Offset and refund of overpaid taxes

A tax overpayment can be offset against a debt or future payments, or refunded in full or in part. A written application is required for a refund; the standard period is 15 days (Article 104 of the Tax Code), and an application may be filed within three years after payment.

In brief:

• If there is a debt, the tax authority applies the overpayment to it on its own initiative.
• An application for an offset or refund must be filed within 3 years (Article 104 of the Tax Code) from the payment date.
• A standard refund takes 15 days; the period is 3 days for certain businesses with a high sustainability rating, except for VAT.
• Interest accrues for a delayed refund and, in specified cases, for an excessive collection.
• Any balance remaining after the mandatory offset can be refunded in full or in part.

Updated: 04 September 2026

What is a tax overpayment?

An overpayment arises when the budget actually receives more tax than was due. A taxpayer has the right to a timely refund (Article 21 of the Tax Code) of overpaid or excessively collected taxes, penalties, and fines.

An overpayment and an excessive collection produce a similar result, but different grounds for calculating interest apply to them. An overpayment generally results from a duplicate or mistaken payment, an incorrect calculation, or a later reduction of the tax assessed. An excessively collected amount results from collection by a tax authority; Article 105 of the Tax Code sets a separate application period and interest rules for it.

If an error appears in a previously filed tax return and changes the calculated amount, the taxpayer submits an amended return (Article 83 of the Tax Code). Assessments and payments are recorded in the taxpayer’s personal account card (Article 89 of the Tax Code). Comparing the return, payment documents, and personal account card shows whether an overpayment exists and how much it is.

If there are signs of an overpayment but the amounts differ, either the taxpayer or the tax authority may propose a joint reconciliation (Article 103 of the Tax Code) of taxes, penalties, and fines. The result is recorded in a reconciliation statement. A later tax audit may treat an amount that was previously refunded in excess (Article 159 of the Tax Code) as tax debt from the date the money was received or the offset was made.

Which amounts may be offset or refunded?

The general rules cover more than a final tax payment. They apply to advance and current payments (Article 103 of the Tax Code), fees, penalties, and fines, and they also apply to tax agents and fee payers. Offsets, refunds, and interest payments are made in the national currency.

The same rules cover amounts paid by mistake (Article 104 of the Tax Code) as tax, a penalty, or a fine. The basis is a written request from the taxpayer or, if the bank or the Treasury of the Republic of Uzbekistan made the error, a request from the relevant organization.

VAT enters the general system only after the tax authority has made a refund decision. The creation of a negative amount, the desk audit, and accelerated reimbursement are governed by special rules.

This article does not cover how a negative VAT amount is formed or how its validity is checked. The article on value added tax explains input VAT credits, reimbursement, and special periods. It is the relevant guide when the refundable amount arose specifically from a VAT return.

Refunds of customs payments and state duty also have separate grounds and procedures. An application concerning customs payments is submitted to the customs authority, while an application concerning state duty is submitted to the authority or organization that collected it; a general application to the tax authority does not replace those procedures.

In what order is an overpayment offset?

If there is tax debt (Article 55 of the Tax Code), the taxpayer cannot freely choose to have the entire amount refunded. Tax debt includes overdue taxes, including advance and current payments, financial sanctions, and penalties.

The tax authority applies an overpayment to debt in the prescribed order:

1. the penalty on the tax for which the overpayment arose;
2. debt on other taxes and the related penalties;
3. fines for tax offences.

The tax authority makes this offset itself (Article 104 of the Tax Code). It makes the decision within 10 days after discovering the overpayment, signing the joint reconciliation statement, or the relevant court decision becoming final. The taxpayer still has the right to submit a written offset application.

After independently offsetting penalties and fines relating to the same type of tax, the tax authority must notify the taxpayer in writing, including through the personal account, within three working days. The payment obligation is treated as discharged on the decision date (Article 89 of the Tax Code). If a collection order has already been sent to the account, the tax authority withdraws it (Article 121 of the Tax Code) to the extent discharged by the offset.

Example. A company has an overpayment of UZS 12,000,000, a penalty of UZS 1,000,000 on that tax, a debt of UZS 4,000,000 on another tax, and a tax fine of UZS 2,000,000. First UZS 1,000,000 is offset, then UZS 4,000,000, and then UZS 2,000,000. The remaining UZS 5,000,000 may be refunded in full or in part or applied to future payments.

