PIT and social tax in Uzbekistan: rates and reporting

Personal income tax (PIT) is withheld from an employee's salary and other income at 12%, while the employer pays social tax on top of the salary from its own funds at 12%. The employer calculates and remits both taxes as a tax agent: the return and payment are due by the 15th of the following month. An individual reports income from which tax was not withheld by the employer in a return due by 1 April.

In brief:

• PIT is 12% on the salary of both residents and non-residents; dividends and interest are taxed at 5% for residents and 10% for non-residents (Arts. 381 and 382 of the Tax Code)
• Social tax is 12% of payroll costs and 25% for state-funded organisations; the employer pays it, and it is not withheld from salary (Arts. 405 and 407 of the Tax Code)
• From the PIT assessed, the employer transfers 0.1% of the employee's income to the employee's individual funded pension account; there are no separate insurance contributions withheld from salary
• Returns for both taxes are due monthly by the 15th, and the annual return by 15 February; payment is due no later than the applicable filing deadline
• PIT does not apply to financial assistance of up to 5.739.200 soums a year, gifts of up to 2.869.600 soums, an employee's medical treatment or education, the sale of a home held for more than 36 months, and around forty other types of income under Arts. 369 and 378 of the Tax Code
• A sole proprietor pays social tax of at least 440.000 soums a month; a self-employed person may voluntarily pay 440.000 soums a year to accrue pensionable service

Updated: 03 September 2026

What PIT is and who pays it

Personal income tax is the only tax paid by an employee in Uzbekistan, which is why it is commonly called income tax or salary tax. Its taxpayers are individuals, both residents and non-residents (Art. 364 of the Tax Code). A resident pays tax on income received both in Uzbekistan and abroad; a non-resident pays it only on income from sources in Uzbekistan (Art. 368 of the Tax Code).

Status depends not on citizenship but on time spent in the country: an individual is a resident if present in Uzbekistan for more than 183 days in any consecutive 12-month period beginning or ending in the tax year (Art. 30 of the Tax Code). A citizen of Uzbekistan who works abroad for a year becomes a non-resident; a foreign national with a long-term employment contract may obtain resident status early by applying to the tax authority.

The taxable object is an individual's aggregate income in cash and in kind, as well as income in the form of a benefit in kind (Arts. 365 and 366 of the Tax Code). Business income of a sole proprietor or self-employed person that is subject to turnover tax is not subject to PIT. Deductions from income under a court order, maintenance payments and other recoveries do not reduce the tax base.

PIT rates in 2026

The rate does not depend on the amount of income: Uzbekistan has had no progressive scale since 2019, when it was replaced by a flat rate of 12% (Decree No. UP-5468 of 29 June 2018). Since 1 May 2022, the same rate has applied to non-residents under employment and civil-law contracts (Law No. ZRU-785 of 26 July 2022); the former 20% rate for foreign employees no longer applies.

The difference between residents and non-residents is not the salary rate but access to reliefs: a non-resident's tax base is calculated without the exemptions and deductions under Arts. 369, 378 and 380 of the Tax Code (Art. 366). For a non-resident, the rate is applied separately to each payment; for a resident, tax is calculated cumulatively from the beginning of the year (Art. 388 of the Tax Code).

Income subject to PIT

The Tax Code divides aggregate income into four categories, each with its own withholding rules (Art. 370 of the Tax Code).

Employment income (Art. 371 of the Tax Code) covers all payments to an employee under an employment contract: salary, piecework pay, allowances, bonuses and year-end remuneration (Art. 372), compensation included in salary (Art. 373), and holiday pay and payment for other time not worked (Art. 374). The law treats payments to individuals under civil-law contracts for work or services, and remuneration of supervisory-board members, as employment income too. This matters for social tax because it is charged on the same base: engaging an individual under a civil-law contract saves neither PIT nor social tax.

Employment income also includes payments often thought of as reimbursement: the cost of meals and travel passes, subsistence allowances and compensation for use of a personal vehicle above the statutory limits, and allowances for hazardous conditions and night work (Art. 373 of the Tax Code). Compensation for unused leave on dismissal is payment for time not worked and is taxed as salary (Art. 374 of the Tax Code), while severance pay is other income (Art. 377 of the Tax Code) and is taxable as well.

