UZBEKISTAN \u00a0\u00b7\u00a0 FOREIGN INVESTMENT<\/p>\n
Bond Stone advises foreign investors on profit repatriation from Uzbekistan \u2014 dividend declaration and payment procedures, compliance with Uzbekistan’s currency regulation framework following the 2017 liberalisation, withholding tax obligations, UZS convertibility, and the statutory repatriation right available to EFI status entities under the Law on Investments and Investment Activity No. ZRU-598.<\/p>\n
Primary authority: Law “On Investments and Investment Activity” No. ZRU-598 dated 25 December 2019; Law “On Currency Regulation” of the Republic of Uzbekistan (as amended). Authority: lex.uz<\/a><\/p>\n <\/p>\n Uzbekistan \u2014 Market Context 2025<\/p>\n USD 145B<\/p>\n GDP 2025<\/p>\n<\/div>\n 7.7%<\/p>\n GDP growth 2025<\/p>\n<\/div>\n USD 43B<\/p>\n FDI 2025<\/p>\n<\/div>\n 50+<\/p>\n BITs \u2014 investor protection<\/p>\n<\/div>\n<\/div>\n<\/div>\n 2017 currency liberalisation<\/p>\n Uzbekistan conducted a significant currency liberalisation in September 2017 \u2014 unifying the official and black-market exchange rates and introducing current account convertibility for the Uzbek som (UZS). Since 2017, foreign investors may freely convert UZS into freely convertible currency and repatriate investment income through the banking system. This reform was a watershed for foreign investment in Uzbekistan \u2014 eliminating the currency convertibility risk that had previously deterred many international investors. Residual currency control obligations remain \u2014 Bond Stone advises on current compliance requirements.<\/p>\n<\/div>\n Statutory repatriation right \u2014 Law No. ZRU-598<\/p>\n EFI status entities have a statutory right under the Law on Investments and Investment Activity No. ZRU-598 to freely transfer abroad: dividends and other income from investments; amounts received from the sale or partial sale of investments; and compensation received in connection with expropriation or nationalisation. This right is exercised after payment of applicable Uzbek taxes. The right is reinforced by Uzbekistan’s BIT network \u2014 most of Uzbekistan’s 50+ BITs contain explicit free transfer of funds guarantees.<\/p>\n<\/div>\n Dividend repatriation procedure<\/p>\n The dividend repatriation procedure in Uzbekistan requires: a participants’ meeting resolution distributing profits; calculation and withholding of dividend withholding tax (10% standard rate under Uzbek domestic law \u2014 subject to DTT reduction); and transfer of the net dividend to the foreign shareholder’s bank account abroad through an Uzbek bank. Bond Stone advises on the procedural requirements, tax optimisation, and documentation for compliant dividend repatriation.<\/p>\n<\/div>\n Withholding tax and DTT relief<\/p>\n Dividend payments from an Uzbek entity to a foreign shareholder are subject to 10% withholding tax under Uzbek domestic law. Uzbekistan has concluded double taxation treaties with numerous states \u2014 including China, Germany, France, Russia, UAE, and UK \u2014 which reduce the applicable withholding tax rate on dividends for qualifying shareholders. Bond Stone advises on DTT eligibility analysis as part of every investment structuring mandate.<\/p>\n<\/div>\n Intercompany transactions \u2014 transfer pricing<\/p>\n Intercompany transactions between an Uzbek subsidiary and its foreign parent \u2014 including service fees, management fees, royalties, and intercompany loans \u2014 are subject to Uzbek transfer pricing rules. The arm’s length principle applies. Deductibility of related-party payments is limited where transactions are not at arm’s length. Bond Stone advises on structuring intercompany transactions to comply with Uzbek transfer pricing requirements while achieving commercial objectives.