Corporate income tax in Uzbekistan

Corporate income tax is calculated on taxable profit: for a resident legal entity, this means income minus expenses (Art. 295 of the Tax Code). The standard rate is 15% (Art. 337 of the Tax Code). A company keeps its own tax records, files returns and pays the tax.

In brief:

• The rate for most legal entities is 15% (Art. 337 of the Tax Code); banks and certain other categories have special rates.
• The tax base is calculated cumulatively (Art. 296 of the Tax Code) from the start of the year, taking account of special adjustments and carried-forward losses.
• The quarterly return is due by the 20th (Art. 339 of the Tax Code) of the following month, and the annual return is due by 1 March of the following year.
• The main practical question is not the label given to an expense but its connection with income, business justification and documentary support (Art. 305 of the Tax Code).

Updated: 04 September 2026

Who pays corporate income tax

There are six groups (Art. 294 of the Tax Code) of taxpayers: resident legal entities; non-residents operating through a permanent establishment; non-residents receiving Uzbekistan-source income; the responsible participant of a consolidated group; individual entrepreneurs whose sales income exceeds UZS 1,000,000,000 or who voluntarily choose to pay the tax; and the trustee managing a simple partnership.

For a resident legal entity, the tax object is the difference between aggregate income and deductible expenses. A permanent establishment includes income connected with its activity, including connected foreign-source income, and deducts its expenses. A non-resident without a permanent establishment is taxed on Uzbekistan-source income without an expense deduction.

The tax base is the profit subject to tax. It is determined cumulatively, while transactions governed by a special calculation are recorded separately. The base may also include profits of controlled foreign companies and adjustments for controlled transactions.

This article explains the general calculation. Special adjustments are covered separately in the articles on controlled foreign companies and transfer pricing. They matter when a business has foreign structures or controlled transactions.

Corporate income tax rates in Uzbekistan

The standard rate is 15%, but separate rates (Art. 337 of the Tax Code) apply according to the taxpayer and type of income. The table shows the principal, but not every sector-specific, case.

If employees with disabilities account for more than 3% of the average annual headcount, the rate is reduced by one percentage point for each full percentage point above 3%. Example. With a 6% share and an initial 15% rate, the reduction is 3 percentage points: 15% − 3% = 12%.

For dividends, the tax agent calculates tax separately (Art. 343 of the Tax Code) for every recipient and payment. The return is filed by the 20th of the following month and the tax is paid by the payment date (Art. 345 of the Tax Code).

Sector exemptions, temporary zero rates and their conditions change independently of the standard rate. The article on tax incentives explains who may use them and what evidence is required. A relief should be checked before calculating the base and rate.

How to calculate corporate income tax

The calculation starts with aggregate income. Receipts that the Code excludes from income are removed, then deductible expenses, depreciation, the investment deduction and carried-forward loss are deducted. The rate is applied to the result:

Tax base = aggregate income − excluded receipts − deductible expenses − carried-forward loss ± special adjustments.

Tax = tax base × rate.

Example. A company has annual revenue of UZS 1,200,000,000 excluding indirect taxes and other income of UZS 50,000,000. Its supported current expenses are UZS 720,000,000, tax depreciation is UZS 24,000,000, and a carried-forward loss is UZS 100,000,000. The base is 1,250,000,000 − 720,000,000 − 24,000,000 − 100,000,000 = UZS 406,000,000. At a 15% rate, the tax is UZS 60,900,000.

This demonstrates the mechanics, not a ready-made line in the return: every receipt and expense must first be classified, separate accounting applied and special adjustments checked.

What income enters the tax base

A resident includes income from Uzbekistan and abroad. Income is recognized in every form and supported by primary, other or electronic documents; the same receipt cannot be counted twice. Aggregate income (Art. 297 of the Tax Code) includes, among other items, sales revenue, interest, rent, royalties, assets and services received free of charge, positive exchange differences, dividends, contractual amounts received from counterparties, restored reserves and other income.

On a disposal of property, the financial result is calculated under the disposal rules (Art. 298 of the Tax Code). Property and services received free of charge are generally measured at market value (Art. 299 of the Tax Code). Reimbursement of a previously deducted expense or loss is included in income in the reimbursement period (Art. 301 of the Tax Code).

A positive exchange difference is income and a negative difference is an expense. An exchange difference on an advance for goods or services is disregarded (Art. 320 of the Tax Code).

