's personal account at the place where the individual entrepreneur or self-employed person is registered as a taxpayer.

Tax for a reporting or tax period is paid no later than the deadline for the taxpayer or tax agent to file the tax return for that period.

[Date on which Article 470¹ ceased to have effect under Law of the Republic of Uzbekistan No. ZRU-1014 of December 24, 2024: January 1, 2026; National Database of Legislation, December 26, 2024, No. 03/24/1014/1067.]

[OKOZ classification: 1.07.00.00.00 Legislation on Finance and Credit; Banking Activity / 07.10.08.00 (no longer in force) Taxation of Particular Categories of Persons / 07.10.08.01 (no longer in force) Taxation of Small Enterprises and Microfirms / 07.90.00.00 (no longer in force) National Taxes.]

SECTION XXI. SPECIAL TAXATION RULES FOR CERTAIN CATEGORIES OF TAXPAYERS AND IN PARTICULAR TERRITORIES OF THE REPUBLIC OF UZBEKISTAN

[Title of Section XXI as revised by Law of the Republic of Uzbekistan No. ZRU-714 of September 14, 2021; National Database of Legislation, September 15, 2021, No. 03/21/714/0874. This provision also applies to relations arising from March 1, 2021.]

[OKOZ classification: 1.07.00.00.00 Legislation on Finance and Credit; Banking Activity / 07.10.08.00 (no longer in force) Taxation of Particular Categories of Persons / 07.10.08.05 (no longer in force) Taxation of Legal Entities with Direct Private Foreign Investment / 07.90.00.00 (no longer in force) National Taxes.]

Chapter 67. Special Taxation Rules for Legal Entities with Direct Private Foreign Investment

Chapter 71.2. Special Rules for Taxation of Islamic Finance Transactions

Article 471. Conditions of Taxation of Legal Entities with Participation of Direct Private Foreign Investment

Special features in the application of reliefs for certain taxes are provided for legal entities established with the participation of direct private foreign investment that specialize in the production of goods (provision of services) in sectors of the economy according to a list approved by legislation.

Direct private foreign investment means investment carried out without a guarantee of the Republic of Uzbekistan by individuals who are citizens of a foreign state, by stateless persons permanently residing outside the Republic of Uzbekistan, and by foreign non-state legal entities.

Legal entities specified in part one of this Article are granted tax reliefs in the form of exemption from payment of land tax and property tax, depending on the volume of direct private foreign investment contributed, for a period determined by a decision of the President of the Republic of Uzbekistan.

An enterprise with the participation of direct private foreign investment is entitled to enjoy other tax reliefs provided for by tax legislation.

Article 473. Conditions of Taxation of Participants of Special Economic Zones

Participants of special economic zones are granted tax reliefs in the form of exemption from payment of property tax and land tax, depending on the volume of investments contributed, for a period determined by a decision of the President of the Republic of Uzbekistan.

Participants of special economic zones are exempt from payment of profit tax depending on the volume of investments contributed by them:

• in an amount from USD 3 million to USD 5 million: for 3 years;
• in an amount from USD 5 million to USD 15 million: for 5 years;
• in an amount of USD 15 million and above: for 10 years.

(Part two of Article 473 added by Law of the Republic of Uzbekistan No. ZRU-783 of July 12, 2022 – National Legislation Database, July 13, 2022, No. 03/22/783/0620)

For taxpayers that have obtained the status of a participant of a special economic zone beginning from April 1, 2026, the profit-tax relief is applied in the form of granting the right to accelerated depreciation of depreciable fixed assets for a period determined depending on the volume of investments contributed, as specified in part two of this Article.

The tax reliefs specified in parts one, two, and three of this Article apply exclusively to types of activities of the participant of the special economic zone provided for in the Investment Agreement for the territory of the special economic zone concluded between the investor (investors) and the Directorate of the special economic zone.

Participants of special economic zones enjoy reliefs in respect of value-added tax and other taxes in accordance with this Code.

Article 474. Procedure for the Application of Tax Reliefs by Participants of Special Economic Zones

The period of validity of tax reliefs provided for in part one of Article 473 of this Code is calculated from the date of receipt of the certificate of a participant of a special economic zone.

The period of validity of profit-tax reliefs provided for in parts two and three of Article 473 of this Code is calculated from the date of commissioning of the production facility (service provision facility) on the territory of the special economic zone.

Upon deprivation of the status of a participant of a special economic zone, a business entity may not enjoy the tax reliefs and other preferences granted to participants of a special economic zone, beginning from the first day of the month in which it was deprived of the status of a participant of a special economic zone.

If a participant of a special economic zone has increased the volume of investments to a level that entitles the participant to a longer period of validity of tax reliefs, the participant is entitled to extend the period of validity of tax reliefs in accordance with the actual volume of investments. Where the increase in the volume of investments occurs after the expiry of the previous period of validity of reliefs, tax reliefs apply from the first day of the month following the month in which the right to a longer period of validity of reliefs arose.

Article 475. General Provisions

A production-sharing agreement is a contract under which the Republic of Uzbekistan grants a foreign investor, for consideration and for a specified period, exclusive rights to prospect for, explore deposits of, and extract minerals from the subsoil plot specified in the agreement.

A production-sharing agreement provides for:

• the procedure for maintaining records and reporting;
• the conditions of taxation and payment of other charges;
• the procedure for exporting the foreign investor's share.

Article 477. Taxation of Advokats

Advokat collegia, advokat firms and advokat bureaus, as non-commercial organizations in terms of activities with regard to the provision of legal assistance by advokats, must be exempt from taxes and levies, excluding: customs payments; social tax; taxes withheld at the source of payment. Where the advokat collegia, advokat firms and advokat bureaus carry out entrepreneurial activities (not connected to the provision of legal assistance by advokats), taxes and levies must be payable in the manner prescribed by this Code for legal entities, which carry out entrepreneurial activities.

Chapter 71.2. Special Rules for Taxation of Islamic Finance Transactions

Article 480.3. General Provisions

The provisions of this Code apply to the taxation of Islamic finance transactions unless this Chapter provides otherwise.

Article 480.4. Value-Added Taxation of Islamic Finance Transactions

The following are exempt from value-added tax:

1. transactions involving Islamic securities (certificates). Transactions involving Islamic securities include transactions for the custody of securities, the accounting of rights to securities, the transfer of securities and maintenance of their register, and the organization of trading in securities, except services for producing those securities;

2. services provided for consideration by a bank or microfinance organization to a settlor of trust management (principal) under a trust-management (commission) agreement within Islamic finance activities;

3. the positive difference between the total lease payments under a finance lease or Islamic lease and the acquisition price of the property when the property is transferred under that lease within Islamic finance activities;

4. the markup on goods sold to a client or buyer under agreements concluded by banks and microfinance organizations within Islamic finance activities.

