Q&A: tax

You have 10 working days. This is the procedure of Article 121¹: an organization or individual entrepreneur with tax arrears may ask for them to be collected from its debtor. A debtor is a person who owes it money, in this case you (you owe the supplier). The article was introduced by Law No. ZRU-1108 and has applied since 1 January 2026.

Stages of the procedure:

The biggest risk is staying silent. If no reasoned refusal is given, or the notice is left unanswered, the receivable is considered acknowledged and consent to collection is considered given. A signed statement, for its part, is a basis for directing collection at you whether or not the creditor (the supplier) has signed. The same procedure applies where the tax authority itself identified your debt (from data it holds or from the results of an audit): the notice is sent to you and to the supplier within 3 working days of the day the debt is identified; you and the supplier have 10 working days from receipt of the notice to confirm it or to give a reasoned refusal.

Cases where collection is not directed at you (the full list under the article, seven items). Here the "debtor" is you: 1. You have given a reasoned refusal of the amount of the debt. 2. The limitation period has expired. 3. A court act on this very amount to be collected from you is with the compulsory enforcement body; or the period for presenting it for enforcement has expired; or enforcement actions have been suspended, terminated or postponed, or are being carried out in instalments. 4. The debtor is not a taxpayer of the Republic of Uzbekistan. 5. The debtor is an individual. 6. The debtor is in liquidation, or insolvency proceedings have been opened against it. 7. The debtor's activity has been terminated or it has been removed from the state register of legal entities.

If you have already paid the supplier, submit documents proving it (the payment order, a bank statement): the tax authority then withdraws the collection order without execution within 3 working days at the latest. A court decision produces the same result. Execution of the collection order, collection, or withdrawal without execution is carried out under the procedure of Article 121.

Example (compiled by the author, hypothetical figures). "Tolmas savdo" LLC owes "Bahor metall" LLC 45 million soums. "Bahor metall" has tax arrears of 30 million soums. The collection limit is the smaller of the two amounts: 30 million soums. With other ratios:

Accounting: when the money is debited from the bank account and you and the supplier acknowledge the debt for that amount as settled, the entry is: Dt 6010 – Ct 5110 (content of the line: settlement of debt to suppliers; NAS No. 21, paragraph 226, line 15). The standard's examples have no ready-made line for the entry on the supplier's side, so it is not given here. Whether your debt under the contract is legally reduced by this amount lies outside this article: confirm it with your contract lawyer.

Practical tip: appoint someone responsible for checking the personal account every day. The response deadline (10 working days) runs from the day the notice is received.

Source: Tax Code, Article 121¹; NAS No. 21, paragraph 226.

They can. A taxpayer is entitled to participate in tax relations through a legal or authorised representative (Tax Code, Article 24, Part One). The representative's powers must be confirmed by a document (Part Two).

Who cannot be a representative: officials of the tax, finance, customs and other state bodies (Part Nine).

One more important rule: the actions or inaction of the legal representative — the director — in tax relations are deemed the actions of the legal entity itself (Part Five). In other words, a return signed and filed by the director is the company's own return.

Example (prepared by the author). "Bog'ishamol non" LLC concluded a bookkeeping services contract with the firm "Hisob-Pro". A separate section was added to the contract: which tax returns the firm files, which requests of the tax authority it answers, and when the authority expires. This section serves as the document confirming the authority; if he wishes, the director may also issue a separate power of attorney.

Practical tip: since the relationship with the representative is based on a contract, write into the contract in advance at whose expense the consequences of an erroneous return (late payment interest, fines) are covered.

Source: Tax Code, Article 24.

Neither piece of information you are asking about is a tax secret. Under Article 29 of the Tax Code, information about a taxpayer obtained by the competent bodies constitutes a tax secret, except for the following (Part One, full list):

1. Information that is accessible to everyone, including information made accessible with the owner's consent.
2. The taxpayer identification number (TIN).
3. Violations of tax legislation and the liability measures for them.
4. The tax regime applied and registration as a VAT payer.
5. The amounts of taxes paid and of tax arrears.
6. The participants of the legal entity.
7. The average headcount of employees.
8. The amounts of income and expenses according to the financial statements.