The complete list of excluded receipts (Art. 304 of the Tax Code) covers:

• contributions to charter capital and the excess issue price over nominal value;
• a return of a participant’s contribution within its original amount;
• funds pooled for a simple partnership and the return of a partner’s contribution;
• advances for future goods and services;
• specified receipts of apartment-building managers and Mahalla Service companies;
• a pledge or deposit until ownership passes;
• assets and services provided free of charge under decisions of the President or Cabinet of Ministers or an international treaty;
• grants, humanitarian aid and targeted receipts when the conditions are met;
• insurance compensation;
• property held by a commission agent or attorney and expenses reimbursed under the contract;
• repayment of the principal value of a finance-lease asset;
• property received under an ordinary lease;
• technical equipment for operational-search measures in telecommunication networks;
• property contributed as an investment obligation;
• loans, credits and their repayment;
• property under a concession agreement;
• property transferred to a state institution by a decision of an executive authority;
• income on Uzbekistan government securities and international bonds specified by the Code;
• cancelled tax penalty interest and fines;
• income from green-energy certificates;
• a bankrupt debtor’s proceeds directed to repayment of debt;
• income from REPO transactions.

Which expenses reduce corporate income tax

An expense is deductible when it is commercially justified, supported by documents and meets at least one test: it was incurred for income-producing activity; it is necessary to maintain or develop the business and the connection is substantiated; or it follows directly from legislation. Evidence may consist of documents made under Uzbekistan law, the rules of the country where the expense arose, or other records such as a business-trip order, tickets and a service report.

An expense is recognized only once. If it forms the cost of a fixed asset or inventory, the deduction arises through depreciation or cost of sales. Value added tax that has been or should be credited is generally not included in expenses.

Interest is generally deducted at the actual rate. The interest limitation (Art. 310 of the Tax Code) applies to controlled debt when debt exceeds equity by more than three times, or by more than thirteen times for banks and companies engaged solely in leasing.

Which expenses do not reduce tax

The Code establishes 36 categories (Art. 317 of the Tax Code). The complete list includes:

1. losses of inventory above natural-loss norms;
2. premises and utilities supplied free of charge to catering organizations and other persons;
3. expenses giving employees a material benefit, except the specified exception for cultural events;
4. field allowances and personal-car compensation above the limits;
5. pension supplements;
6. material assistance specified by the Code;
7. charitable assistance, other than the listed exceptions;
8. compensation for pollution and waste above the limits;
9. losses from defects and damage not recovered from the responsible supplier;
10. theft and shortages where no responsible person is identified or recovery is impossible;
11. taxes paid for other persons;
12. taxes and levies reassessed after an audit;
13. non-business health, sporting, cultural and other events unless required by law;
14. assistance to trade-union committees;
15. services unrelated to production;
16. expenses related to income excluded from taxation, unless the Code permits otherwise;
17. expenses under sham or simulated transactions established by a final court decision;
18. expenses unrelated to income-producing activity unless required by law;
19. fines, penalty interest and other sanctions payable to the budget;
20. capital expenses forming the cost of a depreciable asset;
21. the initial cost of non-depreciable property;
22. amounts above statutory deduction limits;
23. reserves not provided for by the Code or legislation;
24. accrued dividends;
25. voluntary insurance paid for other persons;
26. excess interest and expenses on controlled debt;
27. the value of assets or services transferred free of charge and related expenses, except for stated exceptions;
28. expenses of the settlor of a trust when it is not the beneficiary;
29. dues to non-profit and international organizations, except where mandatory or necessary for the activity;
30. expenses funded from a reserve previously deducted;
31. write-downs and impairment of assets;
32. a simple partnership’s loss on return of a contribution or division of property;
33. funds transferred within a consolidated group for payment of tax;
34. write-off of obsolete or expired inventory, except in emergencies;
35. interest on overdue or deferred loans above the current contractual rate;
36. contractual fines, penalty interest and other sanctions.

The name of an expense does not decide its treatment. For example, a repair may be deducted immediately, while modernization increases the cost of an asset; a voluntary payment to an employee and a payment required by law have different tax results.

Depreciation, investment deduction and losses

For tax purposes, a fixed asset is generally a company-owned asset costing more than UZS 22.000.000 (Art. 306 of the Tax Code), equal to 50 base calculation units (BRV) on the recognition date, and used for more than 12 months. A lower cost threshold may be set in the tax accounting policy. Depreciation is calculated using the straight-line method, separately for each asset and monthly.

