New Tax Code in Uzbekistan


Unicase would like to pay your attention to the proposed changes in tax regulation of Uzbekistan that were discussed during the ‘Round table’ organized by the Chamber of Commerce and Industry of Uzbekistan on December 5, 2019.

First of all, it is necessary to note that in accordance with Doing Business 2020 which is prepared by the World Bank Group – ‘Uzbekistan is among 20 economies where the business climate improved the most’. This is due to the fact, that any amendments which are introduced by the government of Uzbekistan goes in line with the best international practices. In particular, it is worth to note that the new Tax Code is based on the accepted accounting and tax principles in compliance with the international tax practice standards.

Tax Refund 
Starting from January 1, 2020 the government is planning to introduce the mechanism of tax refund. In particular, in case of positive court decision or the decision of the higher tax authority on the tax refund which was implied upon the tax audit, the tax payer shall be additionally compensated by the key interest rate of the Central Bank of Uzbekistan alongside with the refunded tax payments.

Risk-Based grouping of taxpayers 
Beginning from January 1, 2020 it is planned to conduct the tax audit in accordance with risk-based grouping of taxpayers. This leads to execute the audit without any necessity to establish the in-office or the field tax audits.

Electronic Invoicing 
In accordance with the Order of the Cabinet of Ministers of Uzbekistan ‘On measures of improvement of enjoyment of electronic invoicing’ dated June 25, 2019 beginning from 2020 all the legal entities have to introduce the electronic invoicing.

New in income tax
In accordance with draft Tax Code of Uzbekistan, it is planned to revise the income tax calculation. In particular, as of the current date, the income tax is based on calculation of the product and service sales income as well as other types of the income. The new Tax Code prescribes that this calculation shall be based on all the income in any form but with its detailed specification.

Moreover, there are the amendments in respect of advance income tax payments. Beginning from 2020, it is specified that advance income tax payments shall be executed only by the taxpayers with the overall income for the previous year more than 5 billion som. Additionally, this payments shall be calculated by the tax authorities, not by the taxpayers.