Article 480.5. Profit Taxation of Islamic Finance Transactions

The following income is included in aggregate income from Islamic finance activities:

1. income in the form of remuneration from Islamic finance activities;

2. income of an Islamic insurance or Islamic reinsurance organization under insurance or reinsurance agreements;

Article 299(4) of this Code does not apply to loans extended within Islamic finance transactions.

Funds directed to charity out of fines and late-payment interest collected as a result of late payments by clients within Islamic finance activities are included among deductible expenses when determining the profit-tax base.

Article 480.6. Taxation by Other Taxes within Islamic Finance Transactions

Income of individuals received under agreements for the provision of funds, on the basis of intermediation (agency), trust management, or partnership, to banks and microfinance organizations engaged in Islamic finance activities is not subject to individual income tax.

Banks and microfinance organizations that provide immovable property under a finance lease or Islamic lease within Islamic finance activities are property-tax payers.

For immovable property transferred or received under a finance lease or Islamic lease agreement within Islamic finance activities, the lessors, being banks and microfinance organizations, are land-tax payers.

Article 482. Temporary Procedure for Applying an Interest-Free Deferral or Installment Plan for Taxes and Advance Tax Payments and for Performing Tax Obligations under Special Conditions

An interest-free deferral or installment plan for taxes and advance tax payments is granted:

for the taxes specified in items 6, 7, and 8 of part one of Article 17 of this Code, by local bodies of state power, unless otherwise provided by the third textual paragraph of this part. For those taxes, a deferral or installment plan could be granted under a simplified procedure through December 31, 2020, for no more than six months;

for the taxes specified in items 6 through 9 of part one of Article 17 of this Code and turnover tax, to microfirms, small enterprises, and individual entrepreneurs that suspended their activities and/or whose income from the sale of goods or services decreased by more than 50 percent in comparison with their average monthly income from the sale of goods or services during the first quarter of 2020. A deferral or installment plan for those taxes was granted through December 31, 2020, followed by payment of the deferred or installment amounts under the procedure established by part five of this Article.

[The third textual paragraph of part one of Article 482 as revised by Law of the Republic of Uzbekistan No. ZRU-714 of September 14, 2021; National Database of Legislation, September 15, 2021, No. 03/21/714/0874. This provision also applies to relations arising from January 1, 2021.]

The procedure for granting a tax deferral or installment plan under Chapter 11 of this Code does not apply to an interest-free deferral or installment plan provided by this Article.

An interest-free deferral or installment plan for the taxes and advance tax payments specified:

1. in the second textual paragraph of part one of this Article is granted on the basis of the taxpayer's application and opinions from the heads of the territorial subdivisions of the Ministry of Economic Development and Poverty Reduction and the Ministry of Finance of the Republic of Uzbekistan, without requiring other documents;

2. in the third textual paragraph of part one of this Article is applied by microfirms, small enterprises, and individual entrepreneurs when they submit to the tax authorities:

at the location of the object of taxation, notice of application of a deferral or installment plan for property tax, land tax, and tax for the use of water resources no later than the tax or advance-tax-payment deadlines established by part six of Article 417, part one of Article 432, and part three of Article 448 of this Code; an individual entrepreneur submits notice for property tax and land tax;

at the place of tax registration, notice of application of a deferral or installment plan for turnover tax and social tax concurrently and within the deadline established for filing the tax return.

Application by taxpayers of a deferral or installment plan for the taxes and advance tax payments specified in the third textual paragraph of part one of this Article without notifying the tax authorities is treated as late payment. In those cases, the tax authorities that identify the taxpayers charge late-payment interest on the unpaid taxes and advance tax payments under the procedure established by Article 110 of this Code.

The taxes and advance tax payments specified in the third textual paragraph of part one of this Article for which a deferral or installment plan was granted are paid:

[The first textual paragraph of part five of Article 482 as revised by Law of the Republic of Uzbekistan No. ZRU-714 of September 14, 2021; National Database of Legislation, September 15, 2021, No. 03/21/714/0874. This provision also applies to relations arising from January 1, 2021.]

1. for social tax, in equal installments over six months, no later than the tax-payment deadlines established by part five of Article 407 and part five of Article 408 of this Code;

[Item 1 of part five of Article 482 as revised by Law of the Republic of Uzbekistan No. ZRU-847 of June 16, 2023; National Database of Legislation, June 17, 2023, No. 03/23/847/0384. This provision also applies to relations arising from January 1, 2023.]

2. in equal installments over twelve months for:

legal-entity property tax, no later than the advance-tax-payment deadline established by part six of Article 417 of this Code or, for an individual entrepreneur, no later than the fifteenth day of each month;

legal-entity land tax, no later than the tax-payment deadline established by part one of Article 432 of this Code or, for an individual entrepreneur, no later than the fifteenth day of each month;

tax for the use of water resources, no later than the advance-tax-payment deadline established by part three of Article 448 of this Code;

turnover tax, no later than the fifteenth day of each month.

Payment of property tax and land tax deferred under part one of this Article and remaining unpaid as of December 31, 2020, commenced on January 1, 2022. Local bodies of state power may independently determine, for a period not exceeding two years, the period over which amounts deferred under the second textual paragraph of part one of this Article are subsequently paid.

[Article 482 supplemented by part six by Law of the Republic of Uzbekistan No. ZRU-714 of September 14, 2021; National Database of Legislation, September 15, 2021, No. 03/21/714/0874. This provision also applies to relations arising from January 1, 2021.]

If a taxpayer is liquidated during an interest-free deferral or installment plan for taxes or advance tax payments, the deferred or installment amount is paid into the budget system under the procedure provided by legislation.

Property tax on individuals and land tax on individuals for 2020 were payable by October 15, 2020.

In 2020, a corporate-profit-tax payer could, by the twentieth day of the first month of the current reporting period, submit to the tax authority at its place of tax registration a statement of monthly advance corporate-profit-tax payments for the current reporting period based on expected profit, without applying the prescribed requirement to calculate corporate profit tax using the results of the preceding quarter. If the tax authorities discovered that advance payments were understated, they could revise the monthly advance payments.

Taxpayers receiving the income specified in Article 393 of this Code filed a return of total annual income for 2019 with the tax authority at their permanent place of residence by August 1, 2020. Personal income tax calculated using that return was payable no later than the filing deadline.

