What Taxes a Business Pays in Uzbekistan: Regimes, Reporting and Deadlines

Understanding your tax regime is the foundation of a calm business: it determines your rates, the volume of reporting and payment deadlines. Below is an overview map of taxes for companies and sole proprietors in Uzbekistan. Specific rates and thresholds are set by the Tax Code and are refined every year, so it's best to confirm the current figures for your period with an accountant.

The two main regimes

Most companies operate under one of two regimes:

• The simplified regime — turnover tax. Suits small businesses with revenue below the set threshold: a percentage of turnover is paid, and reporting is simpler.
• The general regime — VAT and profit tax. Mandatory once the turnover threshold is exceeded and for a number of activities; here full accounting of input and output VAT is maintained.

The choice of regime also affects whether large counterparties are keener to work with you: a VAT payer fits more easily into a chain with other VAT payers.

Payroll taxes

If you have employees, payroll taxes and contributions are added: personal income tax, social tax and contributions to individual funded pension accounts (INPS). They are withheld and remitted monthly, and reporting on employees is filed.

Reporting and deadlines

Even under the simplified regime, a business regularly files reports: tax, employee-related and statistical. Missing deadlines is the most common cause of fines and penalties, so it's important to keep a calendar of payments and reports.

• tax reporting — at the frequency set for the regime;
• reporting on employees and payroll taxes — monthly;
• statistical reporting — per the forms and deadlines of the statistics authorities;
• annual financial statements — at the end of the year.

How to avoid getting confused

Errors most often arise at the boundary between regimes (for example, when crossing the turnover threshold during the year), when working with imports and when calculating payroll taxes. What helps here is either a strong in-house accountant or outsourcing with a team that runs dozens of companies in different situations and spots risks in advance.