Turnover tax in Uzbekistan: rates and calculation

Turnover tax is a special tax regime (Tax Code, art. 18) for small businesses. Since June 1, 2026, the income threshold has been 12,000 BRV (5.280.000.000 UZS). The main rates are 4% and 1% (Tax Code, art. 467), and the calculation and payment are due by the 15th (Tax Code, art. 470) of each following month.

In brief:

• the general rate is 4% (Tax Code, art. 467); individual entrepreneurs and self-employed persons pay 1%, while retailers use 4%, 2%, or 1% depending on location
• since June 1, 2026, the threshold for moving to the general tax regime is 12,000 BRV (5.280.000.000 UZS)
• tax is calculated on aggregate income, but for certain transactions the base is the fee, interest income, or value of transferred property
• the reporting period is one month; the return and payment are due by the 15th (Tax Code, art. 470), and the annual calculation is due by February 15
• before choosing the regime, check revenue, the type of activity, the location of each retail outlet, and whether separate accounting is required

Updated: 04 September 2026

What turnover tax is and who pays it

Uzbek legal entities, individual entrepreneurs, and self-employed persons may use turnover tax if they remain within the current income threshold and are not covered by an exclusion. These three taxpayer groups (Tax Code, art. 461) are named in the Tax Code.

Since June 1, 2026, the income threshold for transition to the general tax regime has been set at 12,000 basic calculation values, equal to 5.280.000.000 UZS at the current basic calculation value (BRV). This is the later special rule in Presidential Decree UP-100. The same chapter of the Tax Code still contains the former amount, so this article applies UP-100 when stating the current threshold.

The tax is charged on income, not on the difference between revenue and expenses. Purchase cost, payroll, rent, and other ordinary expenses do not by themselves reduce the tax base. A reduction is available only in cases expressly listed in the rules governing the tax base.

Who cannot pay turnover tax

The basic list of exclusions is closed within the text of the Tax Code (Tax Code, art. 461). Turnover tax does not apply to:

1. legal entities, individual entrepreneurs, and self-employed persons importing goods across the customs border;
2. legal entities producing excisable goods or services, and persons extracting minerals;
3. agricultural producers that are legal entities and have at least 25 hectares of irrigated agricultural land;
4. legal entities selling gasoline, diesel fuel, or gas;
5. legal entities organizing lotteries;
6. the managing partner entrusted with conducting a simple partnership’s joint activity, except for the Code’s specified case of Islamic finance transactions with banks and microfinance organizations;
7. legal entities owning vacant non-residential buildings, structures, unfinished construction, or unused production areas for which a finding of inefficient use has been issued;
8. legal entities constructing facilities from centralized financing sources, except for current and capital repairs;
9. permanent retail outlets selling alcoholic products, including beer;
10. markets and shopping complexes;
11. tax consulting organizations;
12. audit organizations;
13. non-profit organizations, including budget-funded organizations;
14. enterprises trading in medicines or medical products, and organizations providing medical services;
15. businesses producing or selling jewelry.

A later special act may establish a different rule for a particular industry. For example, beginning July 1, 2026, licensed operators of lotteries, online games, and bookmaking have been placed for three years under a 4% rate applied to income less winnings paid and bets returned.

The sources must be read together for importers. UP-100 canceled the automatic treatment of an importer as a value added tax (VAT) payer, but the current turnover-tax exclusion list continues to name importers. Therefore, cancellation of automatic VAT registration does not by itself establish that a particular importer may use turnover tax.

How to switch to turnover tax

An existing organization chooses turnover tax from the next tax period. A legal entity must notify the tax authority at its place of registration at least 10 days (Tax Code, art. 462) before that period begins. Because the tax period is the calendar year (Tax Code, art. 469), an ordinary transition takes effect from the beginning of the following year.

A newly created legal entity may use the regime from the date of state registration if it identifies the chosen taxation procedure during registration. If a business voluntarily switched to VAT, it may return to turnover tax no earlier than 12 months later, and only if it complies with the current income threshold.