Food-service enterprises were entitled, upon notifying the tax authorities and without applying to local bodies of state power, to defer repayment or pay by installments, in equal amounts and without interest from January 1 through July 1, 2022, arrears existing as of August 15, 2021, in turnover tax, corporate profit tax, tax for the use of water resources, legal-entity land tax, and legal-entity property tax, and fines and late-payment interest on all taxes and levies.

[Article 482 supplemented by part eleven by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021; National Database of Legislation, December 30, 2021, No. 03/21/741/1219. This provision also applies to relations arising from August 15, 2021.]

Business entities, other than entities registered in the city of Tashkent, that are included in the "20,000 Entrepreneurs - 500,000 Qualified Specialists" Program on the basis of cooperation agreements are granted an installment plan for the taxes specified in items 2, 3, except corporate profit tax at source, and 5 through 9 of part one of Article 17 of this Code, and turnover tax, for the following periods according to the number of new jobs they create:

up to three months, if 51 through 100 new jobs are created;

up to six months, if 101 through 200 new jobs are created;

up to twelve months, if more than 200 new jobs are created.

The installment plan for the taxes specified in part twelve of this Article is granted:

by the Tax Committee under the Cabinet of Ministers of the Republic of Uzbekistan, on the basis of an application by a business entity included in the "20,000 Entrepreneurs - 500,000 Qualified Specialists" Program;

without the pledge of property, surety, or bank guarantee provided for by Chapter 13 of this Code; without accrual of the interest provided for by Article 100 of this Code; and without analysis of financial condition or submission of the documents provided for by part two of Article 101 of this Code, except in the cases provided for by part one of Article 98 of this Code.

[Article 482 supplemented by parts twelve and thirteen by Law of the Republic of Uzbekistan No. ZRU-923 of April 2, 2024; National Database of Legislation, April 3, 2024, No. 03/24/923/0264. These provisions also apply to relations arising from July 1, 2023.]

Article 483. Temporary Tax Reliefs

Until October 1, 2020, accrued interest on credits that commercial banks deferred during a payment deferral granted on credits to legal entities, individuals, and individual entrepreneurs experiencing financial difficulties was excluded from total income in calculating corporate profit tax.

Until December 31, 2020:

1. tour operators, travel agents, and entities providing hotel or accommodation services in the tourism sector; Uzbekistan Airways Joint-Stock Company and its structural subdivisions; Uzbekistan Airports Joint-Stock Company and the international airports organized as limited-liability companies within it; and the UzAeronavigation Center State Unitary Enterprise:

were exempt from legal-entity property tax and legal-entity land tax;

paid social tax at a rate of 1 percent;

2. value-added-tax payers whose turnover from the sale of goods or services did not exceed one billion soums per month and that used electronic invoices could calculate and pay value-added tax quarterly under the procedure established by Chapter 37 of this Code;

3. the income specified in part four of Article 299 of this Code was excluded from total income in calculating corporate profit tax and turnover tax;

4. accrual and payment of fixed-amount personal income tax and social tax for the taxpayers specified in Article 408 of this Code that were compelled to suspend their activities during quarantine measures was suspended on the basis of notice of temporary suspension sent to the tax authority at the place of activity as an electronic document through the taxpayer's personal account.

Upon resuming activity, the taxpayer was required, before commencing activity, to notify the tax authority at the place of activity in the same manner;

5. construction materials and other goods imported into the Republic of Uzbekistan and necessary for the construction and operation of medical and quarantine facilities combating coronavirus infection were exempt from value-added tax and excise tax;

6. for the facilities provided for by part three of Article 415, part six of Article 422, part twelve of Article 429, and part six of Article 437 of this Code, including facilities identified before April 1, 2020, increased property-tax and land-tax rates established by legislation did not apply, late-payment interest was not charged, and measures for enforced collection of the related arrears were not taken.

From May 1, 2021, through December 31, 2022, the following was exempt from value-added tax:

[The first textual paragraph of part three of Article 483 as revised by Law of the Republic of Uzbekistan No. ZRU-767 of May 5, 2022; National Database of Legislation, May 6, 2022, No. 03/22/767/0386. This provision also applies to relations arising from May 1, 2022.]

the importation into the Republic of Uzbekistan of vegetable oil, sunflower and flax seeds, and soybeans;

turnover from the production and/or sale of vegetable oil other than cottonseed oil.

[Article 483 supplemented by part three by Law of the Republic of Uzbekistan No. ZRU-689 of April 29, 2021; National Database of Legislation, April 29, 2021, No. 03/21/689/0395.]

Until January 1, 2022, measures for enforced collection of tax arrears existing as of December 31, 2020, were not taken and late-payment interest was not charged:

on legal-entity property tax and legal-entity land tax for business entities conducting activities in tourism, transportation, and food services;

on legal-entity property tax and legal-entity land tax assessed but not paid by legal entities in 2020 because of temporary difficulties;

on taxes, late-payment interest, and assessed fines for violations of tax legislation by microfirms and small enterprises having arrears as of May 15, 2020.

Until December 31, 2021, tour operators, travel agents, and entities providing hotel or accommodation services in the tourism sector:

paid corporate profit tax at a rate reduced by 50 percent from the prescribed rate;

paid social tax at a rate of 1 percent;

were exempt from legal-entity property tax and legal-entity land tax.

The following were exempt from property tax, land tax, turnover tax, and fixed-amount personal income tax for individual entrepreneurs:

through January 1, 2024, newly established business entities conducting activities designated by decision of the President of the Republic of Uzbekistan as growth points for each district and city of the Republic of Karakalpakstan;

through January 1, 2024, newly established industrial business entities located in the Takhtakupyr, Bozatau, and Shumanay districts of the Republic of Karakalpakstan. These taxpayers paid corporate profit tax and tax for the use of water resources at rates reduced by 50 percent from the prescribed rates;

through January 1, 2026, newly established business entities specializing in services and located in the forty-five mahallas and auls having difficult conditions in the Republic of Karakalpakstan, according to a list determined by the Jokargy Kenes of the Republic of Karakalpakstan. These business entities were also exempt from corporate profit tax.

[Article 483 supplemented by parts four through six by Law of the Republic of Uzbekistan No. ZRU-714 of September 14, 2021; National Database of Legislation, September 15, 2021, No. 03/21/714/0874.]

From September 1, 2024, through September 1, 2027:

the tax reliefs established for members of the Hunarmand Association also apply to individual entrepreneurs that manufacture jewelry and are members of the Uzbekzargarsanoati Association;

immovable property and land plots used in production by business entities that manufacture jewelry and are members of the Uzbekzargarsanoati Association are exempt from property tax and land tax.

