Corporate Income Tax in Uzbekistan

Standard CIT rate — 15%

The standard corporate income tax rate in Uzbekistan is 15% — applicable to most Uzbek legal entities and foreign legal entities operating through a permanent establishment in Uzbekistan. CIT is levied on taxable profit — gross income less deductible expenses as defined by the Tax Code. Presidential Decree No. UP-229 dated 27 December 2024 provides that CIT and VAT rates will not be increased before 1 January 2028.

Sector-specific CIT rates

The following sector-specific CIT rates apply under the Tax Code: 20% — banks, producers of polyethylene granules, taxpayers whose main activity is mobile communication services, and profit from services of markets and shopping complexes (Tax Code, Art. 337); 2% (with social tax at 1%) — businesses manufacturing garments and knitwear, footwear and leather goods (from 1 January 2025 to 1 January 2028, if all conditions are met, including at least 70% of income from such products; Decree No. UP-229, para. 2, as amended by Decree No. UP-174 of 19 September 2025); 50% reduction — entities in the electrical industry where at least 80% of revenue derives from electrical product sales (until 1 January 2027). A 50% reduction of the standard rate is available to a taxpayer whose aggregate income first exceeds UZS 10 billion after 1 September 2022, for that tax period and the next, subject to conditions (Tax Code, Art. 337).

IT Tech Park — CIT exemption

Residents of the Uzbekistan IT Tech Park — established by Presidential Decree No. UP-5099 dated 30 June 2017 — are entitled to income tax exemption until 2028. From 1 January 2028 to 1 January 2040, residents with exports above 50% of income and qualifying IT education providers are exempt from all taxes except VAT. From 1 February 2025 to 1 January 2030, non-resident companies with export services above USD 10 million a year, other than tax residents of treaty states, are exempt on income from IT services to IT Tech Park residents (Tax Code, Art. 483).

SEZ CIT exemptions

SEZ participants are exempt from CIT by amount invested: USD 3–5 million for 3 years, USD 5–15 million for 5 years, USD 15 million or more for 10 years, running from commissioning of the facility and only for the activities in the investment agreement. Taxpayers that become participants from 1 April 2026 receive accelerated depreciation for the same periods instead (Tax Code, Arts. 473 and 474).

Deductible expenses — key items

Deductible expenses for CIT purposes include: business expenses incurred in generating taxable income; depreciation on fixed assets at rates prescribed by the Tax Code; salary costs and social tax; interest on borrowings (subject to transfer pricing limits on related-party debt); and professional fees. Non-deductible items include dividends paid to shareholders, penalties and fines, and expenses without supporting documentation.

Permanent establishment — non-residents

Foreign companies conducting business activities in Uzbekistan without a registered entity may create a permanent establishment (PE) — triggering CIT in Uzbekistan on profits attributable to the PE, a further 10% on net profit after tax, which a treaty may reduce (Tax Code, Art. 347), and a duty to register with the tax authority (Art. 130). The PE risk threshold and profit attribution rules follow OECD guidelines as adapted in the Uzbek Tax Code. Bond Stone advises foreign companies on PE risk assessment and on structuring activities to manage PE exposure in Uzbekistan.