Property income (Art. 375 of the Tax Code) includes interest, dividends, rental income, royalties and income from the sale of property. Income from a sale is the amount by which the sale price exceeds the documented acquisition cost; if there are no documents, the entire amount is treated as income, while for real estate it is the difference between the price and the cadastral value.

Income in the form of a benefit in kind (Art. 376 of the Tax Code) arises when a company pays an employee's education fees, nursery fees, utility bills, rent or holiday vouchers; transfers property free of charge; sells goods at a discount; forgives a debt; or pays the employee's tax from its own funds. Those costs are employee income from which 12% is withheld unless they fall within the exemptions described in the next section.

Other income (Art. 377 of the Tax Code) includes severance pay, financial assistance, winnings and prizes, grants, gifts from individuals, compensation for non-pecuniary harm and income from the sale of produce from a household plot.

Salary is treated as received on the last day of the month for which it is accrued, or on the last day of work in the case of dismissal; for other cash payments it is the payment date, and for income in kind it is the transfer date (Art. 367 of the Tax Code). Foreign-currency income is converted at the Central Bank exchange rate on the date it is received.

Income exempt from PIT

The exemptions are arranged in two lists. The first covers income excluded from aggregate income and therefore omitted from returns (Art. 369 of the Tax Code): state awards and prizes, compensation for blood donation, maintenance payments, insurance proceeds, scholarships, pensions and benefits other than temporary incapacity benefit, mandatory contributions to individual funded pension accounts and interest on them, and compensation for the withdrawal of land for public needs (from 19 July 2026, Law No. ZRU-1131 of 17 April 2026). It also covers employer expenses that are not treated as employee income: protective clothing, milk and therapeutic or preventive meals, employee transport to work, business-travel costs within the statutory limits, relocation to another locality, education under direct contracts with colleges and universities, professional development, emergency assistance within the amount of the loss, hospitality and festive-event expenses, and travel cards for business journeys.

The second list covers income that is not taxable (Art. 378 of the Tax Code). It contains around twenty-five items; those most commonly used by employers and individuals are set out below.

The sale of a car or apartment held for more than three years is exempt, whereas non-residential premises—an office, shop or garage outside a residential building—are always taxable, regardless of the holding period. From 1 January 2027, the 36 months for a home inherited from or gifted by a close relative will be counted from the date on which the former owner's title was registered (Resolution No. PP-265 of 15 July 2026).

Reliefs for particular categories of employee

Some employees pay PIT on less than their full income (Art. 380 of the Tax Code). A monthly deduction of 1.917.600 soums is available to war veterans and persons disabled as a result of war, Heroes, parents and widows of fallen servicemen, single mothers and widows with two or more children under 16, and one parent caring for a child with a lifelong disability. The deduction for persons with a lifelong disability and persons in disability groups I and II is higher, at 4.080.000 soums a month. An employee chooses one qualifying ground; the relief is applied at the principal place of work on the basis of a certificate or other evidence and also applies to dividends, interest and rental income. An employee who loses entitlement must notify the employer within 15 days. Since 1 July 2025, reliefs for persons with disabilities have been applied proactively, without an application (Decree No. UP-85 of 8 May 2025).

This section lists only the exemptions an employer applies when calculating salary. Sector-specific reliefs for companies, and the conditions attached to every item in Art. 378 of the Tax Code, are covered in the article on tax incentives, including the documents that prove education and medical costs and how to claim relief through a return if it was not applied at work.

How an employer withholds and pays PIT

A company, sole proprietor, permanent establishment or representative office of a foreign company is a tax agent (Art. 386 of the Tax Code). The agent assesses tax when income is accrued, withholds it from any funds paid to the employee and remits it to the budget. If tax is not withheld, the agent pays it from its own funds together with late-payment interest, and the amount paid for the employee becomes the employee's income in the form of a benefit in kind.