Until January 1, 2024, scientific and laboratory equipment, reagents, and consumables having no equivalents manufactured in the Republic of Uzbekistan and imported into the Republic of Uzbekistan for the Aral Sea Region Innovation Support Fund according to lists prepared under the prescribed procedure were exempt from value-added tax.

[Article 483 supplemented by parts seven and eight by Law of the Republic of Uzbekistan No. ZRU-722 of October 14, 2021; National Database of Legislation, October 15, 2021, No. 03/21/722/0960. Part eight of Article 483 also applies to relations arising from January 1, 2021.]

From October 10, 2021, through April 30, 2022, turnover from the sale of chicken meat, frozen fish, and live poultry was exempt from value-added tax. From October 10, 2021, through December 31, 2022, turnover from the sale of meat, including beef and mutton, live animals, including cattle and sheep, products of their slaughter, and potatoes, and the importation of those items into the Republic of Uzbekistan, was exempt from value-added tax.

[Part nine of Article 483 as revised by Law of the Republic of Uzbekistan No. ZRU-767 of May 5, 2022; National Database of Legislation, May 6, 2022, No. 03/22/767/0386. This provision also applies to relations arising from May 1, 2022.]

From September 1 through December 31, 2021, food-service enterprises were exempt from legal-entity land tax and legal-entity property tax.

From January 1, 2022, through January 1, 2023, individual entrepreneurs conducting activities in districts of the republic, other than the city of Tashkent, applied the social-tax amount of 50 percent of the base calculation amount.

[Article 483 supplemented by parts ten and eleven by Law of the Republic of Uzbekistan No. ZRU-741 of December 29, 2021; National Database of Legislation, December 30, 2021, No. 03/21/741/1219. Part ten of Article 483 also applies to relations arising from September 1, 2021.]

Until January 1, 2024, newly established business entities, other than clusters, that were registered by the state in the Bandikhan, Kizirik, Muzrabad, or Sherabad districts, or in mountainous districts or areas with saline land in Surkhandarya Region, and conducted activities in those districts or areas were exempt from legal-entity land tax, legal-entity property tax, turnover tax, and fixed-amount personal income tax for individual entrepreneurs.

From September 10, 2021, through January 1, 2024, newly established business entities, other than clusters, that were registered by the state in mountainous districts or areas with saline land in Surkhandarya Region and conducted activities in those areas paid corporate profit tax at rates reduced by 50 percent from the prescribed rate.

The list of mountainous districts and areas with saline land specified in parts twelve and thirteen of this Article is approved by the Kengash of People's Deputies of Surkhandarya Region.

From May 1, 2020, through November 1, 2022, fish-farming, livestock, and poultry farms affected by the emergency in the Sardoba, Akaltyn, and Mirzaabad districts of Syrdarya Region were exempt from legal-entity land tax and legal-entity property tax. The Kengash of People's Deputies of Syrdarya Region approves the list of affected farms.

[Article 483 supplemented by parts twelve through fifteen by Law of the Republic of Uzbekistan No. ZRU-758 of March 11, 2022; National Database of Legislation, March 12, 2022, No. 03/22/758/0207.]

From January 1, 2022, through January 1, 2031, business entities in local industry, agriculture, and services in Muynak District of the Republic of Karakalpakstan:

pay corporate profit tax, turnover tax, social tax, and personal income tax at rates of 1 percent;

pay legal-entity property tax, legal-entity land tax, and tax for the use of water resources in an amount equal to 1 percent of the amount assessed for those taxes.

From February 1, 2022, through January 1, 2025, business entities, including those exporting through a commission agent or attorney, that exported dyed fabric, dyed cloth, and finished apparel and knitwear paid social tax at a rate of 1 percent.

The relief provided by part seventeen of this Article applies to taxpayers whose revenue from exports of dyed fabric, dyed cloth, and finished apparel and knitwear constitutes at least 80 percent of revenue from the sale of all goods and services.

[Article 483 supplemented by parts sixteen, seventeen, and eighteen by Law of the Republic of Uzbekistan No. ZRU-767 of May 5, 2022; National Database of Legislation, May 6, 2022, No. 03/22/767/0386. Parts seventeen and eighteen also apply to relations arising from February 1, 2022.]

Any corporate-profit-tax relief remaining unused after January 1, 2020, by participants in special economic zones applies in full to participants entered in the register of special-economic-zone participants before October 1, 2020, for three to ten years from their entry in the register according to the amount of investment they made under legislative acts in force before January 1, 2020. This part does not apply to the duration of the corporate-profit-tax relief provided by part two of Article 473 of this Code.

[Article 483 supplemented by part nineteen by Law of the Republic of Uzbekistan No. ZRU-783 of July 12, 2022; National Database of Legislation, July 13, 2022, No. 03/22/783/0620.]

From January 1, 2025, through January 1, 2028, business entities providing retail and food-service, hotel or accommodation, road passenger and freight transportation, motor-vehicle repair and maintenance, computer, household-appliance repair, agricultural, veterinary, or entertainment-center services and employing workers not older than thirty years pay social tax on the employment income of those workers at a rate of 1 percent.

The relief provided by part twenty of this Article applies to business entities that simultaneously meet all of the following conditions:

employees are accrued an average monthly salary of at least 2.5 times the minimum wage each month;

income from the specified activities constitutes at least 60 percent of total income for the current reporting or tax period. If concealment of the number of employees is discovered, the relief is canceled.

Until January 1, 2024, when individuals converted residential immovable property located along inter-mahalla commercial and service streets into nonresidential immovable property for providing the services specified in part twenty of this Article, they paid individual property tax and individual land tax at the rates prescribed for residential immovable property and the land plots occupied by it.

The Council of Ministers of the Republic of Karakalpakstan and the khokimiyats of the regions and the city of Tashkent determine the list of inter-mahalla commercial and service streets.

From January 1, 2022, through January 1, 2027, business entities may, with respect to shopping complexes having an area exceeding five thousand square meters and hotels or accommodation facilities, including the land plots they occupy:

apply a coefficient of 0.1 to the rates of legal-entity property tax and legal-entity land tax. For such immovable property newly constructed before January 1, 2027, and the land plots it occupies, the relief applies for five years from the month in which the property is commissioned;

in calculating corporate profit tax, charge the cost of those buildings to deductible expenses as depreciation over two years.

From April 1, 2022, through January 1, 2025, business entities registered in designated tourist zones in districts and cities specified in decisions of the President of the Republic of Uzbekistan and providing food-service, hotel or accommodation, retail, entertainment, tour-operator, or travel-agent services in those areas paid:

turnover tax at a rate of 1 percent;

legal-entity property tax and legal-entity land tax for facilities located in those areas and the land plots they occupy in an amount equal to 1 percent of the amount assessed for those taxes.

