Property tax advance payments: who pays monthly, who pays quarterly, and how is the year-end settlement made?

Unlike corporate profit tax, property tax does not care whether the company did well or badly: if the building stands, there is tax. That is why the Tax Code collects it not in one go at year-end but during the year through advances. This article is about the tax on property of legal entities (Chapter 59 of the Tax Code); the property tax of individuals is in another chapter.

On what and at what rate is the tax calculated?

The object of taxation is immovable property (part two of Article 411): buildings and structures whose rights are subject to state registration; objects whose construction has not been completed within the standard period in the design and estimate documentation (if no such period is set, within twenty-four months from the month the construction permit was obtained); railways, trunk pipelines, communication and power transmission lines, and the structures that are an integral technological part of them; residential properties held for sale on the balance sheet of construction organisations or developers (six months after commissioning). For buildings the base is the average annual carrying amount (Article 412). It is determined as one twelfth of the sum of the carrying amounts on the last day of each month, separately for each object (Article 413).

Two important details:

• Minimum value (Article 412). The base for a building cannot be lower than the following per 1 sq. metre: in Tashkent city 3 530 000 soum; in Nukus city and regional centres 2 350 000 soum; in other cities and rural areas 1 390 000 soum. The Jokargy Kenes of the Republic of Karakalpakstan and the regional Kengashes of People's Deputies may, depending on the economic development of districts, introduce a reducing coefficient of down to 0.5 to this minimum value. These amounts are in the version in force from 1 January 2026.
• Rate (Article 415). The general rate is 1.5 percent, unless the article provides otherwise (separate rates for construction not completed within the standard period and for certain objects are in the same article).

When and on what schedule is the advance paid?

Everything starts with one document at the beginning of the year: the statement of the tax amount. It is submitted on the basis of the expected tax base and rate no later than 20 January of the current year. A newly established company submits it within thirty days of the day of state registration, and a company whose obligation appears during the year, within thirty days of the day the obligation arose (part five of Article 417).

Then the schedule splits in two depending on the type of taxpayer (part six of Article 417):

Non-residents that do not operate in Uzbekistan through a permanent establishment do not pay advances: they pay the tax once a year, by 15 February of the following year (Article 417).

Example 1: monthly advance and the year-end difference

"Shayxontohur Poligraf" LLC is in Tashkent and pays VAT and corporate profit tax. It has one 400 sq. metre printing house building (2026, everything hypothetical, no exemptions).

Statement (by 20 January). Expected average annual carrying amount 2 400 000 000 soum. Minimum value check: 400 × 3 530 000 = 1 412 000 000 soum; the base is higher than that, so the base is 2 400 000 000 soum. Annual tax: 2 400 000 000 × 1.5% = 36 000 000 soum, monthly advance 3 000 000 soum (January's by 20 January, the rest by the 10th day of each month).

During the year. In May a reconstruction of the building was completed and the carrying amount increased. Actual carrying amounts at month-end (mln soum):

Sum 29 370 mln soum, average annual carrying amount 29 370 ÷ 12 = 2 447 500 000 soum. Actual tax: 2 447 500 000 × 1.5% = 36 712 500 soum. The advances were 36 000 000 soum, so 712 500 soum is paid additionally by the deadline of the annual return, which is filed by 1 March 2027 (parts two and eight of Article 417).

After May the company was entitled to submit a revised statement; in it the amount of the change in tax would have been spread in equal shares over the advances of the remaining months of the year (part seven of Article 417). This is a right, not an obligation.

The 10 percent rule. If the advances are more than 10 percent lower than the tax in the return, the tax authority recalculates the advances on the basis of the actual amount and charges late payment interest (part nine of Article 417). In our case the shortfall is 712 500 ÷ 36 712 500 = 1.94%, well below the threshold. But had the statement shown 30 000 000 soum, the shortfall would have been 6 712 500 ÷ 36 712 500 = 18.28%, and a recalculation would have been inevitable.

Line 1 of paragraph 275 of NAS No. 21 gives the entry Dt 9430 – Ct 6410 for taxes relating to period expenses; that line is applied in the example. Set in the company's accounting policy which expense item property tax is included in.

Example 2: quarterly advance and the minimum value

"Chust Pichoq Savdo" LLC is a turnover tax payer and has a 120 sq. metre shop in the city of Chust (not a regional centre). The shop's expected average annual carrying amount is 100 000 000 soum (hypothetical, assumed to have no reducing coefficient).

The advances are paid by 20 March, 20 June, 20 September and 20 December. If the company believes 1 sq. metre of the building is worth less than this, it is entitled to carry out an independent valuation; the result of the valuation is recognised as the tax base (Article 412).