This section covers only the choice of turnover tax and the timing of a regime change. The article on value added tax explains VAT registration, calculation, input tax credit, and reporting. It is relevant when revenue approaches the threshold or customers need input VAT.

Turnover tax rates in 2026

The general rate is 4%, but the Code sets separate rates for retail businesses, agricultural procurement organizations, individual entrepreneurs, self-employed persons, and certain organizations involving associations of persons with disabilities. All principal rates appear in one provision (Tax Code, art. 467).

There is no fixed-sum turnover tax in the current rules. The rate provision says that the former parts ceased to have effect on January 1, 2026 (Tax Code, art. 467), so the tax is now calculated as a percentage.

Targeted special regimes also exist. Creative Park residents may remain turnover-tax payers regardless of income until January 1, 2031. Cultural and certain educational organizations receive a separate exemption from September 1, 2026, described below in the changes section.

This article does not catalog every industry or territorial incentive. The article on tax incentives explains the types of incentives, their duration, and conditions. Consult it if a business is a resident of a special zone or park, or operates in an industry governed by a separate act.

How to determine the tax base

The taxable object is aggregate income (Tax Code, art. 463), excluding income that the Code does not take into account for taxation. A special method applies to income from certain transactions:

• construction, installation, repair, commissioning, design and survey, and research organizations count the value of work performed using their own resources; customer-supplied materials are excluded if ownership remains with the customer;
• a lessor recognizes interest income from finance leases;
• an intermediary under commission, agency, and similar contracts recognizes its fee;
• when a legal entity transfers property free of charge, it recognizes production cost or purchase price plus related costs, except for the charitable and social transfers expressly listed.

A taxable object also arises when goods or services are transferred to a participant or shareholder, in lieu of wages or dividends, when customer-supplied property is not returned as a processed product, or when reusable packaging is not returned. Sale of a voucher is treated as sale of the goods or services obtainable with it. A positive balance of exchange-rate differences on foreign-currency accounts is included; a negative balance does not reduce the base.

The tax base is aggregate income less five groups of income (Tax Code, art. 464):

1. income from Uzbek government securities and the specified international bonds of residents;
2. dividends taxed by a tax agent;
3. the value of returned reusable packaging previously included in income;
4. income recognized on disposal of depreciable assets that is attributable to a revaluation above previous write-downs;
5. prior-year income for which a recalculation is made under the rules of the period in which it arose.

Additional reductions apply in four cases: a broker reduces the base by the exchange commission; an intermediary deducts customs payments relating to the sold part of imported goods; a tourism business deducts the cost of software for online booking; and any business may deduct the cost of tickets for employees and their close relatives to cultural and entertainment events, within 0.5% of sales income.

An intermediary must distinguish two figures. Eligibility for the regime is tested using total turnover, meaning the full transaction amount, under the special intermediary rule (Tax Code, art. 462). The tax base for the intermediary service itself, however, is the fee.

A return of goods, a change in terms or price, a discount, or cancellation of a service permits an income adjustment (Tax Code, art. 466). An adjustment is generally available within the year, and for goods and services under warranty, within the warranty period. Supporting documents are required, and the change is reported in the period when the ground for adjustment arose.

How to calculate turnover tax

Tax is calculated cumulatively from the beginning of the calendar year: multiply the tax base by the rate and subtract the tax already accrued for previous months. This calculation procedure (Tax Code, art. 470) is applied separately for each rate.

Example. A company taxed at 4% has a January tax base of UZS 300,000,000. January tax is 300,000,000 × 4% = UZS 12,000,000. By the end of February, the cumulative base is UZS 500,000,000. Tax from the beginning of the year is 500,000,000 × 4% = UZS 20,000,000, so the February accrual is 20,000,000 − 12,000,000 = UZS 8,000,000.

Retail example. A shop in a large city has UZS 80,000,000 of turnover, while its outlet in another settlement has UZS 40,000,000. With separate accounting, tax is 80,000,000 × 4% + 40,000,000 × 2% = UZS 4,000,000.

