From 1 January 2026, legal entities switching from turnover tax to VAT for the first time will receive a 1-year corporate tax exemption, a 1-year waiver of VAT registration penalties, and a six-month deduction on accounting expenses.
Uzbekistan’s President has issued DP No. 138 on August 19, 2025, which includes various tax incentive measures aimed at promoting entrepreneurship from 1 January 2026.
Legal entities transitioning from turnover tax to VAT for the first time will receive several tax incentives, including a one-year exemption from corporate income tax, a one-year exemption from penalties for failing to register as a VAT payer, and a corporate income tax deduction for up to six months of accounting expenses, capped at 3.5 times the minimum monthly salary.
Taxpayers will no longer need to prepare reports for corporate property tax, land tax, individual income tax, or social security tax, as this responsibility will be shifted to the tax authorities. Taxpayers can also amend the tax reports generated by the authorities within five business days and submit the revised versions.
Additionally, companies with total income exceeding UZS 20 billion in the previous tax year (up from UZS 10 billion) will be required to make monthly advance corporate income tax payments.
DP No. 138 entered into force on 23 August 2025.
