Water use tax

The tax applies to companies, permanent establishments of non-residents, entrepreneurs and certain owners of property or agricultural land that carry out primary water use or water consumption. The tax base is the volume of water used; the rate depends on the source, purpose and applicable coefficients.

In brief:

• the tax applies to the specified taxpayers (Article 441 of the Tax Code), not everyone who pays a utility water bill;
• base rates range from UZS 107 to UZS 40,660 (Article 445 of the Tax Code) per cubic metre, with different surface-water and groundwater rates for some categories;
• water above the limit, water used without permits and some groundwater taken without a meter are subject to a fivefold rate (Article 445 of the Tax Code);
• the return is filed once a year, but the deadline depends on the taxpayer (Article 447 of the Tax Code);
• before calculating the tax, separate volumes by source and use, then check the limit, permit and coefficient adopted by the relevant district or city Kengash.

Updated: 04 September 2026

What is water use tax

It is a resource tax charged on water used from surface-water and groundwater sources. Its introduction, calculation and payment are governed by the Tax Code (Article 151 of the Water Code).

The tax is not the supplier’s service charge. The Water Code separately lists the tax, charges for water delivery and other water-management services, payment for acquiring a quota, an additional charge for above-limit use and compensation for pollution. They are different payments (Article 150 of the Water Code): a utility bill or delivery charge does not replace a tax obligation.

This article is limited to water use tax and does not cover mineral extraction. Subsoil use tax and the special rental tax are separate obligations. They become relevant when an activity involves extracting minerals or recovering useful components.

Who pays water use tax

Taxpayers are persons carrying out primary water use or water consumption in Uzbekistan. The list of taxpayers (Article 441 of the Tax Code) covers:

• legal entities of Uzbekistan;
• non-resident legal entities operating through permanent establishments;
• individual entrepreneurs using water for business;
• individuals who own non-residential real estate intended for business and/or earning income;
• dehkan farms;
• individuals who own agricultural land.

A legal entity that supplies water to populated areas pays the tax only on water used for its own needs. Water delivered to consumers does not become its tax base under this rule.

Receiving water through a mains network does not always mean that the consumer must pay this tax itself. The first questions are whether the person belongs to a taxpayer category and who determines the tax base under the contractual arrangement. For leased premises, the party to the water-supply contract matters.

Which volumes of water are taxable

The taxable object is water used from surface-water and groundwater sources. The tax base is the volume of water used (Article 443 of the Tax Code), normally measured in cubic metres.

The following eight categories of water (Article 442 of the Tax Code) are outside the taxable object:

1. water used by a non-profit organisation in its non-profit activity;
2. mineral groundwater used by healthcare institutions for treatment, except water used for sale through retail networks;
3. groundwater extracted to prevent harmful environmental effects, except the volume used for production and technical needs;
4. groundwater extracted through mine drainage together with minerals and reinjected to maintain formation pressure, except water used for production and technical needs;
5. water used to operate hydraulic turbines at hydroelectric power stations;
6. water discharged back by thermal power stations and combined heat-and-power plants;
7. water used to leach saline agricultural land within the leaching rate approved by the competent water-use authority;
8. water used from collector-drainage networks.

Only the volume meeting the conditions of the relevant item is excluded. For example, the treatment exclusion for mineral water does not cover water bottled for sale, while the mine-drainage exclusion does not cover water actually used for production.

How to determine the tax base

The main method is to use water-meter readings recorded in accounting or primary records. Without a meter, the volume is determined using water-intake limits, technological and sanitary consumption standards, crop and green-space irrigation standards, or another method producing verifiable data. These volume-determination methods (Article 444 of the Tax Code) are applied according to the activity.

Surface water and groundwater must be accounted for separately. Where a mains network receives both, the supplier reports the ratio to the tax authority by 15 January, and the authority informs taxpayers within three days. Taxable and non-taxable activities also require separate accounting; if separation is impossible, the base is apportioned according to the share of net revenue from the taxable activity.