Agricultural procurement example. At turnover of UZS 200,000,000, tax at 4% is UZS 8,000,000. If the 25% rate on gross income is used and gross income is UZS 30,000,000, tax is UZS 7,500,000. The selected measure must match the applicable rate row and the accounting data.

Turnover tax for individual entrepreneurs and the self-employed

For individual entrepreneurs and self-employed persons, the tax base is income from the sale of goods and services. Sale of personal or family property outside business activity is excluded. For payments through digital platforms, the payment organization acts as tax agent. For a self-employed person’s income from a legal entity, that legal entity withholds the tax after receiving notice from the tax authority. These tax-agent rules (Tax Code, art. 465) apply within the limits stated in the provision.

Beginning January 1, 2026, the former exemption for self-employed persons with income up to UZS 100,000,000 was abolished, and a 1% rate was introduced for individual entrepreneurs and self-employed persons with turnover up to UZS 1,000,000,000. In the special legal regime, payment organizations prepare reports and remit tax through digital platforms.

Example. A self-employed person receives UZS 50,000,000 of service income for the month. Tax at 1% is UZS 500,000. If a legal entity makes the payment and has received notice from the tax authority, the tax agent withholds the tax; otherwise, the general compliance procedure applies.

For retail payments, an individual entrepreneur or self-employed person must have a special QR code to accept electronic payments. From January 1, 2026, failure to have the code is treated as failure to use cash-register equipment or a payment terminal.

Reporting and payment deadlines

The tax authority generates the turnover-tax return electronically from information-system data and information entered by the taxpayer. If the information conflicts with the accounting documents, corrections must be made within five days (Tax Code, art. 81), but no later than the filing deadline. If no correction is made, the generated return is treated as accepted and filed.

The reporting period is one month and the tax period is the calendar year. The monthly calculation is due by the 15th of the next month, and the final calculation is due by February 15 (Tax Code, art. 470) of the next year. Tax is paid on the same dates.

If a previously filed calculation contains an error that understated tax, an amended return (Tax Code, art. 83) must be filed. After the payment deadline, relief from liability is possible if the amendment is filed before the taxpayer learns that the tax authority found the error or ordered an audit, and the missing tax and late-payment interest are paid before the amendment is filed.

Invoices, receipts, and separate accounting

When selling goods and services, a seller generally issues an electronic invoice. No invoice is required if the buyer receives a cash-register receipt or another prescribed document. A supplemental or corrected document is issued when price or quantity changes. These invoice rules (Tax Code, art. 47) apply even when the seller uses turnover tax.

Tax accounting must be based on primary documents and registers (Tax Code, art. 76) that substantiate the taxable object and calculation. This is particularly important for returns, discounts, intermediary fees, and transactions for which the base is not the entire payment received.

If a business conducts several activities with different taxable objects or rates, it must maintain separate accounting (Tax Code, art. 468). A retailer must also separate the turnover of outlets located in settlements with different rates. Without this allocation, the business cannot substantiate applying 4%, 2%, and 1% to the corresponding turnover.

What happens when the threshold is exceeded

On the day the income threshold is reached, a taxpayer stops using turnover tax and moves to VAT. The transition from the day of excess is established by the regime-change rule (Tax Code, art. 462), and since June 1, 2026, the current threshold is 12,000 BRV (5.280.000.000 UZS).

For the first transition from turnover tax to VAT, transitional support has applied since January 1, 2026. For one year, no fine is imposed for missing the VAT registration deadline. For six months, part of the accounting-service cost, up to 3.5 minimum wages per month (4.760.000 UZS), is offset against tax payments. This applies only to the first transition and does not remove the registration duty.