The boundaries of tourist zones in districts and cities are determined by the Jokargy Kenes of the Republic of Karakalpakstan and the Kengashes of People's Deputies of the regions on the basis of opinions from the principal territorial departments of the Ministry of Tourism and Cultural Heritage and the Ministry of Economic Development and Poverty Reduction of the Republic of Uzbekistan.

From April 1, 2022, through December 31, 2028:

[The first textual paragraph of part twenty-seven of Article 483 as revised by Law of the Republic of Uzbekistan No. ZRU-891 of December 28, 2023; National Database of Legislation, December 29, 2023, No. 03/23/891/0989; effective January 1, 2024.]

dividend income of individuals who are residents or nonresidents of the Republic of Uzbekistan from shares they own as shareholders is exempt from personal income tax;

dividend income of legal entities that are nonresidents of the Republic of Uzbekistan from shares they own as shareholders is subject to corporate profit tax at a rate of 5 percent;

interest income of individuals and legal entities that are residents or nonresidents of the Republic of Uzbekistan from bonds of business companies is exempt from personal income tax and corporate profit tax.

From April 1, 2022, through January 1, 2025, business entities whose income from manufacturing national musical instruments constituted at least 60 percent of total income for the current reporting or tax period paid turnover tax and social tax at rates of 1 percent.

Until January 1, 2025, taxpayers that established fish farming in farms on a cooperative basis were exempt from all taxes except value-added tax and social tax.

The relief provided by part twenty-nine of this Article applies to taxpayers whose income from fish-farming activity constitutes more than 90 percent of total income for the current reporting or tax period.

From January 1, 2023, through January 1, 2026, taxpayers engaged in procuring, storing, and processing hides, fur and pelt raw materials, and wool; automated livestock slaughter; and manufacturing wool, karakul, or artificial-leather products, leather goods, or footwear were exempt from corporate profit tax, turnover tax, and legal-entity property tax with respect to those activities.

The reliefs established by part thirty-one of this Article apply to:

taxpayers that are specialized livestock-slaughter organizations equipped with modern automated systems;

taxpayers collecting and procuring hide, fur, pelt, karakul, and wool raw materials for subsequent sale for processing or use, provided that income from those activities constitutes at least 80 percent of total income for the reporting or tax period;

taxpayers processing hide, fur, pelt, karakul, and wool raw materials or manufacturing components, fittings, accessories, shoe lasts, shoe soles, shoe uppers, gelatin, artificial leather, footwear, leather goods, fur, karakul products, or wool products, provided that income from those activities constitutes at least 60 percent of total income for the reporting or tax period.

From January 1, 2023, through January 1, 2026, taxpayers having modern automated livestock-slaughter systems and taxpayers processing leather and manufacturing finished leather products were exempt from legal-entity land tax.

From April 1, 2022, through January 1, 2025, taxpayers paid social tax at a rate of 1 percent if, for the reporting or tax period, the following income constituted the specified share of the producer's total income:

income from the sale of children's, women's, and sports footwear; artificial eco-leather; fittings; and shoe molds and soles, at least 60 percent;

income from exports of footwear, leather goods, and fur products, at least 80 percent.

From April 1, 2022, through January 1, 2025, spare parts for medical equipment and products and consumables for medical purposes imported into the Republic of Uzbekistan according to lists prepared under the prescribed procedure were exempt from value-added tax.

From September 1, 2022, through January 1, 2025, small-business entities conducting activities in territories included in the Register of Rural Territories with a High Density of Labor Resources, having at least ten employees, and whose payroll for employed women constituted at least 50 percent of total payroll paid social tax on the payroll of those women at a rate of 1 percent.

[Article 483 supplemented by parts twenty through thirty-six by Law of the Republic of Uzbekistan No. ZRU-785 of July 26, 2022; National Database of Legislation, July 27, 2022, No. 03/22/785/0679. Part thirty-six of this Article entered into force on September 1, 2022.]

From January 1, 2023, through January 1, 2026, taxpayers whose income from collecting, removing, sorting, and processing waste constituted at least 90 percent of total income for the reporting or tax period paid corporate profit tax on that activity, except on interest income, and social tax at rates of 1 percent.

Until January 1, 2027, budget-funded organizations are exempt from all taxes on income from the sale of goods or services except social tax.

[Part thirty-eight of Article 483 as revised by Law of the Republic of Uzbekistan No. ZRU-1013 of December 24, 2024; National Database of Legislation, December 26, 2024, No. 03/24/1013/1066. This provision also applies to relations arising from January 1, 2024.]

From January 1, 2023, through January 1, 2028, business entities located in and conducting activities in any district of the Republic of Karakalpakstan, other than large taxpayers, permanent establishments, budget-funded organizations, state enterprises, legal entities in which the state's interest in the charter fund or authorized capital is 50 percent or more, and legal entities in which 50 percent or more of the charter fund or authorized capital belongs to a legal entity in which the state's interest is 50 percent or more:

pay corporate profit tax, turnover tax, legal-entity property tax, and legal-entity land tax at rates reduced by 50 percent from the prescribed rates;

pay social tax at a rate of 1 percent, while individual entrepreneurs pay one base calculation amount per year.

If a taxpayer entitled to the reliefs provided by part thirty-nine of this Article is simultaneously entitled to relief on other grounds, the taxpayer may select the most favorable relief at its discretion.

[Article 483 supplemented by parts thirty-nine and forty by Law of the Republic of Uzbekistan No. ZRU-845 of June 12, 2023; National Database of Legislation, June 13, 2023, No. 03/23/845/0360. These provisions also apply to relations arising from October 1, 2022.]

From January 1, 2023, through January 1, 2026, the Uzbekistan Football Association, its territorial subdivisions, the Professional Football League of Uzbekistan Public Association, the Uzbekistan Football Referees Center, and professional football clubs were exempt from:

all taxes except social tax;

personal income tax paid on the income of foreign specialists and football players engaged by them;

value-added tax on sports equipment and inventory; equipment, inventory, and machinery needed for broadcasting; pharmaceutical goods; sports nutrition; artificial turf for football and futsal fields; shock pads; granules; special adhesives; special professional sports gear; and vehicles, including special-purpose vehicles, having no equivalents manufactured in the Republic of Uzbekistan and imported into the Republic of Uzbekistan according to lists prepared under the prescribed procedure.

[Article 483 supplemented by a part by Law of the Republic of Uzbekistan No. ZRU-857 of July 18, 2023; National Database of Legislation, July 19, 2023, No. 03/23/857/0492. This provision also applies to relations arising from January 1, 2023.]