Information not on the list is a tax secret, and state bodies, their officials, and engaged specialists and experts may not disclose it except in cases provided for by law (Part Two). The use or transfer to others of a trade secret that became known to an official of a state body in the course of performing his duties is also deemed disclosure of a tax secret (Part Three).

Example (prepared by the author). "Chust pichoq" LLC wants to supply goods worth 120 million soums to a new wholesale buyer with a 90-day deferral. Before the contract it asked the buyer for three things: the TIN, the amount of tax arrears and the amount of income in the latest annual financial statements. All three are on the list of exceptions in Article 29, so this request breaches no one's secret. If the buyer has large tax arrears, collection may be directed at its bank account (Tax Code, Articles 120 and 121) — this signals to you a risk of payment delay.

Tip: request the information from the buyer in writing and keep the reply together with the contract documents.

Source: Tax Code, Articles 29, 120 and 121.

Article 91 of the Tax Code governs exactly this situation.

Who pays and from what money: - The liquidator performs the tax obligation of the legal entity being liquidated from its cash, including the money received from selling its property (Part One). - If the money is insufficient, the unpaid arrears may be paid off by the participants in the amount and manner established by law (Part Two). - The order in which tax arrears are paid among settlements with other creditors is determined by civil legislation (Part Three).

What happens to the overpayment: - The tax authority offsets it against arrears on other taxes (Part Four). - If there are arrears on several taxes, the amount is distributed in proportion to the arrears or by decision of the liquidator (Part Five). - If there are no arrears at all, the overpayment is refunded no later than fifteen days from the day the application is filed. If no application is filed, after the taxpayer is removed from the unified register this amount is written off the personal account (Part Six). In other words, if you do not apply, the money really is lost.

Example (prepared by the author, amounts are illustrative). "Qorako'l teri" LLC has: VAT arrears of 18 million and property tax arrears of 6 million soums; an overpayment of profit tax of 4 million soums. The liquidator chose proportional distribution:

The property was sold and 14 million soums came in. Under Part Two, the question of the remaining 6 million soums is resolved with the participants.

Source: Tax Code, Article 91.

The risk is serious, so make the decision knowing the conditions. When the deadlines for performing a tax obligation are changed, payment of tax may be secured by a surety (Tax Code, Article 108, Part One).

Main rules of suretyship (Article 108): - The surety undertakes to perform the obligation in full if the taxpayer does not pay the tax and late payment interest on time (Part Two). - Suretyship is formalised by a contract between the tax authority and the surety (Part Three). - If the company does not pay, the surety and the company are jointly and severally liable (Part Four): the tax authority may demand the amount from either of them. - The tax authority sends the surety a demand within five days from the day the deadline for meeting the demand for payment of tax expires (Part Five). If the surety does not pay either, compulsory collection measures are applied to him (Part Six). - A surety who has paid acquires the right to claim from the company the amount paid, interest on it and the losses incurred (Part Seven). - The surety may be a legal entity or an individual, and several sureties for one obligation are also allowed (Parts Eight and Nine).

Example (prepared by the author, amounts are illustrative). "Kattaqo'rg'on yog'" LLC was granted a deferral on 40 million soums of tax, and director Akmal Sobirov became surety. The deadline passed, the firm did not pay, and late payment interest reached 1.2 million soums. After the demand deadline expired, within five days Akmal received a demand for 41.2 million soums. If he pays, he can then claim this amount with interest from the firm — but since the firm has no money, this right may turn out to be worthless in practice.