A company may use lower rates. Example. For equipment costing UZS 120,000,000 at a 20% rate, annual depreciation is UZS 24,000,000 and monthly depreciation is UZS 2,000,000.

A documented exclusive right used for more than 12 months is an intangible asset. If its useful life cannot be determined, a five-year period (Art. 307 of the Tax Code) applies.

The investment deduction is 20% or 10% (Art. 308 of the Tax Code): 20% for new technological equipment, specified modernization and domestically produced software in an investment project; 10% for expansion of production and reconstruction of production buildings. Example. For qualifying equipment costing UZS 120,000,000, the deduction is UZS 24,000,000 in addition to ordinary depreciation; a disposal within three years may require an adjustment.

Repair costs for a depreciable asset are recognized at their actual amount (Art. 309 of the Tax Code) in the period incurred if the lessor does not reimburse them. A loss may be carried forward (Art. 333 of the Tax Code) in full or in part; the earliest loss is used first.

Corporate income tax for non-residents

Where a non-resident operates through a permanent establishment, its income includes receipts and property connected with the establishment. Net profit after tax is treated as a dividend for the purposes of this chapter. Establishment income (Art. 347 of the Tax Code) is determined under special rules.

A permanent establishment deducts directly connected expenses regardless of where they arise. However, payments to head office for royalties, services and loan interest are generally not deductible (Art. 348 of the Tax Code); administrative expenses are allocated if the applicable international treaty permits it.

For a non-resident without a permanent establishment, the payer withholds tax without an expense deduction. The income list (Art. 351 of the Tax Code) includes, among other items, dividends, interest, royalties, income from property, rent, international transport, telecommunications, services and contractual sanctions. This is a practical selection; classification depends on the particular contract.

These withholding rates (Art. 353 of the Tax Code) apply separately to each payment. Example. If a foreign company without a permanent establishment receives UZS 100,000,000 for a service classified as “other income,” the domestic tax is 100,000,000 × 20% = UZS 20,000,000 before an international treaty is applied.

An international treaty may grant an exemption or lower rate to a resident that is the beneficial owner; the base is determined for each payment (Art. 354 of the Tax Code). A residence document must be provided by the payment date, and the beneficial ownership (Art. 357 of the Tax Code) test applies to dividends, interest and royalties. An original, a properly certified copy or a printout of an official electronic document (Art. 358 of the Tax Code) is accepted.

The withholding return is filed by the 20th (Art. 355 of the Tax Code) of the following month. A non-bank tax agent generally remits the amount no later than the day after payment; a special deadline applies to banks.

Foreign tax on income included in the Uzbekistan base may be credited if supported, but only up to the Uzbekistan tax on that income. A foreign-language document is translated into the state language; the ability to credit foreign tax (Art. 342 of the Tax Code) is limited by these conditions.

A permanent establishment changes the tax object, deductions, return and payment method. The article on a permanent establishment explains the presence and registration tests. It should be considered before selecting a non-resident’s calculation method.

Returns, advance payments and payment

The tax period is the calendar year (Art. 338 of the Tax Code), and the reporting period is a quarter. The return and tax are calculated cumulatively.

Tax is paid by the return deadline (Art. 340 of the Tax Code). Monthly advances are required when adjusted aggregate income for the preceding year exceeded UZS 20,000,000,000. Example. If the first-quarter tax is UZS 90,000,000, each monthly advance for the second quarter is 90,000,000 ÷ 3 = UZS 30,000,000.

If a company crosses the threshold during the current year, advances begin after the full quarter in which the threshold was crossed. By the 15th of the first month of the following quarter, it may submit a statement of expected profit so the tax authority can recalculate the advances.

Tax records, documents and correction of errors

Tax records are based on accounting and primary documents (Art. 76 of the Tax Code), but the Tax Code rules prevail for tax purposes. Records are kept in national currency using the accrual method (Art. 78 of the Tax Code), unless a special provision says otherwise.

The tax accounting policy must define registers, responsible persons, inventory-valuation and depreciation methods, and separate accounting (Art. 77 of the Tax Code). If income is taxed under different rules, direct expenses are assigned to the relevant category and common expenses are allocated using a selected and documented method under the accounting rules (Art. 80 of the Tax Code).

Legal entities file returns electronically (Art. 82 of the Tax Code). Documents are retained for the limitation period, while returns and supporting records are retained for at least three years (Art. 84 of the Tax Code) after the filing year ends. Documents for a conditional relief are retained for at least three years after the condition ends. The general retention obligation (Art. 79 of the Tax Code) applies to tax records as a whole.