At the principal place of work, the procedure is as follows (Art. 388 of the Tax Code):

1. Tax is calculated each month, cumulatively from the beginning of the year as income accrues, taking account of reliefs under Arts. 378 and 380 of the Tax Code.
2. From the PIT assessed, the employer transfers 0.1% of taxable income to the employee's individual funded pension account with Xalq Bank (Resolution No. PP-4086 of 26 December 2018, para. 5); this is part of the tax, not an additional deduction (Art. 385 of the Tax Code). The employee register for the bank is prepared by the 15th of the following month (Cabinet Resolution No. 595 of 21 December 2004, para. 16).
3. An employee who changes principal place of work during the year gives the new employer a certificate of income and tax withheld by the former employer; without it and without a taxpayer identification number, tax is withheld with no reliefs.
4. Payments made to a former employee after termination are taxed without reliefs.
5. On request, the agent issues the employee a certificate of income and tax withheld (Art. 386 of the Tax Code); it is needed for the employee's return and for reliefs at a new place of work.

Reporting and payment (Arts. 389 and 390 of the Tax Code): the PIT and social-tax calculation is filed monthly by the 15th of the month following the reporting month, and the annual calculation by 15 February. Tax is remitted when the income is paid, but no later than the filing deadline; for payment in kind, it is remitted within five days after the end of the month. Companies with branches employing more than 25 people report for them at the branch's place of registration. A certificate listing individuals who received an untaxed benefit in kind is filed within 30 days after year-end.

Under Decree No. UP-138 of 19 August 2025, responsibility for preparing PIT and social-tax returns passed to the tax authorities on 1 January 2026: they prepare the calculation from accrual data, and the employer has five working days to make corrections and file the corrected return. The duty to check and confirm the figures remains with the employer.

The agent refunds over-withheld tax on the employee's written application, by bank transfer and within three months, during the same tax period (Art. 391 of the Tax Code); after year-end, the refund is obtained from the tax authority together with the return.

Salary calculations—base pay, allowances, average earnings for holiday pay, deductions under enforcement documents and payment deadlines—are covered in the article on pay. All PIT, social-tax and other filing dates are collected in the accountant's calendar.

Example: calculating taxes on salary

An employee's monthly salary is 5,000,000 soums, with no reliefs.

The employee receives 88% of the gross amount, while the employee costs the employer 112% of salary. There are no other mandatory deductions from salary: citizens' insurance contributions to the Pension Fund were abolished in 2019, and mandatory social insurance from 2026 is financed from a portion of PIT, not by a separate payment (Decree No. UP-206 of 3 November 2025).

If the same employee qualifies for a relief under Art. 380 of the Tax Code—for example, because the employee is in disability group II—4.080.000 soums is deducted from monthly income: the tax base is 920,000 soums, PIT is 110,400 soums and net pay is 4,889,600 soums. Social tax is charged on the full salary of 5,000,000 soums; PIT reliefs do not affect it.

Salary for a fully worked month may not be below the minimum wage—1.360.000 soums from 1 September 2026 (Decree No. UP-115 of 23 June 2026); bonuses and additional payments do not count towards that minimum (Art. 245 of the Labour Code). From 1 March 2026, paying below the minimum wage reduces a company's sustainability rating (Resolution No. PP-49 of 5 February 2026).

Aggregate annual income return

An employee with one place of work does not file a return: the employer has already reported for the employee. An aggregate annual income return is filed by residents who received income not taxed by a tax agent (Art. 393 of the Tax Code):

• income from renting out an apartment, vehicle or other property where tax was not withheld by a corporate tenant;
• income from abroad: salary from a foreign employer, a freelancer's income from foreign clients, and dividends and interest from foreign companies;
• income from persons who are not tax agents, such as other individuals under a civil-law contract;
• royalties for works of science, literature and art;
• a benefit in kind from a company with which the individual has no employment relationship, if tax was not withheld at the individual's request;
• gifts and financial assistance received away from the principal place of work: the tax authority recalculates the relief because the limits of 5.739.200 and 2.869.600 soums apply per year, not per employer;
• a foreign national who became a resident before 1 April of the current year, who must file regardless of the types of income received.

The filing deadline is 1 April of the year following the reporting year, and the return is filed with the tax authority for the individual's permanent place of residence (Art. 397 of the Tax Code). Tax under the return is due by 1 June (Art. 398 of the Tax Code); a resident may pay it in foreign currency from an overseas account. An error identified by the tax authority must be corrected within 10 days after notice (Art. 396 of the Tax Code). If no return is filed, the tax authority assesses tax from the information available and serves a payment notice.