From January 1, 2024, through January 1, 2026, interest income received on bank credits granted for projects by commercial banks participating in the Comprehensive Program for Continuous Support of Small Business was recognized as deductible expenses for purposes of calculating corporate profit tax.

From January 1, 2024, through January 1, 2027, Survey and Development Centers pay legal-entity property tax and legal-entity land tax for the centers' facilities and the land plots they occupy in an amount equal to 1 percent of the amount assessed for those taxes, and pay social tax at a rate of 1 percent.

From January 1, 2024, through December 31, 2025, Section XVIII¹ of this Code did not apply to legal entities extracting precious, nonferrous, and/or radioactive metals and rare and rare-earth elements and/or recovering them from man-made mineral formations, hereinafter referred to as metals, or extracting hydrocarbon raw materials. This provision applies to a subsoil plot at which extraction began from January 1, 2024, through December 31, 2025, and throughout the period in which metals or hydrocarbon raw materials are extracted there.

Until January 1, 2028, turnover from the sale of goods or services, and the importation of goods, acquired under infrastructure projects implemented wholly or partly using sovereign external debt and technical assistance or grants obtained by budget-funded organizations, state enterprises, and legal entities having a state interest of 50 percent or more in their charter fund or authorized capital from international financial institutions and foreign governmental financial organizations is exempt from value-added tax. This does not apply to funds of international financial institutions or foreign governmental financial organizations refinanced or on-lent through commercial banks of the Republic of Uzbekistan. Infrastructure projects include electricity, gas, and heat supply; water supply and sewerage; water management; road and transport infrastructure; communications and telecommunications; agricultural logistics; sanitation; and solid household-waste management. This relief also applies to project participants.

Until January 1, 2025, business entities included in the "20,000 Entrepreneurs - 500,000 Qualified Specialists" Program paid legal-entity property tax and legal-entity land tax at rates reduced by:

50 percent from the prescribed rate if they created 51 through 100 new jobs;

75 percent from the prescribed rate if they created 101 through 200 new jobs;

if they created more than 200 new jobs, they were exempt from those taxes.

The reliefs provided by part forty-six of this Article are granted to business entities, other than entities registered in the city of Tashkent, that are included in the "20,000 Entrepreneurs - 500,000 Qualified Specialists" Program on the basis of cooperation agreements and simultaneously meet the following conditions:

they employ individuals included in the Unified Register of Social Protection, retain them for at least one year, and pay them a monthly salary of at least one minimum wage;

those individuals constitute at least 20 percent of the total workforce.

If a business entity fails to perform its obligations under a cooperation agreement, the reliefs provided by part forty-six of this Article are canceled and the tax-payment obligations are reinstated for the entire period in which the reliefs applied.

[Article 483 supplemented by parts forty-six through forty-eight by Law of the Republic of Uzbekistan No. ZRU-923 of April 2, 2024; National Database of Legislation, April 3, 2024, No. 03/24/923/0264. These provisions also apply to relations arising from July 1, 2023.]

From January 1, 2024, through January 1, 2027, precious stones used to manufacture jewelry and imported into the Republic of Uzbekistan were exempt from value-added tax.

Until January 1, 2026, profit received by holiday homes and recreation areas organized at children's health camps within the trade-union system outside the children's holiday season from providing services in that area was exempt from corporate profit tax.

[Article 483 supplemented by parts forty-nine and fifty by Law of the Republic of Uzbekistan No. ZRU-926 of May 13, 2024; National Database of Legislation, May 14, 2024, No. 03/24/926/0344. Part forty-nine also applies to relations arising from January 1, 2024.]

From January 1, 2023, through January 1, 2026:

income received by individuals from raising live silkworm cocoons at home as home-based work was exempt from personal income tax;

funds of legal entities raising silkworm cocoons that were directed toward paying home workers who raised live silkworm cocoons at home were exempt from social tax, provided that the released funds were used to provide financial incentives to the home workers;

land tax on land plots occupied by mulberry plantations used as a feed base for raising silkworm cocoons was calculated using a coefficient of 0.1 applied to the rates established by the Kengashes of People's Deputies of districts and cities.

[Article 483 supplemented by part fifty-one by Law of the Republic of Uzbekistan No. ZRU-1001 of November 15, 2024; National Database of Legislation, November 16, 2024, No. 03/24/1001/0929. Part fifty-one also applies to relations arising from January 1, 2023.]

From January 1, 2025, through January 1, 2030, business entities may, in calculating corporate profit tax, charge expenses connected with constructing buildings for nonstate general secondary education organizations using their own funds to deductible expenses as depreciation of the buildings' cost in equal installments over two years.

If a nonstate general secondary education organization fails to meet the licensing requirement to admit without tuition children from families in need of social protection, the depreciation deductions provided by part fifty-two of this Article are canceled by applying the depreciation rates provided by Article 306 of this Code.

Until January 1, 2027, prosthetic products and their components and spare parts imported into the Republic of Uzbekistan according to a list approved by a resolution of the President of the Republic of Uzbekistan are exempt from value-added tax.

From November 1, 2024, through January 1, 2026, turnover of wagon or container operators resident in the Republic of Uzbekistan from providing wagons or containers for use under a lease agreement in the rail-transport process was exempt from value-added tax.

[Article 483 supplemented by parts fifty-two through fifty-five by Law of the Republic of Uzbekistan No. ZRU-1013 of December 24, 2024; National Database of Legislation, December 26, 2024, No. 03/24/1013/1066.]

From January 1, 2025, through January 1, 2029, taxpayers whose income from publishing and printing constituted at least 90 percent of total income for the reporting or tax period are exempt from corporate profit tax on that activity, except on interest income.

From January 1, 2025, through January 1, 2028, business entities that employ low-income family members at a monthly salary of at least 1.5 times the minimum wage pay social tax at a rate of 1 percent on expenses for paying salaries to employees who are members of poor families.

From September 1, 2024, through September 1, 2027:

business entities that employ pupils of schools, colleges, and technical schools not older than thirty years for vocational training pay social tax at a rate of 1 percent on the employment income paid to them;

pupils of schools, colleges, and technical schools undergoing vocational training pay personal income tax at a rate of 1 percent on employment income received from business entities.

Until January 1, 2028, young persons not older than thirty years that organize mobile retail outlets along trunk roads are exempt from taxes on income received from the sale of goods or services during the first six months after commencing activity.