Special rules apply in particular situations:

• a landlord determines the base for leased premises if it contracted with the water supplier; a tenant does so independently if it entered into that contract;
• water used for repairs or construction on the premises of an operating legal entity is taxed to the customer, while water used at a new construction site is taxed to the construction company;
• a fish farm using an artificial reservoir takes the difference between water intake and return flow, excluding discharge into a collector-drainage network;
• for turbine cooling, the base is the difference between intake and return to the natural water body, provided verifiable records or a permit exist;
• producers of non-alcoholic beverages and alcoholic products other than beer and wine separately account for water contained in finished consumer packaging and water used for other purposes.

A taxpayer conducting several activities with different objects or rates must keep separate records for them. Without this separation, it cannot support which volume relates to ordinary business, beverage production, vehicle washing, irrigation or non-taxable use.

Water use tax rates in 2026

The base rate is set per cubic metre of water within the approved limit. The following tax rates apply (Article 445 of the Tax Code):

A local coefficient may modify the rate. A district or city Kengash may set a coefficient between 0.7 and 1.5, except for power stations and utility companies, agricultural irrigation and fish farming, and large taxpayers included in the presidential list. The table therefore gives the starting rate, not necessarily the final rate for a particular location.

This article does not calculate land tax on agricultural or other land. The land tax article explains its taxpayers, base and deadlines. It is relevant when a business uses land as well as water because the two obligations are calculated separately.

Which coefficients increase or reduce the rate

For agricultural irrigation and fish farming, the result depends on metering and water-saving technology. The law provides these coefficients:

A fivefold rate applies to volume above the limit, use without permits, and a vehicle-washing business taking water from a surface-water source. The rate is also multiplied by five for groundwater intake without a water meter. There is an exception for an individual taking up to five cubic metres of groundwater a day for personal and household needs.

If several grounds arise at the same time, coefficients should not be multiplied automatically. Article 445 of the Tax Code sets separate cases for applying rates but does not state a general rule that all increases are compounded. Break the calculation down by volume and the ground applicable to each part.

How to calculate water use tax

The formula is: tax base × rate × applicable coefficient. The calculation rule (Article 447 of the Tax Code) requires the established base and rate to be used. Calculate different sources and uses separately, then add the results.

Example 1. A manufacturing company used 10,000 cubic metres of surface water within its limit. No local coefficient applies. The calculation is 10,000 × UZS 749 = UZS 7,490,000.

Example 2. An agricultural enterprise used 50,000 cubic metres for irrigation, implemented water-saving technology and meters the volume. The 0.5 coefficient applies to the UZS 107 rate. The calculation is 50,000 × 107 × 0.5 = UZS 2,675,000.

Example 3. Of the 11,000 cubic metres of surface water used by an ordinary business, 1,000 cubic metres exceeded the limit. Within the limit: 10,000 × 749 = UZS 7,490,000. Excess: 1,000 × 749 × 5 = UZS 3,745,000. Total: UZS 11,235,000. A financial sanction under the Water Code may apply separately from the increased tax rate.

Before finalising the amount, reconcile the supplier’s statement, meters and primary records. A difference found during reconciliation with the supplier is reported in the calculation for the period in which the reconciliation occurred.

When to file and pay water use tax

The tax period is the calendar year (Article 446 of the Tax Code). A return is filed once a year at the place of water use or consumption; the date depends on the taxpayer category.

The reporting deadlines and automated agricultural calculation are set for each category (Article 447 of the Tax Code). In agriculture, including fish farming, the tax authority generates the return from Suv hisobi and data held by the authorities responsible for water records.

Advance payments do not apply to agricultural enterprises, non-residents with a permanent establishment, dehkan farms or individuals with agricultural land or the relevant non-residential property. Other taxpayers submit an estimated-tax certificate by 20 January. A newly established entity files within 30 days after state registration; if the obligation arises during the year, the deadline is 30 days from that date.