An alternative is a bank guarantee (Article 109). Five requirements apply to the guarantee (Part Three, full list): 1. It must be irrevocable and non-transferable. 2. It must not contain any instruction for the tax authority to submit to the guarantor documents not provided for in Article 109. 3. Its term, unless the Code provides otherwise, must expire no earlier than six months after the day the deadline for paying the tax secured by the guarantee passes. 4. The guarantee amount must ensure full performance of the obligation to pay the tax and late payment interest. 5. It must provide that, if the bank does not meet the demand on time, the tax authority applies measures to collect the secured amount from the bank.

Here the risk is borne by the bank, not the director.

Source: Tax Code, Articles 108 and 109.

You are. The official conducting the audit is entitled to demand from a counterparty documents relating to the activity of the taxpayer being audited (Tax Code, Article 147, Part One).

How the demand reaches you (Article 147): 1. The auditing tax authority sends an order to the tax authority where you are registered. It states for which tax control measure the documents are needed and, if a specific transaction is requested, information allowing it to be identified (Part Three). 2. Your tax authority sends you a demand within three days from the day the order is received and attaches a copy of the order to it (Parts Four and Five). 3. Within five days from the day the demand is received you submit the documents or report that you do not have them. If you cannot make it, you may ask for an extension by petition (Part Six).

How the documents are submitted: in person or through a representative, by registered mail, or electronically via telecommunication networks or the personal account; on paper — as copies certified by you, and notarisation of them may not be required (under Part Seven of Article 147, the rules of Parts Three to Five and Eleven of Article 146 apply).

Can you refuse? The Code provides a right to refuse in one case: if the demand does not comply with the rules of Article 147 (last part). An example of such a case: no copy of the order is attached to the demand.

Checklist (prepared by the author):

Example (prepared by the author). "Yangiyer g'isht" LLC was asked for three waybills from Q3 2026 relating to its buyer "Sirdaryo qurilish". The accountant sent certified copies of the contract, the waybills and the reconciliation statement through the personal account and recorded the date of sending.

Source: Tax Code, Articles 146 and 147.

A demand is the tax authority's official notice to you of the amount of arrears and the obligation to pay it within the set period (Tax Code, Article 116, Part One). It is sent regardless of whether you have been held liable.

What the demand must contain (Article 116): the amount of tax arrears; the late payment interest accrued up to the time it is sent; the amount of the fine; the measures to collect the arrears and secure performance of the tax obligation that will be taken if the demand is not met.

The chain of deadlines:

Note: collection from the bank account does not wait for the sixty-day period to expire. If you have not sent a payment order to pay the tax yourself, the tax authority's collection order is placed on your account no later than three working days after the tax payment deadline expires (Article 121, Part Six). Money on a term deposit is not collected until the deposit term expires (Article 121).

Example (prepared by the author). "Qamar Savdo" LLC received the demand on 15 February 2027. The sixty calendar days are counted from 16 February and end on 16 April. The firm checked the amount, found an error in the late payment interest calculation and sent a written appeal to the tax authority; it paid the principal without waiting, because late payment interest grows every day.

Tip: compare the amount in the demand with your own account 6410 data. If there is a difference, give a written explanation immediately — under Article 118, if the amount changes, a clarified demand must be sent or the previous one withdrawn.

Source: Tax Code, Articles 116, 117, 118, 119, 120 and 121.

Yes. Article 121¹ of the Tax Code gives a legal entity and an individual entrepreneur exactly this right: to apply to the tax authority asking for the arrears to be collected from their own debtor (Part One).

The procedure step by step:

1. The application is accompanied by a reconciliation statement of mutual settlements — signed by both parties or only by you (Part One).
2. No later than three working days, the tax authority sends the statement and the documents confirming the debt to the debtor's personal account (Part Two).
3. Within ten working days the debtor confirms the statement or refuses with reasons. If the debtor does not respond, the debt is deemed acknowledged and consent to collection deemed given (Part Three).
4. No later than three working days, the tax authority places a collection order on the debtor's account: the amount exceeds neither your tax arrears nor the debtor's debt (Part Six).