If an error understated tax, an amended return must be filed. Relief from liability may apply when the company corrects the error before the tax authority detects it or sends a notice and first pays the shortfall and penalty interest; the conditions are set for an amended return (Art. 83 of the Tax Code).

Fines and liability

Late payment generates penalty interest for each calendar day. The amount is 1/300 of the rate (Art. 110 of the Tax Code) of the Central Bank refinancing rate applied to the arrears. Example. For arrears of UZS 100,000,000, a 10-day delay and the applicable rate R, penalty interest is 100,000,000 × R × 10 ÷ 300, where R is expressed as a decimal; the rate applicable on the relevant days is used.

Non-payment resulting from an incorrect calculation or another unlawful act generally leads to a 20% fine (Art. 224 of the Tax Code) on the unpaid amount if no special offense applies. Concealment or understatement of the base carries a fine of 20% of the base (Art. 223 of the Tax Code), in addition to calculation of the tax itself.

The general limitation period for liability is three years (Art. 217 of the Tax Code). A mitigating circumstance reduces a sanction by at least half; admission and voluntary payment within ten days also permit a half-size sanction (Art. 218 of the Tax Code), while an aggravating circumstance doubles it.

Under the Code of Administrative Liability (CAO), a late return may expose an officer of an ordinary organization to a fine of UZS 4.400.000 (Art. 175 CAO), equal to 10 BRV; for an officer of a micro or small enterprise the fine is UZS 1.320.000, equal to 3 BRV. If returns for several taxes are not filed in the same month, one fine applies.

What changed in 2025–2026

• Decree UP-138 of 19 August 2025 raised the income threshold for monthly advances from UZS 10,000,000,000 to UZS 20,000,000,000. The current Article 340 uses the new threshold.
• Decree UP-74 of 5 May 2026 allowed deductions, from 1 July 2026 through 1 July 2029, for voluntary medical-insurance contributions of up to UZS 10,000,000 a year for every employee and each member of the employee’s family.
• Decree UP-103 of 2 June 2026 introduced a corporate income tax exemption from 1 September 2026 through 1 January 2036 for the listed cultural-sector entities. During that period, income of foreign companies from creating film products in Uzbekistan is excluded from the withholding tax base.

What to check before filing the return

Check five matters: all taxpayers and permanent establishments have been identified; Uzbekistan and foreign income is complete; each deduction has a business link and documents; transactions with another rate or special calculation are recorded separately; and losses and advances are correctly reflected. Then reconcile the annual tax register to the accounting records and electronic return.

Review large one-off transactions separately: a shareholder contribution, a free receipt, a loan, an asset sale, a non-resident payment and dividends. Misclassification of these items most often changes income, a deduction, the rate or a tax agent’s obligation.

Frequently asked questions

What is corporate income tax in simple terms?

It is a tax on taxable profit, not simply money received in a bank account. For a resident legal entity, profit is aggregate income minus permitted expenses. Receipts that the Code does not treat as income are removed, special adjustments are made and carried-forward losses are considered. The resulting base is then multiplied by the rate, usually 15%.

Which expenses reduce corporate income tax?

The base is reduced by commercially justified and documented expenses connected with income-producing activity, maintaining or developing the business, or a statutory obligation. A payment record alone is not enough: the contract, invoice or acceptance act, content of the service, business purpose and connection with income matter. Capital expenditure is generally deducted through depreciation, and Article 317 separately lists non-deductible expenses.

Can a loss be carried forward to the next year?

Yes. A loss determined for a tax year may be used in full or in part to reduce profit in future years. Where there is more than one loss, the earliest is used first. Special restrictions apply to particular transactions, so the carryforward should be supported by the annual return, tax registers and documents showing how each loss arose.

When is the return filed and the tax paid?

The quarterly return is filed by the 20th of the month following the reporting period, and the annual return by 1 March of the following year. Tax is paid by the deadline for the relevant return. Companies above the income threshold pay monthly advances by the 23rd. If a deadline falls in a special calendar situation, the general rules for computing tax deadlines apply.

How is an international treaty applied to a non-resident payment?

First determine the type of income and whether a permanent establishment exists. For an exemption or lower rate, the recipient must be a resident of the treaty state and, where required, the beneficial owner. The residence document is provided by the payment date. Without proper evidence, the tax agent applies domestic rules, and a refund or credit is handled under the prescribed procedure.