From February 1, 2025, through January 1, 2030, legal entities that are nonresidents of the Republic of Uzbekistan, other than tax residents of states having a double-taxation agreement with the Republic of Uzbekistan, whose volume of exported services exceeds USD 10 million during a calendar year are exempt from corporate profit tax on income from providing information-technology services, including services for which royalties are paid, to residents of the Technology Park of Software Products and Information Technologies.

From February 1, 2025, through January 1, 2040, personal income tax and corporate profit tax on dividend income of founders or members of residents of the Technology Park of Software Products and Information Technologies who are individuals or legal entities that are nonresidents of the Republic of Uzbekistan, where exports constitute more than 50 percent of total income, are calculated at the rates prescribed for residents of the Republic of Uzbekistan.

From January 1, 2028, through January 1, 2040, residents of the Technology Park of Software Products and Information Technologies are exempt from all taxes except value-added tax.

The reliefs established by part sixty-two of this Article apply to:

legal entities whose exports from activities permitted for residents of the Technology Park of Software Products and Information Technologies constitute more than 50 percent of total income during a calendar year;

legal entities providing information-technology education services, where 50 percent of graduates older than eighteen years are employed during the calendar year by exporting enterprises that are residents of the Technology Park of Software Products and Information Technologies.

Until January 1, 2030, nonstate preschool and general secondary education organizations, and business entities providing daytime-care services for children with disabilities between three and eighteen years of age as public-private partnerships, are exempt from all taxes except social tax.

Funds released as a result of the reliefs provided by part sixty-four of this Article must be used for the designated purposes of equipping nonstate preschool and general secondary education organizations with modern teaching aids; acquiring necessary goods and equipment; reconstructing and carrying out major repairs to buildings and structures; and providing free educational services to socially vulnerable groups.

Until January 1, 2030, modern educational and laboratory equipment, computer hardware, software products, educational and scientific-methodological literature, inventory, and material and technical resources not manufactured in the Republic of Uzbekistan and imported into the Republic of Uzbekistan according to lists prepared under the prescribed procedure to equip and support the activities of nonstate preschool and general secondary education organizations are exempt from value-added tax.

Until January 1, 2030, foreign teachers and specialists employed by nonstate preschool and general secondary education organizations are exempt from personal income tax.

Until January 1, 2030, nonstate preschool and general education organizations employing foreign teachers and specialists are exempt from social tax on labor costs for those employees.

Until January 1, 2027, business entities retailing digitally marked products may reduce assessed and payable corporate profit tax or turnover tax, or personal income tax payable by individual entrepreneurs, by expenses connected with acquiring marking readers for the business entities, but by no more than four times the base calculation amount for each device.

Until January 1, 2030, business entities producing poultry products are exempt from legal-entity land tax, except on crop areas.

The reliefs established by part seventy of this Article do not apply to business entities that do not sell poultry products and/or to land plots used other than for their designated purpose.

Until January 1, 2027, stationary children's health camps within the system of the Federation of Trade Unions of Uzbekistan are exempt from:

corporate profit tax on income from leasing buildings, structures, and land plots;

legal-entity property tax and legal-entity land tax on the leased property and the land plots it occupies.

From January 1, 2025, through January 1, 2026, the administrations managing the leather and footwear industrial zones established in the Sharaf Rashidov District of Jizzakh Region and the Akhangaran District of Tashkent Region, and enterprises established in those industrial zones, were exempt from legal-entity property tax, legal-entity land tax, and tax for the use of water resources.

From January 1, 2025, through January 1, 2028, business entities conducting manufacturing activities in the apparel and knitwear, footwear, and leather-goods industries pay corporate profit tax at a rate of 2 percent and social tax at a rate of 1 percent.

The reliefs established by part seventy-four of this Article apply to business entities that simultaneously meet all of the following conditions:

employees are accrued an average monthly salary of at least twice the minimum wage each month;

at the end of the reporting period, income from the sale of weaving products, including knitted fabric, cotton fabric, hosiery, apparel and knitwear, footwear, or leather goods, and income from processing raw materials transferred on a toll-processing basis under an agreement, constitutes at least 70 percent of total income from the sale of all goods or services.

The reliefs apply for the relevant quarter provided that the requirements in part seventy-five of this Article are met in each month of that quarter.

The tax authorities automatically, without human intervention, identify business entities simultaneously meeting all the conditions in part seventy-five of this Article by the twenty-fifth day of the month following the reporting quarter.

If a business entity files a revised tax return after applying the reliefs established by part seventy-four of this Article and facts demonstrating failure to meet the prescribed conditions are discovered, the reliefs are canceled and the taxes are calculated and collected into the budget with late-payment interest.

From January 1, 2025, through January 1, 2028, fruit-tree rootstocks and rootstocks, scions, mother stock, and technical equipment imported from foreign countries other than neighboring states to establish new orchards by project initiators included in a list approved by the President of the Republic of Uzbekistan are exempt from value-added tax.

From January 1, 2025, through January 1, 2028, pharmaceutical manufacturers are exempt from excise tax on polyethylene granules specified in item 2 of part one of Article 289³ of this Code that they import into the Republic of Uzbekistan for their own production needs.

Income of legal entities that are residents or nonresidents of the Republic of Uzbekistan from bonds issued by mortgage-refinancing organizations and their specially authorized organizations is exempt from corporate profit tax through January 1, 2030.

The relief provided by part eighty-one of this Article applies to interest income accrued during the circulation period of those bonds.

Beginning May 1, 2025, legal entities leasing a land plot acquired at auction for constructing apartment housing as part of the establishment of New Uzbekistan residential areas are exempt from land tax on that plot for twelve months from the date the lease commences. If the apartment housing is not constructed and commissioned within the prescribed period, land tax for the relief period is collected at twice the amount.

From April 1, 2025, through January 1, 2028, newly established cooperatives for growing and processing agricultural products and medicinal plants pay social tax and personal income tax for their employees at rates of 1 percent.

From May 1, 2025, through January 1, 2031, residents of the Creative Park:

pay personal income tax on their employees' employment income and social tax at rates reduced by 50 percent from the prescribed rates;

are turnover-tax payers regardless of the amount of income received from the sale of goods or services.

From May 1, 2025, through January 1, 2028, business entities selling fruit and vegetable products in modern packaging that simultaneously meet all of the following conditions pay corporate profit tax and social tax at rates of 1 percent:

each employee is accrued a monthly salary of at least twice the minimum wage;

income from the sale of fruit and vegetable products in modern packaging constitutes at least 50 percent of total income for the reporting or tax period. The share of that income is determined using the phytosanitary certificate of the relevant authorized state body and the cargo customs declaration.