When this route does not work (Article 121¹, full list): the debtor has refused the debt with reasons; the limitation period has expired; a court act on the debt is under compulsory enforcement, the period for presenting it for enforcement has expired, or enforcement has been suspended, terminated or deferred (spread into instalments); the debtor is not a taxpayer of Uzbekistan; the debtor is an individual; the debtor is in liquidation or insolvency proceedings have been initiated against it; the debtor's activity has been terminated or it has been removed from the state register.

Example (prepared by the author).

"Bog'bon Qurilish" did not respond within ten working days, so the debt was deemed acknowledged. The remaining 7,000,000 soums of its debt to "Nurafshon Mebel" remains outstanding.

Important: directing collection at the debtor does not release you from the obligation to pay the tax until the arrears are fully repaid (the last part of Article 121¹).

Source: Tax Code, Article 121¹.

Article 215 of the Tax Code protects you in this situation. It lists four circumstances that exclude a person's guilt in committing a tax offence:

Your case is item 3. If these circumstances exist, the person is not liable (Article 215, Part Three). The explanation is taken into account regardless of the date it was issued, if by its meaning it relates to the period in which the offence occurred.

Two important limitations:

• If the explanation was based on incomplete or inaccurate information you provided, items 3 and 4 do not apply (Part Two). So describe the situation fully and accurately in your request.
• Article 215 releases you from liability. The question of recalculating the tax itself is not governed by this article.

Example (prepared by the author). "Shirin Non" LLC sent the tax authority a request about free lunches for employees, received a written answer and followed it. Two years later an auditor put forward a different interpretation. The firm presented its request letter (which set out all the facts in full) and the tax authority's answer; the question of a fine was closed on the basis of item 3 of Article 215.

Tip: keep written explanations, together with a copy of your request letter, in a separate folder indefinitely.

Source: Tax Code, Article 215.

In the Tax Code these are two different periods, both three years long, but the starting point may differ.

Example (prepared by the author). "Oqtosh Avto" LLC understated its tax base for one tax period in 2023. The period for holding it liable is counted from the day following the end of that tax period and lasts three years (Article 217, Part Three). The decision to hold it liable must be issued within those three years: if it is issued after the period has expired, the fine is not applied.

Practical conclusion: keep the primary documents underlying the tax calculation for at least the limitation period. If you applied a tax relief, bear in mind that under Part Three of Article 88 this period may be extended.

Source: Tax Code, Article 84 (Part Two), Article 88 (Parts One to Four), Article 144 (Part Three), Article 217.

It can. Under Article 14 of the Tax Code, transactions are taken into account for tax purposes not by the name of the contract but by their actual economic substance (Part One).

The main rules of Article 14:

Example (prepared by the author). "Ipak Yo'li Tekstil" LLC received 300 million soums from a buyer and recorded it as an "interest-free loan"; two months later it shipped fabric for that amount and closed the "loan" by offset. The correspondence shows that the buyer placed an order and that the price and shipment date were agreed. In substance this is an advance payment for goods, so the tax authority is entitled to treat it as such. The safest course for the firm is to document the money as an advance payment from the start and calculate tax accordingly.

There is another side too: if both parties have fully performed the contract and only one of the non-tax rules was breached, your expense cannot be disallowed for that reason alone (Part Four).

Source: Tax Code, Article 14.

No, they cannot: the Tax Code sets clear limits on a tax audit.

Note: the text does not say that "thirty days" means calendar days. Under Part Seven of Article 5 of the Code, such a term is counted in working days.

Example (prepared by the author). A tax audit has started at "Oltin Vodiy Tekstil" LLC. The inspector requested export contracts from the company itself, and on that basis the term was extended once by order of the head. Now he wants to request information from a foreign tax authority under an international agreement and extend the term again. This is a different ground (Article 142, Part Three, item 2), so it is allowed. But the term cannot be extended a second time because of another document request to the company itself, and with all the extensions the audit cannot exceed six months.