Liability for reporting and calculation

Different consequences apply to breaches of filing, accounting, and calculation rules:

• late filing by a microfirm or small enterprise carries a fine of 3 BRV (Administrative Liability Code, art. 175), equal to 1.320.000 UZS; in other cases, the provision sets 1 BRV for an individual (440.000 UZS) and 10 BRV for an officer (4.400.000 UZS); only one fine applies to multiple unfiled tax returns in the same month;
• violation by an individual entrepreneur of income-and-expense accounting rules carries a UZS 500,000 fine (Tax Code, art. 222);
• concealment or understatement of the tax base carries a fine equal to 20% of the concealed base (Tax Code, art. 223), and tax on that base is assessed in addition;
• non-payment caused by an incorrect calculation or another unlawful act that is not a separate specific violation carries a fine equal to 20% of the underpayment (Tax Code, art. 224);
• late-payment interest accrues for each calendar day beginning on the day after the due date; the daily rate is 1/300 of the refinancing rate (Tax Code, art. 110) of the Central Bank.

Example. If UZS 10,000,000 is unpaid because of an incorrect calculation and the 20% underpayment fine applies, the fine is UZS 2,000,000. The tax itself and late-payment interest are calculated separately.

What changed in 2025–2026

• From January 1, 2026, Resolution PP-247 of August 12, 2025 introduced the 1% rate for individual entrepreneurs and self-employed persons and abolished the exemption for self-employed persons with income up to UZS 100,000,000. From the same date, Decree UP-138 of August 19, 2025 introduced transitional measures for the first move from turnover tax to VAT.
• From June 1, 2026, Decree UP-100 of May 26, 2026 increased the income threshold for transition to the general tax regime to 12,000 BRV (5.280.000.000 UZS).
• Decree UP-175 of August 27, 2026 introduced the “Second Chance” economic amnesty through December 31, 2026. Subject to its conditions, late-payment interest on old debt is written off; no interest accrues when a taxpayer voluntarily corrects a return and pays the additional tax; and the unpaid balance of former fixed turnover-tax fines is written off.
• From September 1, 2026, Decree UP-103 of June 2, 2026 exempted through January 1, 2036 organizations whose principal activity comprises the concert entertainment, film, children’s content, non-state theatre, and studio-theatre activities named in the act, as well as private educational organizations in culture and the arts.

What to check before choosing the regime

First compare expected annual income with the 12,000 BRV threshold. Then check whether the activity is on the exclusion list or governed by a special industry act. Retailers should identify the location of every outlet; intermediaries should separate the full transaction amount from their fee; and businesses using several rates should set up separate accounting. Finally, establish a calendar for the monthly calculation, payment, and review of automatically generated returns.

Frequently asked questions

What percentage is turnover tax?

The general rate is 4% (Tax Code, art. 467). Retail rates are 4%, 2%, or 1% depending on the settlement, while tobacco turnover is taxed at 4% regardless of location. Individual entrepreneurs and self-employed persons use 1%. Agricultural procurement organizations use the option specified by the provision: 4% of turnover or 25% of gross income.

Is turnover tax payable on exports?

Export is not itself identified as a separate ground for a zero turnover-tax rate. The taxable object remains aggregate income (Tax Code, art. 463), and the rate table (Tax Code, art. 467) contains no separate zero rate for exports. Export revenue is therefore taxed at the payer’s applicable rate unless a special incentive applies.

Can a business switch from VAT to turnover tax?

Yes, if it satisfies the conditions of the regime. An existing legal entity switches from the next tax period and gives notice 10 days before it begins (Tax Code, art. 462). After voluntarily using VAT, the business may return no earlier than 12 months later if it remains within the current income threshold and no turnover-tax exclusion applies.

Is there a fixed turnover tax in 2026?

No. The current provision contains percentage rates and expressly states that the former parts ceased to have effect on January 1, 2026 (Tax Code, art. 467). Turnover tax is therefore calculated as a percentage of the tax base in 2026. Individual entrepreneurs and self-employed persons pay 1%, not a fixed annual amount.

Who pays tax on a self-employed person’s income from a legal entity?

For income earned by a self-employed person from selling goods or services to a legal entity, that legal entity is the tax agent if it has received the relevant tax-authority notice. It withholds the tax at the source of payment. A payment organization is the tax agent for income received through a digital platform. These two withholding cases (Tax Code, art. 465) must be distinguished from self-payment in other situations.