Where the annual tax exceeds 88.000.000 UZS, representing 200 times one BRV, the base calculation unit, an ordinary legal entity that does not pay turnover tax pays one twelfth by the 20th day of each month. Below that threshold, and for turnover-tax payers and individual entrepreneurs, one quarter is paid by the 20th day of the third month of each quarter. These advance-payment rules (Article 448 of the Tax Code) permit a revised certificate if expected volume changes.

If advances are understated by more than 10% compared with the tax shown in the annual return, the tax authority recalculates them from the actual amount and charges interest. The final tax is paid at the place of water use or consumption no later than the applicable return deadline.

What documents and records does a water user need

Registration of the taxable object, water-management documents and primary records serve different purposes. If the water-tax obligation arises outside the taxpayer’s main place of registration, it must apply to register the object within ten days; the tax authority completes registration within three working days (Article 131 of the Tax Code).

Special water use includes intake through pumps and other lifting equipment, hydropower, water transport and wastewater discharge. This list of operations (Article 55 of the Water Code) helps distinguish special use from ordinary network consumption.

A permit is required for intake exceeding five cubic metres per day using water-intake structures, and for discharge of wastewater or collector-drainage water. No special permit is required for an artificial reservoir. These permit conditions (Article 56 of the Water Code) do not remove the contract, quota, limit or tax requirements.

A permit for surface water and approved groundwater reserves is generally issued for five years (Article 57 of the Water Code); a group intake using unapproved reserves receives no more than two years. An extension may be requested no later than one month before expiry. A new permit is required if the source, purpose or other conditions change.

Water use is based on a contract (Article 66 of the Water Code) with the water-supply organisation and requires a quota. Quotas are allocated by source, territory and sector; for special use of a natural water body, the quota appears in the permit (Article 61 of the Water Code). The contract records the quota, adjustment mechanism for seasonal or annual limits, and delivery charge.

Water must be taken from a registered point agreed with the water-supply organisation; a reduction or stoppage must be reported to that organisation. This intake condition (Article 32 of the Water Code) operates together with contract registration. A contract takes effect (Article 67 of the Water Code) when registered in the special information system.

The intake point must have a passport and registration, regulation and metering devices, and the required certification. A daily electronic water log is kept for each point; by the fifth day of the next month, the parties execute a bilateral electronic statement in the system. These water records (Article 49 of the Water Code) are also used for the tax base.

A water user must also comply with the purpose and limit, obtain a permit and contract, submit an application, keep records, provide information and pay the tax and other charges on time. The principal duties of a water user (Article 75 of the Water Code) should be checked as one set before intake begins.

Liability for violations

An increased tax rate, a financial sanction under the Water Code and an administrative fine are separate consequences. Unauthorised water intake is prohibited (Article 78 of the Water Code); one act may affect the tax and also constitute a separate violation of the water-intake procedure.

For legal entities, the Water Code sets financial sanctions for each thousand cubic metres:

The amounts and procedure apply to a water-intake violation (Article 164 of the Water Code). A repeated violation within one year multiplies the sanction by five. If a legal entity does not pay voluntarily within one month, the sanction is imposed through court proceedings.

For violation of water-use rules involving natural water bodies, an individual faces 1.320.000 to 2.200.000 UZS and an official 2.200.000 to 4.400.000 UZS. For artificial water bodies, an official faces 3.080.000 to 4.400.000 UZS. A groundwater violation carries 2.640.000 to 6.600.000 UZS for an individual and 6.600.000 to 9.240.000 UZS for an official. These administrative fines (Article 74 of the Code of Administrative Liability) increase for a repeat violation.

Violation of primary records for water intake and discharge carries a fine of 1.320.000 to 2.200.000 UZS for an official, rising to 2.200.000 to 4.400.000 UZS if repeated within a year. The liability applies to a record-keeping violation (Article 75 of the Code of Administrative Liability).