Tip: keep a record of the day the audit order reached you and every extension order in a separate folder. Check which ground from Article 142 is stated in the extension order.

Source: Tax Code, Article 5 (Part Seven), Articles 141, 142 and 143.

Article 146 of the Tax Code regulates this situation step by step.

1. Deadline. You are given 5 days from the day you receive the request to submit the documents (Part Seven). Since it does not say calendar days, under Part Seven of Article 5 these are working days.
2. If you cannot make it. During the day following the day you received the request, you send a written notice stating why you cannot provide the documents on time and when you will be able to provide them (Part Eight).
3. Response. Within two days of receiving the notice, the head (deputy head) of the tax authority issues a separate decision to extend the deadline or to refuse the extension (Part Nine).
4. Consequence. A refusal to provide documents is recorded in a protocol. A refusal or failure to provide them within the set deadline is a ground for seizing the documents under the procedure of Article 148 (Part Ten).

How to submit the documents:

Example (prepared by the author). "Shohrux Qurilish" LLC received the request on Monday. Of the 60 documents, 52 are in the office and 8 are in the archive of the branch in Samarkand. On Tuesday the accountant sends a notice: 52 documents will be provided within five working days, and 8 within another three working days after they are brought from the branch. Because the notice was sent on time, the deadline question is resolved by the head's decision. A delay without a notice could have been a ground for seizing the documents.

Note: the term of a tax audit may be extended because documents are requested (Article 142, Part Three, item 1).

Source: Tax Code, Article 5 (Part Seven), Article 142, Article 146.

You do. Under Article 77 of the Tax Code, the taxpayer determines its accounting policy for tax purposes independently and approves it in any form. Part Two provides for amending it through the accounting policy (or a section of it) developed in accordance with accounting legislation. So in practice it is convenient to keep it as a separate section of the accounting policy for bookkeeping.

Under Part One, it must reflect the following (full list):

1. The form of the tax registers developed by the taxpayer and the procedure for preparing them (unless the tax legislation provides otherwise).
2. The officials responsible for compliance with the accounting policy.
3. The procedure for keeping separate records, if the Code imposes such an obligation.
4. The chosen methods of including costs in expenses for corporate profit tax and of accounting for VAT.
5. The hedging policy: the hedged risks, items and instruments, and the methodology for assessing hedge effectiveness (if there are hedging and other financial risk operations).
6. Depreciation rates or methods of calculating depreciation: separately for each group and subgroup of assets.
7. How income from Islamic finance activities and from Islamic securities is accounted for separately (this item came into force on 29 June 2026).

When it applies:

Example (prepared by the author). On 20 December 2026, by order, the director of "Ko'k Gumbaz Mebel" LLC changed the depreciation rate for trucks in the tax accounting policy within the limits set by the Code. The new rate applies from 1 January 2027, while December 2026 is calculated at the old rate. Had the director approved the same change in March 2027, with no change in legislation it would have applied only from 1 January 2028.

Source: Tax Code, Article 77.

Under Article 92 of the Tax Code, the tax obligations of the absorbed legal entity are fulfilled by the legal entity that absorbed it, that is, by you (Part Seven).

A successor is also defined for other forms: in a merger, the newly formed entity (Part Six); in a division, the new entities (Part Eight; shares according to the separation balance sheet, Part Nine); in a transformation, the new entity (Part Thirteen). In a spin-off, however, succession generally does not arise (Part Eleven).

Example (prepared by the author, hypothetical figures). "Chinor Savdo" LLC absorbed "Bog'bon Agro" LLC. "Bog'bon Agro" had arrears of 14 million soums and a fine of 2 million soums on one tax, and an overpayment of 5 million soums on another tax.

Since payment deadlines do not change, delaying payment until the merger is completed brings no benefit. Before the merger, obtain the old firm's reconciliation statement with the tax authority: both the arrears and the overpayment are visible in it.

