Individuals are subject to tax in Uzbekistan based on their tax residency status. A resident is defined as an individual who is physically present in Uzbekistan for 183 days or more in any period up to 12 months ending in a calendar year. Individuals not meeting this test are considered to be nonresidents. Residents are taxed on their worldwide income. Non residents are taxed only on their Uzbek-source income.
Income subject to tax. In general, all income and benefits-in-kind are taxable in Uzbekistan, unless they are specifically exempt. Income that is specifically exempt from tax includes alimony, severance pay (up to a maximum amount) and state pension income.
The taxation of various types of income is described below.
Employment income. Employment income includes all cash and non-cash remuneration, allowances and benefits arising from employment.
Self-employment and business income. In general, self-employment and business income is included in an individual’s gross income and taxed at the general individual income tax rates (see Rates). However, a special tax regime applies to private entrepreneurs, who may be subject to tax at fixed rates, which vary depending on the activities of the entrepreneurs and the location of the activities. The fixed rates vary from 1 minimum wage (approximately USD44) to 10 minimum wages (approximately USD440) per month.
Directors’ fees. Directors’ fees are generally included in gross income and are subject to individual income tax at the general individual income tax rates (see Rates).
Investment income. Dividends and interest income received from Uzbek companies are subject to withholding tax at a rate of 10%. Royalties and other investment income are generally taxable at the general individual income tax rates (see Rates). However, interest income of individuals received from certificates of deposits, bank deposits and government securities is exempt from tax.
Taxation of employer-provided stock options. The Uzbek law does not provide any specific measures regarding the taxation of stock options.
Capital gains and losses. Capital gains are normally subject to tax at the general individual income tax rates (see Rates). Capital gains derived from the sale of private nonbusiness property are exempt from tax. A capital gain derived from the sale of residential premises is exempt from tax if one transaction is conducted within a 12-month period. Capital losses are not deductible.
Deductions. No significant tax deductions are allowed for individuals.
Rates. The current monthly individual income tax rates are set forth in the table below. As of 1 January 2016, one minimum wage (MW) equaled UZS130,240 per month (approximately USD44). The following is the monthly individual income tax rate table.
| Monthly taxable income (MW) | Tax rate (%) | Tax due (MW) | Cumulative tax due (MW) |
| First 1 | 0 | 0 | 0 |
| Next 4 | 7.5 | 0.3 | 0.3 |
| Next 5 | 17 | 0.85 | 1.15 |
| Above 10 | 23 | — | — |
The following is an annual tax rate table using US dollars, based on the exchange rate of UZS2,943.46 = USD1 (as of 1 July 2016).
| Annual taxable income | Tax rate | Tax due | Cumulative tax due |
| USD | % | USD | USD |
| First 528 | 0 | 0 | 0 |
| Next 2,112 | 7.5 | 158 | 158 |
| Next 2,640 | 17 | 449 | 607 |
| Above 5,280 | 23 | — | — |
Relief for losses. Losses may not be carried forward or back by individuals.
Other taxes
Wealth tax and net worth tax. Uzbekistan does not impose a wealth tax or net worth tax.
Property tax. Property tax is imposed on buildings and apartments of individuals. The rates vary from 1.5% to 2.5% of the cost of the property.
Inheritance, estate and gift taxes. Inheritances and gifts received from other individuals are not taxable. Gifts from an employer valued above 6 MWs per year are taxable at the general individual income tax rates (see Rates).
Land tax. An individual granted permanent possession of a land plot may be subject to land tax at a fixed rate, depending on the location of the land. For example, in the city of Tashkent, the rates vary from UZS224.8 to UZS568.7 per square meter, depending on the location of the land plot.
Tax on consumption of gasoline, diesel fuel and liquid gas. The tax rates on the consumption of gasoline, diesel fuel and liquid or compressed gas by individuals are UZS335 per liter of gasoline and diesel fuel, UZS230 per liter of liquid gas, and UZS275 per cubic meter of compressed gas. The tax is added to the retail price of fuel and collected at fuel stations.
Social security
Uzbek citizens (as well as foreign citizens permanently living in Uzbekistan) are subject to a pension fund contribution at a rate of 7.5% of their salaries. Employers make mandatory monthly contributions to individual accumulative pension accounts of citizens at a rate of 1% of salaries of employees, and the amounts of such contributions are subtracted from accrued individual income tax. Employers are subject to a unified social fund contribution on the payroll of employees at a rate of 25% (15% for small businesses).
Tax filing and payment procedures
An annual tax declaration must be completed and filed by 1 April of the year following the reporting year. Payment of any additional tax liability must be made by 1 June of the year following the reporting year. An individual leaving Uzbekistan must file a final declaration one month before departure.
Double tax relief and tax treaties
Uzbekistan has entered into double tax treaties with the following countries.
Austria Iran Romania
Azerbaijan Ireland Russian
Bahrain Israel Federation
Belarus Italy Saudi Arabia
Belgium Jordan Singapore
Bulgaria Kazakhstan Slovak
Canada Korea (South) Republic
China Kuwait Slovenia
Czech Republic Kyrgyzstan Spain
Estonia Latvia Switzerland
Finland Lithuania Thailand
France Luxembourg Turkey
Georgia Malaysia Turkmenistan
Germany Moldova Ukraine
Greece Netherlands United Arab
Hungary Oman Emirates
India Pakistan United Kingdom
Indonesia Poland Vietnam
Uzbekistan also honors the double tax treaty between the former USSR and Japan.
To obtain treaty benefits, a written application for treaty relief must be submitted to the Uzbekistan tax authorities on specified forms. The application must be accompanied by certain documents including a certificate from the applicant’s home country tax authorities stating that the applicant is resident in that country.