How to apply for an offset or refund

A written application is required to refund an overpayment. An application is not required for an offset against existing debt because the tax authority performs it independently; however, the taxpayer may file an application to record the amount and basis for the offset.

Before applying, it is sensible to take three steps in order:

1. check assessments and payments in the personal account card;
2. if there are discrepancies, correct the return or propose a joint reconciliation;
3. after confirming the overpayment, apply for a full or partial refund or offset.

Legal entities and individual entrepreneurs exchange documents with the tax authority only through the personal account (Article 56 of the Tax Code). Use of the account is voluntary for an ordinary individual. A taxpayer’s document is treated as received by the authority on the day it is sent through the account or, if sent by post, after 5 days (Article 19 of the Tax Code). Keeping the sending receipt helps establish when the period started.

A special electronic form for individuals applies to personal income tax overpayments resulting from relief for income spent on:

• tuition at colleges, technical schools, and universities;
• non-state preschool educational organizations and schools;
• repayment of mortgage loans.

For this service, a person may apply through a Public Services Centre, the electronic tax services portal, or the Unified Portal of Interactive Public Services. The service is provided free of charge, and the tax authority prepares its response within 10 working days. If the applicant’s data are incorrect, the applicant is notified within 5 days that a corrected form must be filed again.

The special form includes the personal identification number, tax type, personal Treasury account, overpayment amount, choice of a refund or offset, bank card number, transit account, bank code, and amount to be refunded. These details apply specifically to this service for individuals and are not a universal list for every tax application.

How long does an overpayment refund take?

The period depends on the type of amount and the taxpayer’s status. An application concerning an overpaid tax may be filed within 3 years (Article 104 of the Tax Code) from the payment date unless tax legislation sets a special rule.

The preferential periods of 2 and 3 days apply to businesses with a high Business Sustainability Rating, other than state enterprises and legal entities in which the state owns 50 per cent or more. VAT is excluded from this acceleration.

Before the period expires, the tax authority prepares an instruction based on its decision and sends it to the Treasury. The bank executes the refund instruction without a service fee (Article 90 of the Tax Code).

When does interest accrue?

For an ordinary overpayment, interest arises if the tax authority breaches the prescribed refund period. It accrues on the unrefunded balance for each day of delay (Article 104 of the Tax Code) at the Central Bank refinancing rate applicable on that day and is paid from the relevant budget.

The rule for an excessively collected tax is broader. The amount itself is refunded with interest upon application; interest accrues from the day after collection through the day of the actual offset or refund. However, the right to this interest depends on applying within 30 days (Article 105 of the Tax Code) after the taxpayer learned of the excessive collection or after the court decision became final.

The Tax Code ties the calculation to the rate applicable on each day of the period. Therefore, if the rate changes, the period is divided by date. Article 105 does not provide a separate fixed rate or lump sum: the calculation uses the amount actually collected, the dates of collection and offset or refund, and the refinancing rate for each relevant day.

How to recover excessively collected tax

An application concerning an excessively collected amount may be filed within 3 years (Article 105 of the Tax Code) from the day the taxpayer learned of the collection or the date the court decision became final. The standard refund period is 15 days and, for the specified businesses in the high-rating category, 3 days, except for VAT.

The amount can be applied to existing debt or future payments. An offset against future payments of other taxes is made within 3 days (Article 105 of the Tax Code) upon a written or electronic application.

If a higher tax authority or a court reverses a decision made following an on-site inspection or tax audit, taxes and financial sanctions collected or paid under it must be refunded with interest (Article 230 of the Tax Code). The rate is determined for the period of collection or payment.

Special rules for personal income tax refunds

Excess tax withheld within one tax period is first refunded by the tax agent. The employee or other income recipient submits a written application to the agent, and the agent transfers the amount within 3 months (Article 391 of the Tax Code), without cash, to the specified bank account from future personal income tax remittances.

If there is no tax agent or the tax period has ended, the individual submits an application to the tax authority together with an annual aggregate income return. A personal income tax overpayment determined under that return is refunded on application regardless of the registration place (Article 105 of the Tax Code).