Source: Tax Code, Article 92.

Under Part One of Article 80 of the Tax Code, a taxpayer simultaneously carrying on several activities with different tax regimes must keep separate records of the objects of taxation for each activity. These records are kept on the basis of accounting data, and the income and expenses of each activity are supported by accounting documents (Parts Two and Three).

There are two methods (Part Four):

The chosen procedure is written into the tax accounting policy: under Article 77, Part One, item 3, the procedure for keeping separate records must be reflected in the accounting policy.

Example (prepared by the author, hypothetical figures). In a quarter, "Nurafshon Servis" LLC received revenue of 720 million soums from activity A and 480 million soums from activity B (excluding VAT and excise). Raw materials and direct labour costs were assigned directly to each activity according to documents. Common expenses: office rent of 54 million and chief accountant's salary of 36 million soums.

Tip: keep the allocation table for each period and link the revenue figures in it to the accounting registers, so that it is documented how the allocation was calculated.

Source: Tax Code, Article 77 (Part One, item 3), Article 80.

Article 5 of the Tax Code gives clear rules for calculating time limits. For time limits set in days, five of them matter:

So the day the letter arrives is not counted: the first day is the day after it. Because the limit is "5 working days", days off and non-working public holidays in between are not counted.

Example (compiled by the author). On another matter, "Navro'z savdo" LLC must reply "within 10 calendar days"; the letter arrived on 18 February 2027. The first day is 19 February, the tenth is 28 February. 28 February 2027 is a Sunday, so under Part Eight the time limit ends on the next working day, i.e. 1 March (Monday). Here the limit is stated in calendar days, so the days off in between are counted; only the last day is moved.

Tip: when you put a time limit in the calendar, always answer two questions: "from which day is it counted" and "is it calendar days or working days". If working days have been moved because of a holiday, check the officially announced working calendar.

Source: Tax Code, Article 5.

The Tax Code deals with this in two places.

1. The duty to keep documents. Under paragraph seven of Part One of Article 22, a taxpayer must keep tax reports and other documents needed to calculate and pay taxes intact for three years after the calendar year in which the relevant tax was due (unless the Code provides otherwise). For the tax report itself and the documents attached to it, Part One of Article 84 gives another count: at least three years after the year in which the report was submitted. Keep them until whichever of the two periods ends later.

1. The limitation period. Under Part Two of Article 88, the tax authority's right to carry out an audit and demand additional tax generally lasts three years after the end of the tax period.

There is a separate rule for tax agents: they keep the documents on calculating, withholding and remitting tax for the limitation period set in Article 88 (Article 23).

Example (compiled by the author).

Note: the limitation period changes in two cases. First: if the legislation has made the application of a tax rate, the amount of tax payable, a tax benefit or deduction, or a change in the payment deadline subject to certain conditions (Part Two of Article 84), the limitation period is extended by the period during which those conditions apply (Part Three of Article 88). Second: the running of the period is suspended, interrupted and restored in accordance with civil legislation (Part Four of Article 88). Supporting documents for such a conditional benefit must be kept for at least three years after the year in which the conditions cease to apply (Part Two of Article 84).

Tip: keep the documents for periods with a tax benefit, an audit or a dispute in a separate folder even after the general period has passed. The retention period for accounting documents may also be set by other legislation, so check that too before destroying anything.

Source: Tax Code, Article 22 (Part One, paragraph seven), Article 23, Article 84 (Parts One and Two), Article 88.

If there was enough money in the account, you were not late. Under clause 1 of Part Three of Article 89 of the Tax Code, a taxpayer's obligation to pay tax is considered fulfilled from the moment an order to transfer money from its bank account is submitted to the bank. There is one condition: on the day of payment the account must have a sufficient balance.

The time limit is set by Part Nine of Article 5: an action for which a time limit is set may be performed until midnight (hour 24) on the last day.