Late registration of a taxable object by up to 30 days carries a fixed fine of UZS 1,000,000; more than 30 days carries UZS 2,000,000. The fine amount (Article 219 of the Tax Code) is fixed. A separate penalty applies to record-keeping violations that understate tax and to late returns; the relevant administrative measures (Article 175 of the Code of Administrative Liability) depend on the offender’s status.

What changed in 2025–2027

• The Water Code adopted on 30 July 2025 has applied since 31 October 2025. It introduced electronic water records (Article 49 of the Water Code), a monthly bilateral statement and separate financial sanctions for the water-intake procedure.
• Presidential Decree No. UP-183 of 13 October 2025 requires a legal entity to review a bilateral statement in Suv hisobi within ten days. Without confirmation or documented objections, the statement is treated as agreed. If agricultural volume cannot be metered, satellite monitoring and then digital-platform standards apply; irrigation standards apply to dehkan farms and individuals.
• Presidential Resolution No. PP-47 of 5 February 2026 provides that, from 1 April 2026, traditional irrigation or failure to use subsidised water-saving technology is treated as unauthorised use, except where the supplier breached the specified warranty or service obligation.
• Presidential Resolution No. PP-47 of 5 February 2026 sets future rules from 2027: failure to implement water-saving technology in an area with stable water supply will double the rate for an agricultural producer; smart meters will become mandatory for rice and fish-farming facilities, and the rate will also double without smart meters.

The 2027 rules are not yet in force on this article’s update date. They matter for equipment and technology planning, but tax for 2026 is calculated under the current Article 445 of the Tax Code and the applicable local decision.

What to check before payment

First identify the taxpayer under the contractual structure and place of water use. Then compile volume by source, separate non-taxable water and different activities, and reconcile meters, monthly statements and the limit. For agricultural irrigation, check the technology and measurement method; for groundwater, check the permit and meter; for every site, check the district or city Kengash decision.

Apply the rate and coefficient to each separate volume, add the results and compare them with the advance-payment certificate. If expected volume changed, a revised certificate adjusts the remaining advances in equal shares. Before filing, confirm that the object is registered at the place of water use and that the final payment will meet the deadline for the taxpayer category.

Frequently asked questions

What is water tax?

This is the common short name for water use tax. It is calculated from the taxable volume of water, not the utility bill. The tax is distinct from water-delivery charges, services of a water-management organisation and pollution compensation. A taxpayer first determines the taxable volume, applies the rate for the source and use, and then applies any relevant coefficient.

How do I calculate water use tax without a meter?

Without a meter, volume is determined from the water-intake limit, technological and sanitary standards, irrigation standards or another supportable method. Agriculture may also use Suv hisobi data, satellite monitoring and approved standards. However, groundwater intake without a meter may trigger a fivefold tax rate, while an intake point without metering equipment can lead to a separate financial sanction.

Who pays the tax for leased premises?

For a leased part of a building or separate premises, the landlord normally determines the base if it contracted with the water supplier. If the tenant entered into that contract, the tenant determines the base independently. A lease clause assigning utility bills is therefore not enough: check the water-supply contract, each party’s taxpayer status and how the volume is shown in primary records.

Does an ordinary mains-water customer pay water use tax?

Not every household customer is a taxpayer. The Tax Code specifies legal entities, individual entrepreneurs, certain individuals, dehkan farms and individuals with agricultural land. For a business or entrepreneur, water from a mains network may form a tax base, with the surface-water and groundwater shares determined from supplier data. Paying a utility bill alone does not answer the tax question without checking status and use.

Where can I find the local rate coefficient?

The district or city Kengash of people’s deputies adopts the coefficient within Article 445 of the Tax Code. Check the decision for the place of water use and the relevant year. The national table gives the base rate, but the result can vary for particular categories and locations. The Code limits local powers for power stations, utility companies, agricultural irrigation, fish farming and large taxpayers.