Property tax

Resident and non-resident entities owning immovable property in Uzbekistan pay property tax.

For taxation purposes, taxable immovable property includes:

• buildings and facilities
• unfinished (delayed) construction objects, the construction of which has not been completed within the timeframe established by the design and estimate documentation, or within 24 months after obtaining construction permit (when the completion timeframe was not defined)
• residential real estate properties held by construction organizations and developers that were not sold within 6 months after construction commissioning
• railways, main pipelines, communication lines and power transmission lines

If a company acquires real estate on financial lease, the company will also be subject to property tax.

Fully depreciated immovable property is also taxed with property tax based on its market value.

Calculation of property tax

Property tax is calculated based on the average annual residual value of immovable property (original cost of property less the depreciation) in accordance with the balance sheet data.

There are minimal residual values per each square meter of buildings and facilities varying depending on the region of location.

The standard annual tax rate of property tax is 1.5%, for unfinished (delayed) constructions the tax rate is set at 3%.

The tax rate is set at 0.6% for:

• public railways, main pipelines, communication lines and power transmission lines
• immovable property and unfinished construction objects mothballed by the government

Tax reporting and tax payments

Throughout a year, business entities pay advance payments on property tax in the following order:

• taxpayers under turnover tax regime - no later than the 20th day of the third month of each quarter in the amount of one quarter of the annual tax
• other taxpayers - no later than the 10th day of each month in the amount of one twelfth of the annual tax

To calculate the amount of advance payments for current year, a taxpayer must submit the forecast of the annual tax to tax authorities by January 20. A taxpayer who has acquired immovable property during the year shall submit the forecast no later than 30 days from the date of acquisition of the property.

Tax reports for property tax shall be submitted no later than March 1 for the preceding year.

A foreign company owning property in Uzbekistan (not related to permanent establishment) pays property tax once a year no later than February 15 for the preceding year.

Tax incentives

The tax base of property tax shall be reduced in relation to:

• cultural and artistic facilities, immovable property used for education, healthcare (except for health resort facilities located in tourist areas), physical education and sports
• immovable property on agricultural enterprises used for the production and storage of agricultural products, as well as for breeding silkworms
• new oil and gas wells for a period of 2 years starting from the month of their commissioning

The following taxpayers are exempt from property tax:

• renewable energy producers (solar, wind, etc.) in respect of renewable energy installations of at least 0.1MW capacity, for a period of 10 years from the date of commissioning of such installations
• antenna-mast metal structures located in rural areas (except for cities and regional centers)