Frequently asked questions of IT Park residents

This guide brings together the most frequently asked questions from accountants and executives of IT Park resident companies. It contains answers to the most popular questions regarding taxation, reporting, the application of benefits, and operational activities.

Taxes and Benefits

1. What are the main tax benefits provided to IT Park residents?

IT Park residents enjoy the following tax benefits:

• Residents are exempt from all taxes related to their core activities, including social tax, profit tax / turnover tax, and value-added tax (VAT).
• Income received by residents' employees under employment contracts is subject to personal income tax (PIT) at a rate of 7.5%.
• Income of foreign founders in the form of dividends is taxed at a rate of 5% (subject to certain conditions).
• Information technology services purchased by a resident from foreign entities are exempt from VAT in Uzbekistan.
• Residents are exempt from customs payments for imported equipment for their own needs.

For more information on the benefits for IT Park residents and the conditions for their application, see our article on IT Park residents.

2. From what moment do the benefits for a new resident take effect?

The benefits apply from the 1st day of the month following the month in which the resident status was obtained and the IT Park residency certificate was issued.

3. How to notify the tax authorities about obtaining resident status and applying for benefits?

You must submit an application through your personal account on the my3.soliq.uz website in the "Services" – "Application of legal entities for tax benefits" section. You need to attach a scanned copy of the IT Park resident certificate to the application. The application is submitted once and remains valid for subsequent years.

The application is submitted for those taxes that the resident pays, except for personal income tax (PIT) and social tax (for these taxes, the benefit is indicated manually in the tax reports).

Example of filling out the application:

Question	Answer
Type of regulatory document	Decree of the President of the Republic of Uzbekistan
Regulatory document number	UP 5099/5
Type of tax	- select the required tax -
Benefit start date	- specify the first day of the month the benefit is effective -
Benefit end date	31.12.2027

4. What is the tax rate on dividends paid to foreign founders?

Dividends paid to foreign founders are generally taxed at a rate of 10%. If the resident company's export volume exceeds 50% of its total revenue, foreign founders may pay tax on dividends at a rate of 5%.

5. Is a positive foreign exchange difference taxable?

A positive foreign exchange difference related to the resident's core activities under the approved business plan is exempt from profit tax / turnover tax. However, a 1% deduction to IT Park must be paid from this amount.

6. What income of a resident is subject to taxes?

Income not related to the activities approved in the resident's business plan is taxed in the standard manner (VAT, profit tax / turnover tax). For example, income from rent, sale of fixed assets, interest on loans, and gratuitous financial aid. At the same time, a 1% deduction to IT Park is also paid from this income.

7. What are the tax consequences of selling fixed assets (e.g., a car)?

The sale of fixed assets does not fall under the preferential activity. Such a transaction is subject to all relevant taxes (VAT, profit tax / turnover tax) in the standard manner. A 1% deduction to IT Park is also paid from the income from the disposal of fixed assets.

8. Is an IT Park resident entitled to an offset for input VAT (e.g., when purchasing fixed assets)?

No, they are not. Since the resident's core activity is exempt from VAT, the input VAT on goods and services used in this activity is not subject to offset and is included in their acquisition cost.

Reporting

9. How to correctly fill out the tax report for PIT and social tax to apply the benefits?

The report on personal income tax (PIT) and social tax is filled out on my.soliq.uz as usual, with the following specifics. Please note that wages paid to employees before the date of obtaining residency are not included in the preferential amounts in the report.

• The rates for PIT and social tax are indicated as 12% (as the tax system does not accept 7.5%). The tax amount is reduced by specifying the preferential amount in Appendices 1 and 2 of the report.
• First, fill out Appendix 2 (breakdown of personal income exempt from taxation). In line 0501, select the benefit under Presidential Decree UP-5099 (code 103847), specify the number of all employees under an employment contract during the residency period, and the preferential amount (37.5% of their salary).
• Next, fill out Appendix 1 (types of payments on which social tax is not charged). In line 0301, select the benefit under Presidential Decree UP-5099 (code 102391) and specify the preferential amount (the entire salary amount of employees during the residency period).
• In the attached file (registry), in column 15, you must manually enter the benefit code 103847 for each employee under an employment contract.