Landlords follow a different procedure: a preliminary return is filed within five days after the end of the first rental month; tax is then paid monthly by the 15th of the following month, and the amount is reconciled to actual income at year-end. No preliminary return is needed if the tenancy agreement is registered with the tax authority. Tax is calculated not from any amount stated in the agreement but from no less than the minimum rental rates approved annually by the State Budget Law (for 2026, Law No. ZRU-1105 of 25 December 2025, Annex 8); regional Kengashes may increase them by a coefficient of up to 2.0. Since 2026, PIT on rent from real estate has been credited in full to the budget of the district where the property is located (Resolution No. PP-364 of 28 November 2025).

Tax paid abroad by a resident is credited through the return if supporting documents are available (Art. 399 of the Tax Code). A citizen of Uzbekistan who spent 183 days or more abroad may voluntarily file a return within one month after returning: foreign income for the period in which the person was not resident is not taxable.

PIT for foreign nationals and non-residents

A foreign employee pays PIT at the same 12% rate as a citizen, but until resident status is obtained, without exemptions or deductions (Art. 366 of the Tax Code). A non-resident's dividends and interest are taxed at 10%, and freight at 6% (Art. 382 of the Tax Code). Tax is withheld at source regardless of whether the income is paid in Uzbekistan or abroad (Art. 400 of the Tax Code).

Once a foreign national has spent more than 183 days in the country, the person becomes resident and may recalculate tax for the entire year and claim a refund by filing a return with evidence of status (Art. 391 of the Tax Code). If two countries claim the individual as resident, status is determined under the applicable international agreement by reference to the centre of vital interests: a family and home in Uzbekistan make the individual resident here (Art. 30 of the Tax Code).

A double tax treaty allows income to be paid to a non-resident without withholding or at a reduced rate if the recipient provides proof of tax residence in the other country (Arts. 6, 357, 358 and 400 of the Tax Code). If tax was nevertheless withheld, the non-resident claims a refund through the tax authority (Art. 401 of the Tax Code). Income of foreign personnel supplied by a foreign company under a staff-leasing contract is taxed by the Uzbek customer, and social tax is charged on a base of at least 90% of the contract costs (Arts. 403 and 404 of the Tax Code).

There are several specific exemptions: foreign teachers and specialists at non-state nurseries and schools pay no PIT until 1 January 2030, and their employers pay no social tax (Art. 483 of the Tax Code). A special tax regime for foreign nationals has applied since 1 January 2026: after payment of a fee of USD 50,000 and the opening of an account with an authorised bank, income from sources outside Uzbekistan is exempt from PIT, and a person who has a home in the country and is present here for more than 30 days is treated as resident (Decree No. UP-180 of 4 October 2025).

This section deals only with taxes on the income of a foreign employee. The article on work permits explains how to obtain the right to work, which category of specialist applies and when no permit is required. If the foreign company itself does business in Uzbekistan through personnel or an office, it incurs its own taxes; these are covered in the article on a permanent establishment.

Social tax: who pays it and on what

Social tax is paid by Uzbek legal entities, permanent establishments, representative offices and branches of foreign companies, as well as certain categories of individual, including sole proprietors (Art. 402 of the Tax Code). The taxable object is the employer's expenditure on employee remuneration (Art. 403 of the Tax Code), and the tax base is the amount of payments under Art. 371 of the Tax Code (Art. 404). Social tax therefore applies to everything treated as employment income for PIT: salary, bonuses, holiday pay, compensation for unused leave, remuneration under civil-law contracts with individuals, the cost of meals and travel passes, and subsistence allowances above the statutory limits.

Social tax does not apply to income in the other categories: dividends, rent, benefits in kind such as payment of an employee's education or medical treatment, and other income such as severance pay and financial assistance under Art. 377 of the Tax Code are outside the base. Nor does it apply to compensation for harm caused by an occupational injury above the prescribed amounts, payments to cotton pickers, or the salaries of Mahalla Service company employees engaged in improving mahallas (Art. 403 of the Tax Code).

The tax is paid at the employer's expense and is not withheld from salary (Art. 407 of the Tax Code). It is calculated monthly; the return is filed with the PIT calculation by the 15th of the following month and by 15 February for the year, and payment is due no later than the filing deadline. The tax period is the calendar year and the reporting period is the month (Art. 406 of the Tax Code).