A non-resident individual whose income is covered by an Uzbek tax treaty may recover tax withheld at source (Article 401 of the Tax Code) under Chapter 12. For non-resident income, the beneficial recipient may also claim a refund if the tax agent remitted the tax to the budget; this right is expressly linked to excessive withholding (Article 357 of the Tax Code).

What happens during liquidation or reorganization?

When a legal entity is liquidated, an overpayment is first offset against debt on other taxes. If there is no debt, the amount is refunded to the entity in liquidation within 15 days (Article 91 of the Tax Code) after its application. If no application is filed, the balance is removed from the personal account card after the organization is deleted from the Unified Register of Taxpayers.

During reorganization, the overpayment passes into settlements with the legal successors. The tax authority offsets it against transferred debt within 1 month (Article 92 of the Tax Code) after the reorganization is completed. If there is no debt, the successors receive a refund within one month after their application, in proportion to the shares established by the separation balance sheet.

What changed in 2026–2027?

• Decree UP-95 of 19 May 2026 introduced an experiment in Navoi Region from 1 July 2026 to 1 July 2027: tax payments and the mutual offset of overpayments and debt are processed through a single Treasury account.
• The same Decree UP-95 of 19 May 2026 established a future rule from 1 January 2027: the personal income tax mortgage relief will be applied proactively using inter-agency data, and the resulting overpayment will be refunded within 10 working days upon the individual’s request.

A separate future change concerns automated VAT reimbursement for certain low-risk taxpayers. It belongs to the special VAT procedure and does not change the general 15-day procedure (Article 104 of the Tax Code).

What to do after a refusal or delayed refund

The tax authority gives notice of a refusal within 3 days (Article 104 of the Tax Code) after making its decision. The taxpayer may appeal the decision, action, or omission to a higher tax authority or a court.

A complaint unrelated to a tax audit decision is considered by the higher authority within 15 days (Article 235 of the Tax Code). The period may be extended to obtain documents or when additional documents are submitted, but by no more than another 15 days.

The court route depends on the relief sought. A dispute over repayment of money from the budget is heard by an economic or civil court, while a challenge to a tax authority’s decision, action, or omission goes to the administrative court (paragraph 10 of Supreme Court Plenum Resolution No. 4). In a claim for a refund from the budget, the court applies Chapter 12 of the Tax Code and considers joining the Ministry of Economy and Finance or its territorial body as a third party.

As a general rule, an application to the administrative court is filed within 6 months (Article 186 of the Code of Administrative Procedure) after the taxpayer learned of the violation. The Supreme Court Plenum explains that the period runs from awareness of the decision even if it was not delivered under the prescribed procedure. A missed period may be restored for a valid reason.

If the court finds a refusal or omission unlawful, it may order the authority to make a decision or take an action. The authority must report its compliance (Article 189 of the Code of Administrative Procedure) to the court and the applicant within one month after the judgment becomes final unless the court sets another period.

Frequently asked questions

Can an overpayment be refunded if there is tax debt?

Only the balance after the mandatory offset can be refunded. The tax authority first applies the overpayment to the penalty on the same tax, then to other taxes and the related penalties, and then to tax fines. If part of the amount remains, it may be refunded in full or in part upon a written application or applied to future payments.

Is an application required to offset an overpayment?

An application is not required for an offset against existing tax debt: the tax authority performs it independently. The taxpayer may submit a written application, particularly to record an identified amount or attach the reconciliation result. A written or electronic application is required to offset an excessively collected amount against future payments of other taxes.

How many days does a tax refund take?

The standard period for refunding an overpaid or excessively collected tax is 15 days after receipt of the application. For businesses with a high sustainability rating, the period is 3 days, but the acceleration does not apply to VAT and does not cover state enterprises or legal entities in which the state owns 50 per cent or more.

When does interest accrue on a tax overpayment?

Interest on an overpaid amount accrues for each day after the refund period is breached. Interest on an excessively collected amount accrues from the day after collection until the actual offset or refund if the taxpayer applies within 30 days after learning of the collection or after the court decision becomes final.

Can a tax refund application be filed online?

Legal entities and individual entrepreneurs exchange documents with the tax authority through the personal account. Individuals may use the account voluntarily. A separate electronic service on the tax portal or the Unified Portal applies to personal income tax refunds for relief connected with education, non-state preschools or schools, and mortgages; an application can also be filed through a Public Services Centre.