10. What are the main reports and deadlines for residents to submit to IT Park?

Residents are required to submit the following reports through the my.it-park.uz portal:

• Monthly report on total revenue: by the 7th of the month following the reporting month. This report is preliminary and is used to issue an e-invoice for the 1% deduction to IT Park.
• Quarterly activity report: by the 15th of the month following the reporting quarter. Failure to submit this report is grounds for revocation of resident status.
• Special-purpose audit report: annually, by July 1 of the year following the reporting year, according to the form recommended by the IT Park administration. Failure to submit the audit report is grounds for revocation of resident status.

11. How to recall a mistakenly submitted report to IT Park for revision?

To recall a monthly or quarterly report, click the "Recall Report" button in your personal account on the my.it-park.uz portal. The system will process your request and return the report for resubmission after some time.

12. How to fill out the quarterly report for IT Park? On a cumulative basis or only for the quarter?

The quarterly report for IT Park is filled out only for the reporting quarter, not on a cumulative basis. If you became a resident in the middle of a quarter, the data is entered starting from the month in which the IT Park benefits apply. When filling out the report, monetary values are indicated in thousands of UZS. Income in foreign currency other than US dollars is converted into US dollars at the exchange rate of the Central Bank of Uzbekistan on the date the income is received.

13. Is it necessary to submit nil reports if there was no income in the reporting period?

Yes, if there was no income in the reporting period, you must submit reports with zero values within the established deadlines. The absence of deductions (and income) is allowed for no more than 6 consecutive months; otherwise, it may become grounds for revocation of resident status.

14. Is it necessary to submit the "Report on the Use of Funds Freed Up as a Result of Benefits" to the tax authorities?

No, it is not necessary. This report is submitted for targeted tax benefits. The benefits for IT Park residents are not targeted.

15. Is it necessary to submit statistical reports, for example, 4-K (MIZ)?

Yes, it is. IT Park residents are not exempt from submitting statistical reports. The list of required statistical reports can be checked by the company's TIN on the stat.uz website in the "Interactive Services" – "List of submitted reports" section.

Core Activities

16. Is it necessary to maintain separate accounting for income and expenses?

Yes. If a company receives income both from activities within its residency and other income permitted for residents (e.g., income from leasing property, interest on loans), it is necessary to maintain separate accounting. Other income is taxed in the standard manner.

17. Can an IT Park resident engage in additional, unauthorized activities?

No. Engaging in activities not included in the approved list and not specified in the business plan is a violation and will result in the revocation of resident status with the repayment of all tax benefits provided.

18. How to correctly issue an electronic invoice? With or without VAT?

• On the domestic market: The e-invoice is issued with the note "Without VAT" and indicating the benefit under Presidential Decree UP-5099.
• For export of services (for VAT payers): A one-sided e-invoice is issued. In the VAT column, select "Without VAT". The "Benefit" checkbox should not be ticked.
• For export of services (for turnover taxpayers): A one-sided e-invoice is issued with the note "Without VAT" and indicating the benefit under Presidential Decree UP-5099.

To correctly reflect the benefit in e-invoices, you must submit an application through your personal account on the my3.soliq.uz website (see the relevant question).

19. What IKPU code should I use for our services?

You need to select the most appropriate code from the classifier at tasnif.soliq.uz, focusing on the list of services approved by PCM No. 447. IT Park has provided a recommended list of IKPU codes for use, which can be requested from IT Park representatives. Using other codes may lead to additional questions and critical scrutiny from the tax authorities.

20. What should I do if I receive a notification from the tax office about the incorrect use of an IKPU code or incorrect application of benefits?