<\/p>\n<\/div>\n<\/div>\n Bond Stone has advised foreign investors on investment structuring in Uzbekistan. Client confidentiality is maintained across all matters.<\/p>\n Dividend Repatriation \u2014 Chinese Parent<\/p>\n Repatriation \u00b7 Uzbekistan \u00b7 China<\/p>\n Advising a Chinese parent company on dividend repatriation from an Uzbek subsidiary \u2014 China-Uzbekistan DTT withholding tax rate, beneficial ownership analysis, participants’ meeting resolution, and bank transfer procedure.<\/p>\n<\/div>\n UZS Conversion \u2014 Currency Compliance<\/p>\n Repatriation \u00b7 Uzbekistan \u00b7 Currency<\/p>\n Advising a foreign investor on UZS to USD conversion for profit repatriation \u2014 2017 liberalisation framework, current account convertibility, residual control obligations, and bank documentation requirements.<\/p>\n<\/div>\n DTT Analysis \u2014 European Investor<\/p>\n Repatriation \u00b7 Uzbekistan \u00b7 Tax<\/p>\n Advising a European investor on applicable double taxation treaty rates for dividend repatriation from Uzbekistan \u2014 beneficial ownership requirements, treaty documentation, and withholding tax optimisation.<\/p>\n<\/div>\n Management Fee Structure \u2014 Transfer Pricing<\/p>\n Repatriation \u00b7 Uzbekistan \u00b7 Corporate<\/p>\n Advising on structuring management fee payments from an Uzbek subsidiary to its foreign parent \u2014 arm’s length analysis, transfer pricing documentation, deductibility assessment, and withholding tax on service fee payments.<\/p>\n<\/div>\n EFI Repatriation Right \u2014 Investment Protection<\/p>\n Repatriation \u00b7 Uzbekistan \u00b7 EFI<\/p>\n Advising an EFI status investor on the scope of the statutory repatriation right under Law No. ZRU-598 \u2014 analysis of covered payment categories, BIT free transfer guarantee complement, and documentation for repatriation.<\/p>\n<\/div>\n Royalty Repatriation \u2014 Technology Licence<\/p>\n Repatriation \u00b7 Uzbekistan \u00b7 Technology<\/p>\n Advising on repatriation of royalty payments from an Uzbek licensee to a foreign licensor \u2014 withholding tax treaty analysis, transfer pricing compliance, and currency control documentation.<\/p>\n<\/div>\n<\/div>\n Uzbekistan \u2014 Investment Framework<\/p>\n \u2726 \u00a0100% foreign ownership permitted in most sectors \u2014 Law No. ZRU-598<\/p>\n \u2726 \u00a0EFI status \u2014 additional protections for qualifying foreign investors<\/p>\n \u2726 \u00a028 SEZs, 389 Small Industrial Zones \u2014 tax and customs exemptions<\/p>\n \u2726 \u00a050+ BITs \u2014 investor-state arbitration and free transfer guarantees<\/p>\n<\/div>\n Uzbekistan \u2014 English Common Law Jurisdiction<\/p>\n Tashkent International Financial Centre (TIFC)<\/p>\n Established March 2026 \u2014 English common law investment framework, TFSA regulator, TICC commercial court, tax exemptions until 2076.<\/p>\n Tashkent International Financial Centre \u2014 full guide \u2192<\/a><\/p>\n<\/div>\n Why Bond Stone<\/p>\n \u2726 \u00a0Tashkent office \u2014 direct engagement with Uzbek investment authorities<\/p>\n \u2726 \u00a0Ranked Legal 500 EMEA and IFLR1000 \u2014 Tashkent and Almaty offices<\/p>\n<\/div>\n Primary authority: lex.uz<\/a><\/p>\n Contact Bond Stone for a confidential discussion about Profit Repatriation & Currency Control in Uzbekistan.<\/p>\n \ud83d\udce7 info@bondstonelaw.com<\/a> Request a Confidential Consultation<\/a>
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\n\u2190 Foreign Ownership & EFI Status<\/a>
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