Social-tax receipts fund pensions and benefits. A new state social insurance system took effect on 1 January 2026 (Decree No. UP-206 of 3 November 2025 and Law No. ZRU-1101 of 9 December 2025): maternity benefit from 2026 and temporary incapacity benefit from 1 July 2026 are awarded proactively through the State Social Insurance Fund, while periods for which social tax was paid before 2026 count towards the insurance record. Self-employed people, dehkan farmers and others with no employer may insure themselves voluntarily by paying 5% of the minimum wage a month.

Social-tax rates

The reduced rates under Art. 483 of the Tax Code apply only to the salaries of the specified employees or where the income-share condition is met, and the employer must keep separate records. From 1 January 2026 to 1 January 2028, industrial enterprises reduce the social-tax base by employee transport and meal costs—up to 440.000 soums a month per employee—if the employee's average salary is at least twice the minimum wage.

The full conditions for IT Park residents, including contributions to the Directorate and reporting social tax at a zero rate, are covered in the article on IT Park. Sector-specific rates and reliefs from other taxes are set out in the article on tax incentives.

Social tax for sole proprietors, the self-employed and other individuals

Individuals who have no employer pay social tax at a fixed amount so that pensionable service accrues to them. The amount is linked to the base calculation unit (440.000 soums) on the payment date (Art. 408 of the Tax Code).

Old-age pensioners and persons in disability groups I and II in this table pay at least 50% of the minimum amount, while members of Hunarmand who receive a pension are fully exempt. For employees of sole proprietors, the minimum was reduced from 1 January 2025 from 50% of the base calculation unit a month to one base calculation unit a year (Resolution No. PP-366 of 30 August 2022 and Law No. ZRU-1014 of 24 December 2024); the sole proprietor withholds PIT from their salary as a tax agent.

From 1 January 2026, a self-employed person or sole proprietor with turnover of up to 1 billion soums pays turnover tax at 1% on revenue (Resolution No. PP-247 of 12 August 2025 and Art. 467 of the Tax Code); fixed PIT for sole proprietors and the exemption for self-employed persons with income of up to 100 million soums have been abolished. Sole proprietors and self-employed persons pay PIT at 12%, rather than turnover tax, on income from letting property (Art. 465 of the Tax Code).

The tax regimes for the business activity itself, the thresholds and the transition to VAT are covered in the articles on sole proprietors and self-employment; this section deals only with the social tax they pay for themselves and their employees.

Consequences of non-compliance

A fine under the Tax Code is reduced by half where there is a mitigating circumstance, or where the offender admits liability and pays within 10 days after the decision (Art. 218 of the Tax Code). Undeclared workers are a separate enforcement priority: from 2026, the State Labour Inspectorate issues the employer a warning to remedy informal employment, and no administrative liability arises if an employment contract is formalised and salary is paid within one month (Resolution No. PP-49 of 5 February 2026). The Second Chance economic amnesty applies until 31 December 2026 (Decree No. PF-175 of 27 August 2026): late-payment interest is written off once arrears are paid in full, and a voluntarily corrected return can be filed without late-payment interest.

The article on tax evasion and tax audits explains how desk and field audits of payroll taxes are conducted, how to challenge additional assessments and when criminal liability arises.