Temporary visas
In general, all foreign nationals and stateless persons are required to obtain a visa to enter Uzbekistan. The general visa requirements do not apply to the following individuals:
- Nationals of Azerbaijan, Armenia, Belarus, Georgia, Kazakhstan, Kyrgyzstan (if up to 60 days), Moldova, the Russian Federation and Ukraine
- Passengers in transit who continue their journey within 24 hours by the same or first connecting aircraft if they hold valid onward and return documentation and if they do not leave the transit area
- Nationals of countries with which Uzbekistan has respective intergovernmental agreements
The visa requirements are subject to frequent changes. Consequently, individuals should verify them before planning a trip to Uzbekistan.
Business visa. In general, to obtain a business visa to Uzbekistan, a visa applicant should submit the following documents to the relevant consular office of Uzbekistan:
- Invitation letter from the hosting organization (for example, a business partner or an Uzbek company) that is duly processed through the Ministry of Foreign Affairs of Uzbekistan in Tashkent (not applicable to citizens of Austria, Belgium, the Czech Republic, France, Germany, Italy, Japan, Latvia, Malaysia, Spain, Switzerland, Thailand and the United Kingdom)
- Two copies of the completed and signed visa application form
- Valid passport or document of a stateless person
- Two passport-size pictures
- Proof of visa fee payment unless a visa fee exemption has been established by an intergovernmental agreement between Uzbekistan and the respective foreign country, and/or Uzbekistan legislation
Incomplete visa applications are not accepted. A personal interview with an applicant may be required. Visas are issued within two working days to citizens of Austria, Belgium, the Czech Republic, France, Germany, Italy, Japan, Latvia, Malaysia, Spain, Switzerland, Thailand and the United Kingdom. For citizens of other countries, the processing of business visa applications may take up to 10 calendar days.
Private invitation visa. In general, in order to obtain a private invitation visa to Uzbekistan, a visa applicant should submit the following documents to the relevant consular office of Uzbekistan:
- Original letter of invitation (faxes or copies are not accepted) from the inviting person that has been approved by the local department of the Ministry of Internal Affairs of Uzbekistan and processed through the Ministry of Foreign Affairs of Uzbekistan (not applicable to citizens of Austria, Belgium, the Czech Republic, France, Germany, Italy, Japan, Latvia, Malaysia, Spain, Switzerland, Thailand and the United Kingdom)
- Two copies of the completed and signed visa application form
- Valid passport or a document of a stateless person
- Two passport-size pictures
- Proof of visa fee payment unless a visa fee exemption has been established by an intergovernmental agreement between Uzbekistan and the respective foreign country, and/or Uzbekistan legislation
Incomplete visa applications are not accepted. A personal interview with the applicant may be required.
Transit visa. In general, an individual traveling through Uzbekistan to another country needs a transit visa for Uzbekistan. To obtain a transit visa, a visa applicant should submit the following documents to the relevant consular office of Uzbekistan:
- Two copies of the completed and signed visa application form
- Valid visa to the country of destination
- Confirmed round-trip ticket
- Valid passport or a document of a stateless person
- Two passport-size pictures
- Proof of visa fee payment unless a visa fee exemption has been established by an intergovernmental agreement between Uzbekistan and the respective foreign country, and/or Uzbekistan legislation
Incomplete visa applications are not accepted. A personal interview with an applicant may be required. Transit visas are issued within three calendar days after the date of application.
Additional information. In general, if an individual’s stay in Uzbekistan exceeds three days excluding public holidays and non-working days, he or she is required to register with the local department of the Ministry of Internal Affairs within three business days after arrival. A registration stamp is affixed on the individual’s passport. The following are significant aspects of registration:
- If the individual stays in a hotel, the hotel administration registers the individual automatically.
- If the individual stays in a private apartment or house, he or she should be registered with the local department of the Ministry of Internal Affairs in the district where this apartment or house is located.
- A fee for registration amounts to USD20 or more, depending on the length of stay.
An individual’s passport is checked on departure from Uzbekistan. Failure to register may lead to administrative liability of a foreign national in the form of a fine of up to 100 minimum monthly wages (approximately USD4,400) or deportation from Uzbekistan.
Work visas and permits and self-employment
A foreign citizen may work in Uzbekistan only if he or she obtains through his or her Uzbek employer a confirmation for the employment (work permit) and if his or her Uzbek employer obtains a license for employment of foreign specialists (license).
The Consular Department of the Ministry of Foreign Affairs of Uzbekistan issues a work visa to a foreign citizen only if the foreign citizen and his or her Uzbek employer obtained the work permit and license.
Uzbek law does not contain any measures allowing a foreign citizen to be self-employed in Uzbekistan.
Residence visas
The local offices of the Ministry of Internal Affairs of Uzbekistan can issue residence visas to foreign citizens permanently residing in Uzbekistan on the submission of the package of required documents.
The residence visa is issued for up to five years and can be renewed five times for the same period.
Family and personal considerations
Family members. The spouse and dependents of a working expatriate should obtain separate work permits to be legally employed in Uzbekistan. In addition, they should apply for their entry visas independently of the employed expatriate.
Marital property regime. Property acquired by a couple during marriage is considered their common property unless the law or a marital agreement provides otherwise. In addition, property gifted to or inherited by one of the spouses is considered the personal property of that spouse.
Forced heirship. Under Uzbek succession law, a testator is free to give by will his or her property in any manner he or she sees fit.
Driver’s permits. A foreign citizen of a member country of the Vienna Convention on Road Traffic of 1968 may drive legally in Uzbekistan with his or her home country driver’s license on obtaining an official translation of the driver’s license from the Diplomatic Service under the Ministry of Foreign Affairs of Uzbekistan. The official translation applies for the period of accreditation of the foreign citizen, which usually does not exceed one year.