Despite the fact that taxation in Uzbekistan is quite democratic and significantly facilitates business development in the country, companies still have to pay taxes. The main corporate taxes in Uzbekistan include:

   1. Income Tax

   In Uzbekistan, legal entities are subject to income tax at a rate of 15%. This tax is levied on the company’s total income, both domestically and internationally. For companies with an annual turnover of less than 1 billion soms, a simplified tax regime is available, replacing income tax and VAT with a single turnover tax.

   2. VAT (Value Added Tax)

   The VAT rate in Uzbekistan is 12%. The tax is levied on the value of goods, works, and services sold. Exports of goods are taxed at a zero rate. Certain activities, such as certain educational and medical services, are exempt from VAT. Companies with a turnover exceeding 1 billion soms are required to register as VAT payers.

   3. Withholding Tax

   When paying for services/goods to non-residents, local companies in Uzbekistan are required to withhold tax at the source of payment. Rates vary: 10% for dividends and interest, 20% for royalties, services, and rent payments, etc.

   4. Property Tax

   Companies in Uzbekistan pay a property tax of 1.5% of the value of their real estate. For unfinished construction projects whose construction period exceeds established standards, the rate increases to 3%. The tax applies to buildings, structures, and other real estate located within Uzbekistan.

   5. Social Tax

   Employers are required to pay a social tax of 12% of their employees’ wages. This tax is intended to fund social programs and is levied on the total amount of wages, including payments to both local and foreign workers.