This situation has occurred with many IT Park residents in the past. You should carefully study the tax office's request. If your activities were conducted within the framework of your business plan and you used appropriate IKPU codes, it is recommended to prepare a response letter to the tax authority with supporting documents attached. You can contact IT Park representatives for advice and assistance.

21. What happens if the company's turnover exceeds 1 billion UZS?

The company is required to switch from turnover tax to paying VAT and profit tax. However, the IT Park resident's benefits for these taxes are retained. You need to obtain a VAT payer certificate and submit new applications for VAT and profit tax benefits on my3.soliq.uz.

HR and Payroll

22. What taxes apply to payments to individuals under a civil law contract (CLC)?

Only PIT at a rate of 12% is withheld from payments to individuals under a civil law contract (CLC). The 7.5% benefit does not apply to CLCs. Social tax is not charged on payments under CLCs.

23. What taxes are withheld from sick pay and vacation pay?

• Vacation pay is income in the form of remuneration for labor, and all resident benefits apply to it (PIT at 7.5%, social tax at 0%).
• Sick pay (temporary disability benefit) is not income in the form of remuneration for labor, so PIT is withheld at a rate of 12%. Social tax is not charged.

24. Is the employment record preserved for employees if the resident employer does not pay social tax for them?

Yes, it is preserved. In accordance with the legislation, periods of work at an IT Park resident company, for which social tax was not paid due to the provided benefit, are included in the employment record.

25. Do other benefits apply to employees of IT Park residents, for example, PIT deductions for tuition fees or kindergarten payments?

Yes, they do. The 7.5% PIT benefit does not cancel other benefits provided by the tax legislation for individuals.

26. Is it necessary to obtain a work permit for foreign specialists?

No, IT Park residents have the right to hire foreign specialists without obtaining a permit for employment in Uzbekistan.

27. Is it possible to pay salaries or dividends in foreign currency?

Yes, it is possible. Only to foreign founders and specialists (non-citizens of Uzbekistan) and only within the limits of foreign currency receipts from the export of services. Payment is made to their international payment cards.

28. What taxes are withheld from the salary of a foreign employee working under an employment contract?

The same as for residents of Uzbekistan: PIT at a rate of 7.5%. Participation in the INPS (Individual Funded Pension System) is voluntary for foreigners (not mandatory).

29. Is it necessary to obtain a PINFL for foreign specialists working remotely?

Yes, it is. A PINFL (Personal Identification Number of an Individual) is required to reflect their income in the PIT tax reports. It can be obtained through a notarized power of attorney, without the personal presence of the foreign individual.

30. Do the benefits apply to technical and support staff (cleaner, maintenance worker)?

Yes, the benefits for PIT (7.5%) and social tax (0%) apply to all employees with whom an employment contract has been concluded, regardless of their position.

31. Can salaries be paid to employees once a month upon their request?

According to the Labor Code of Uzbekistan, wages must be paid at least once every half-month.

32. Is Compulsory Employer's Civil Liability Insurance (OSGOR) mandatory for residents?

Yes, this requirement is mandatory for all employers in Uzbekistan, including IT Park residents.

33. Is it possible to work with self-employed individuals? What taxes are withheld?

Yes, it is possible. If you conclude a contract with an officially registered self-employed individual, you are not their tax agent. They pay taxes independently. You require an act of work performed and a certificate of self-employed status from them.

Administrative Questions

34. On what amount is the 1% deduction to IT Park paid and when?

Deductions are paid on the company's total revenue, which is determined in accordance with Article 297 of the Tax Code of Uzbekistan. This includes not only income from the sale of IT services but also other income (e.g., positive foreign exchange differences, interest on deposits, gratuitously received funds, etc.).

Deductions to IT Park for the reporting month are paid independently by the 20th of the month following the reporting month.

35. Where can I find the payment details for the 1% deduction to IT Park?

The details are specified in the Public Offer, which is available for download in the personal account on the my.it-park.uz portal in the "Documents" section. The payment purpose code is 00668.