From July 1, 2025, through January 1, 2030:

legal entities whose income from creating content intended for children constitutes at least 80 percent of total annual income, and the Children's Content Development Center, are exempt from corporate profit tax on income from selling that content and pay social tax at a rate of 1 percent;

legal entities may deduct expenses connected with creating content intended for children in calculating corporate profit tax.

From September 1, 2025, through September 1, 2028, cotton-textile clusters and enterprises in the textile and apparel and knitwear industries pay social tax at a rate of 1 percent.

From September 1, 2025, through January 1, 2028, polyethylene granules specified in item 2 of part one of Article 289³ of this Code that are not manufactured in the Republic of Uzbekistan and are imported according to a list prepared under the prescribed procedure on the basis of specific technical parameters are exempt from excise tax.

From January 1, 2026, through January 1, 2030, business entities transitioning for the first time from turnover tax to value-added tax and corporate profit tax may, for six months, reduce value-added tax or property tax payable into the budget by expenses connected with maintaining accounting records, but by no more than 3.5 times the minimum wage per month.

The procedure established by part ninety of this Article applies on the basis of an employment agreement with an accountant responsible for the business entity's accounting or an outsourcing agreement for accounting services, except where responsibility for maintaining accounting records is assigned to the head of the business entity.

Until January 1, 2028, jewelry manufacturers determine the value-added-tax base using the positive difference between the selling price of jewelry and semifinished products and the price of the precious metals and precious stones contained in them.

If distributors sell to domestic manufacturers technological equipment used in the furniture industry and imported under item 6 of Article 246 of this Code, the value-added-tax base through January 1, 2030, is determined using the positive difference between the equipment's acquisition price and selling price.

Until January 1, 2028:

legal-entity property tax and legal-entity land tax on electric motor-vehicle charging stations and the land plots they occupy are paid in an amount equal to 1 percent of the amount assessed for those taxes;

taxpayers whose income from providing electric motor-vehicle charging services constitutes at least 50 percent of total income for the reporting or tax period are exempt from corporate profit tax on income from those services;

income from providing electric motor-vehicle charging services is deducted from the turnover-tax base.

Dividend income of the National Investment Fund of the Republic of Uzbekistan is exempt from corporate profit tax through January 1, 2030.

From January 1, 2026, through January 1, 2030, legal entities whose income from the sale of national films and television series constitutes at least 80 percent of total annual income are exempt from corporate profit tax on income from selling those films and series and pay social tax at a rate of 1 percent.

For enterprises extracting gypsum raw materials for their own needs and manufacturing finished construction materials from them, 50 percent of the prescribed subsoil-use tax rate for extracting gypsum raw materials applies from January 1, 2026, through January 1, 2028.

Greenhouse farms whose income from greenhouse activity constitutes at least 60 percent of total income for the current reporting or tax period pay social tax at a rate of 1 percent from January 1, 2026, through January 1, 2029.

From January 1, 2026, through January 1, 2028, expenses of domestic industrial enterprises connected with transporting and feeding employees whose average monthly salary is at least twice the minimum wage reduce the social-tax base, up to one base calculation amount per employee per month.

The relief established by part ninety-nine of this Article applies to:

enterprises in the sericulture, food, construction-materials, electrical-engineering, pharmaceutical, furniture, chemical, perfumery, cosmetics, automotive, and metallurgical industries;

taxpayers whose income from the sale of products of their own production constitutes more than 60 percent of total income for the current reporting or tax period.

Until January 1, 2028:

turnover from the sale by commercial banks of greenhouses and related immovable property that secured obligations and was taken onto the banks' balance sheets because greenhouse farms failed to perform credit obligations is exempt from value-added tax;

commercial banks are exempt from land tax on greenhouses and related immovable property that secured obligations and was taken onto their balance sheets because greenhouse farms failed to perform credit obligations.

From January 1, 2026, through January 1, 2031, under projects establishing medium-Earth-orbit and low-Earth-orbit satellite communications networks in Uzbekistan through a central ground station:

equipment, software products, spare parts, and components imported into the Republic of Uzbekistan are exempt from value-added tax;

turnover of satellite-network operators from providing services through the satellite communications system is exempt from value-added tax;

telecommunications structures housing central ground stations, terminals, and other active satellite-communications infrastructure equipment, and their land areas, are exempt from legal-entity property tax and legal-entity land tax;

profit of satellite-network operators from providing services through the established satellite communications system is exempt from corporate profit tax.

[National Database of Legislation: December 31, 2019, No. 02/19/NK/4256; March 11, 2020, No. 03/20/607/0279; October 5, 2020, No. 03/20/640/1348; November 9, 2020, No. 03/20/646/1488; December 2, 2020, No. 03/20/652/1581; December 4, 2020, No. 03/20/653/1592; December 31, 2020, No. 03/20/659/1681; April 29, 2021, No. 03/21/689/0395; August 17, 2021, No. 03/21/708/0799; September 15, 2021, No. 03/21/714/0874; October 12, 2021, No. 03/21/721/0952; October 15, 2021, No. 03/21/722/0960; October 26, 2021, No. 03/21/725/0995; October 30, 2021, No. 03/21/726/1001; December 30, 2021, No. 03/21/741/1219; February 10, 2022, No. 03/22/752/0113; March 12, 2022, No. 03/22/758/0207; March 14, 2022, No. 03/22/759/0213; May 6, 2022, No. 03/22/767/0386; May 18, 2022, No. 03/22/770/0424; June 1, 2022, No. 03/22/773/0461; June 7, 2022, No. 03/22/775/0477; July 13, 2022, No. 03/22/783/0620; July 27, 2022, No. 03/22/785/0679; December 31, 2022, No. 03/22/812/1145; June 13, 2023, No. 03/23/845/0360; June 17, 2023, No. 03/23/847/0384; July 19, 2023, No. 03/23/857/0492; December 29, 2023, No. 03/23/891/0989; February 8, 2024, No. 03/24/906/0108; February 21, 2024, No. 03/24/910/0140; February 22, 2024, No. 03/24/911/0142; April 3, 2024, No. 03/24/923/0264; May 14, 2024, No. 03/24/926/0344; May 30, 2024, No. 03/24/927/0379; August 14, 2024, No. 03/24/942/0612; August 30, 2024, No. 03/24/951/0673; September 9, 2024, No. 03/24/957/0689; October 19, 2024, No. 03/24/977/0831; November 6, 2024, No. 03/24/992/0895; November 16, 2024, No. 03/24/1000/0928; November 16, 2024, No. 03/24/1001/0929; December 26, 2024, No. 03/24/1013/1066; December 26, 2024, No. 03/24/1014/1067; February 7, 2025, No. 03/25/1025/0116; February 19, 2025, No. 03/25/1031/0160.]