Turnover tax

Turnover tax is a special tax regime in Uzbekistan. Business entities on turnover tax regime do not pay corporate income tax (CIT) and value added tax (VAT).

See our articles on corporate income tax and value added tax.

Turnover tax is paid from total revenue. Total revenue includes income receviable in any form (monetary, assets, claim rights) and from any activity.

Certain types of receivables shall not be taxed, such as funds received from shareholders as contribution to charter capital.

Taxpayers of turnover tax

Turnover tax is paid by:

• resident companies whose annual revenue does not exceed 1 billion Uzbek soums
• individual entrepreneurs whose annual revenue exceeds 100 million Uzbek soums, but not more than 1 billion Uzbek soums

Entrepreneurs whose income from the sale of goods or services in a calendar year has exceeded 1 billion Uzbek soums are required to switch to corporate income tax and VAT.

Turnover tax does not apply to the following business entities:

• foreign companies receiving income from Uzbekistan
• entities that voluntarily switched to corporate income tax and VAT
• entities importing goods into Uzbekistan
• stationary retail outlets for the sale of alcoholic beverages, including beer
• entities producing excise goods or services
• agricultural producers having irrigated agricultural lands with an area of 25 hectares or more
• owners of empty buildings, non-residential structures and unfinished construction objects
• audit organizations and tax consultant organizations

Turnover tax rates

The standard rate of turnover tax is 4%.

Tax incentives or increased tax rates apply for certain categories of business entities. See our article on tax incentives.

Taxpayers may choose to pay turnover tax in fixed amounts. The tax rate for taxpayers paying turnover tax in fixed amounts is set as follows:

• 25 million Uzbek soums per year for taxpayers with annual revenue not exceeding 500 million Uzbek soums
• 34 million Uzbek soums per year for taxpayers with annual revenue ranging from 500 million Uzbek soums to 1 billion Uzbek soums

Taxpayers paying turnover tax in fixed amounts are exempt from the obligation to file turnover tax reports.

Tax reports and tax payments

Tax reports on turnover tax is filed monthly no later than the 15th day of the month following the reporting month, and annually no later than February 15 of the following year.

The payment due dates of turnover tax are the same as the reporting due dates.

Taxpayers paying turnover tax in fixed amounts are exempt from the obligation to file turnover tax reports.