36. We have changed our director / legal address. Do we need to notify IT Park?

No, you do not need to notify them specifically. This data is automatically updated in the IT Park system from the state database of legal entities.

37. How to get a reconciliation statement for deductions to IT Park?

You need to write a request to the IT Park representatives in the group chat on Telegram, specifying the organization's TIN and the required period.

38. Is it possible to get a "virtual office" service and what are the conditions?

Yes, it is possible. The application is submitted through the resident's personal account on my.it-park.uz. The main condition is that the company director must be a citizen of the Republic of Uzbekistan.

39. How to add a new accountant to the group Telegram chat?

Only IT Park representatives can add participants. You need to send them the full name, phone number of the employee, and the TIN / company name. As a rule, only one representative from a company can be in the group.

Export and Import

40. Is the import of IT services by IT Park residents subject to value-added tax (VAT)?

No, it is not. The import by an IT Park resident of services included in the list of IT services approved by PCM No. 447 is exempt from VAT.

41. Is non-resident (foreign entity) income tax withheld upon the import of services?

It depends on the type of service and the country of the counterparty (service provider). If the place of supply of the service is recognized as Uzbekistan, it is necessary to check for a Double Taxation Agreement (DTA). If a DTA exists and the counterparty has a residency certificate, the tax is not withheld or is withheld at a reduced rate. If there is no DTA, the tax is withheld at the rate provided by the Tax Code of Uzbekistan (the standard rate is 20%).

42. Is it necessary to register export contracts and acts in the EEISVO?

Yes. Contracts for the export of services, as well as the acts of work performed under them, must be registered in the Unified Electronic Information System of Foreign Trade Operations (EEISVO) of Uzbekistan. Services up to 5,000 US dollars can be formalized as an invoice.

Corporate Card

43. Can I pay for advertising on Google, Facebook, or other foreign platforms with a corporate foreign currency card? Are there any limits?

Yes, payment for promotion (advertising) services on social networks and other foreign platforms with corporate foreign currency cards is permitted based on PCM No. 207. This resolution sets a limit for such operations of up to 5,000 US dollars per month.

44. Our company pays for digital services from a foreign company (e.g., OpenAI from the USA) with a corporate card. What are the tax obligations regarding VAT and non-resident income tax?

Regardless of whether the services of a foreign company are paid for with a corporate card or by bank transfer, the rules for importing services are the same.

VAT – The import of IT services (per the approved list) is exempt from VAT for IT Park residents. Regardless of whether VAT is included in the invoice or not, as a tax agent, you are required to submit to the tax authorities the "Calculation of value-added tax on purchased goods (services) from foreign persons." In this report, you specify the amount of imported services and apply the benefit under Presidential Decree PP-357, as a result of which the amount of VAT payable to the budget will be zero.

Non-resident income tax – When paying for services from a foreign company, you need to check if there is a Double Taxation Agreement (DTA) with the supplier's country. If services are imported from a country without a DTA (e.g., the USA), the IT Park resident has an obligation to withhold and pay tax at the source of payment according to the Tax Code of Uzbekistan. For most IT services, which can be classified as "royalties" or "technical services," the tax rate is 20% of the payment amount. If there is a DTA with the supplier's country, an exemption from tax or payment of tax at reduced rates may apply according to the content of the DTA. In any case, you need to submit to the tax authorities the "Calculation of corporate profit tax on income of non-residents, withheld by a tax agent at the source of payment."

Audit Report

45. Is it necessary to submit an audit report if the company became a resident at the end of the calendar year?

The requirement to submit an audit report applies to companies that received the right to apply tax benefits before December 31 of the reporting year. If your company was included in the unified register of IT Park residents in December, you can apply tax benefits from January 1 of the following year.

46. Where can I find the audit report template for IT Park?

The template is available for download in the resident's personal account on the my.it-park.uz portal in the "Reporting" – "Audit Reports" section.

47. What to do if an error is found in the audit report after submission?

To recall the audit report, click the "Recall Report" button in your personal account on the my.it-park.uz portal.