What changed in 2025–2026

• From 1 January 2025, a sole-proprietor employer pays social tax of 440.000 soums a year for a hired employee instead of 50% of the base calculation unit a month (Law No. ZRU-1014 of 24 December 2024); salaries of Mahalla Service employees were exempted from PIT (Law No. ZRU-1071 of 26 June 2025).
• From 1 January 2026, Law No. ZRU-1108 of 25 December 2025 abolished fixed PIT for sole proprietors (Art. 383 of the Tax Code ceased to have effect) and the exemption for self-employed persons with income of up to 100 million soums; sole proprietors and self-employed persons pay turnover tax at 1% (Resolution No. PP-247 of 12 August 2025).
• From 1 January 2026, state social insurance funded from a portion of PIT was introduced; maternity benefit, and from 1 July 2026 temporary incapacity benefit, is paid by the Fund (Decree No. UP-206 of 3 November 2025, Law No. ZRU-1101 of 9 December 2025).
• From 1 January 2026, the tax authorities prepare PIT and social-tax returns, and the employer has five working days to make corrections (Decree No. UP-138 of 19 August 2025); PIT on rent from real estate is credited to the district budget where the property is located (Resolution No. PP-364 of 28 November 2025); and the special tax regime for foreign nationals, with a fee of USD 50,000, took effect (Decree No. UP-180 of 4 October 2025).
• From 17 April 2026, the exemption for non-state nursery and school fees of up to 3 million soums a month was extended to daytime care for children with disabilities (Law No. ZRU-1129 of 17 April 2026); from 19 July 2026, compensation for the withdrawal of a land plot is excluded from income (Law No. ZRU-1131 of 17 April 2026).
• From 1 September 2026, the minimum wage is 1.360.000 soums and the base calculation unit is 440.000 soums (Decree No. UP-115 of 23 June 2026); all minimum-wage-based relief limits and fixed social-tax amounts increased accordingly.
• From 27 August 2026, the Second Chance economic amnesty applies until 31 December 2026, writing off late-payment interest once arrears are paid and old fines for late filing (Decree No. PF-175 of 27 August 2026).
• From 1 January 2027, the holding period for a home inherited from or gifted by a close relative, for the purpose of the PIT exemption on sale, will be counted from the date on which the former owner's title was registered (Resolution No. PP-265 of 15 July 2026).

Frequently asked questions

What percentage of tax is withheld from salary in Uzbekistan?

Only PIT at 12% is withheld from salary; 0.1% of income within that 12% goes to the employee's funded pension account. The employer additionally pays social tax at 12% from its own funds, which does not affect net pay. On a salary of 10,000,000 soums, the employee receives 8,800,000 soums and the employer spends 11,200,000 soums. No pension or insurance contributions have been withheld from employee salary since 2019.

Who does not pay income tax in Uzbekistan?

Very few people have a complete status-based exemption: diplomats and employees of international organisations under Art. 379 of the Tax Code, foreign teachers at non-state schools until 2030, and people affected by the Chernobyl disaster and their spouses. Everyone else pays 12%, but not on every type of income: pensions, maintenance payments, scholarships, interest on deposits, the sale of a car or apartment held for more than 36 months, and inheritance from close relatives are exempt. Persons in disability groups I and II, war veterans and single mothers with two or more children pay tax after a deduction of 1.917.600 or 4.080.000 soums a month (Art. 380 of the Tax Code).

Is financial assistance subject to social tax?

It depends on the type. Financial assistance on the birth of a child, marriage, death of a family member, an occupational injury or for agricultural produce is other income under Art. 377 of the Tax Code: it is not subject to social tax, and no PIT is withheld up to 5.739.200 soums a year. Financial assistance for other reasons, such as a holiday allowance or a festive payment, is a payment of an incentive nature (Art. 372 of the Tax Code), meaning employment income, and is fully subject to both PIT and social tax. Emergency assistance within the amount of the loss is subject to neither tax (Art. 369 of the Tax Code).

Is PIT payable when an apartment is rented out?

Yes. If the tenant is a company, it withholds 12% on payment as a tax agent. If the tenant is an individual, the owner files a preliminary return within five days after the first rental month, pays 12% monthly by the 15th, and files an aggregate annual income return by 1 April. Tax is calculated on no less than the minimum rental rates in the annual budget law, even if the agreement states a lower amount. Since 2026, the tax has remained in the budget of the district where the apartment is located.

What if a foreign employee becomes resident during the year?

From the month in which the employee's stay exceeds 183 days, the employer applies reliefs as for a resident. The employee may recalculate and recover tax previously withheld without reliefs through an aggregate annual income return supported by evidence of status (Art. 391 of the Tax Code); a foreign national who is resident must file by 1 April (Art. 393 of the Tax Code). The 12% rate is the same for both statuses, so the recalculation concerns only exemptions and deductions, not the rate itself.

Are the unified social payment and social tax the same thing?

Yes. Unified social payment was the former name: from 1 January 2019 its rate was 12% for businesses and 25% for state-funded organisations (Decree No. UP-5468 of 29 June 2018), and the 2020 Tax Code renamed it social tax while retaining the same rates (Art. 405 of the Tax Code). Returns and payments made under the former name before 2026 count towards an employee's insurance record.