But there are also cases in which the payment is not recognised as made (Part Four of Article 89):

These rules also apply to late payment interest and fines, and to tax agents (Part Five of Article 89).

Example (compiled by the author). "Oqtosh qurilish" LLC had 48 million soums in its account. On the last day, at 21:40, the accountant sent a tax payment order for 36 million soums. There was enough money, so the obligation was fulfilled that same day. Had the accountant got a single digit of the treasury account number wrong, the payment would have been treated as not made under clause 3.

Tip: if you pay on the last day, check the details against a template before sending and make sure there is no file of pending claims against the account.

Source: Tax Code, Article 5 (Part Nine), Article 89 (Parts Three, Four and Five).

To November. Under Part One of Article 242 of the Tax Code, the date of turnover for a sale of goods is the date the invoice is presented. But if the goods were shipped earlier, the shipment date is used. In other words, whichever of the two dates comes first is taken. The VAT tax period is generally one month (Article 259).

Article 242 has separate rules for other cases (complete list):

In addition, the rule set for services also applies to services that begin in one tax period and end in another (Part Five).

Example (compiled by the author). On 30 November "Bodomzor qandolat" LLC shipped products worth 56 million soums (including VAT). VAT = 56,000,000 × 12 / 112 = 6,000,000 soums. This amount goes into the November report, even though the invoice was issued in December. If the accountant puts it into December, the tax for November will be understated.

Tip: at the end of the month, compare the list of waybills for goods that left the warehouse with the invoices issued that month — shipments with a "late" invoice show up immediately.

Source: Tax Code, Articles 242 and 259; general VAT rate 12%.

If Uzbekistan is found to be the place of supply of the service (this is determined under Article 241), you pay the VAT as a tax agent. Under Article 255 of the Tax Code, the tax agent is the buyer of such a service that is a legal entity of Uzbekistan, an individual entrepreneur, or a foreign legal entity operating in Uzbekistan through a permanent establishment (Part Two; Part Four has a separate rule for electronic services). It must calculate, withhold and remit the tax to the budget (Part Six).

Two cases are distinguished:

Example (compiled by the author). "Ipak yo'li logistika" LLC received a consulting service worth 120,000,000 soums from a foreign firm, price excluding VAT.

• VAT = 120,000,000 × 12% = 14,400,000 soums. The foreign firm is paid 120,000,000 soums, and the VAT is remitted to the budget separately.
• If the contract had said 120,000,000 soums including VAT: VAT = 120,000,000 × 12 / 112 ≈ 12,857,143 soums, and the remaining 107,142,857 soums would have been transferred to the firm.

The payment document for this VAT paid to the budget gives the right to claim it as input VAT (last part of Article 255, in accordance with the rules of Chapter 37).

Note: this procedure does not apply to the exempt goods and services listed in Articles 243–245.

Source: Tax Code, Article 255; general VAT rate 12%.

Yes, it will. Under Part Three of Article 333 of the Tax Code, a taxpayer that incurred a loss in the previous tax period (periods) may reduce the profit of the current tax period by the whole amount of that loss or by part of it. The company itself decides how much to use.

This is about the tax loss, not the accounting loss. Under Part One of Article 333, a loss is the excess of deductible expenses over total income, taking into account the adjustments made to income and expenses. So take the amount from the corporate profit tax calculation, not from the statement of financial results.

The other rules of Article 333:

1) The tax base is reduced by a prior-period loss only on the results of the current tax period. For corporate profit tax the tax period is the calendar year and the reporting period is the quarter (Article 338).

2) If losses were incurred in several years, they are carried forward in the order in which they were incurred: the oldest first.

3) Losses on transactions with traded securities and traded financial instruments of forward transactions are also treated as losses from business activity.

4) Losses of a subsidiary that receives bad debts from its parent bank are not carried forward.

5) The current text of the article sets neither a carry-forward period nor a percentage cap on how much of the profit may be reduced (Parts Four and Five were deleted by Law No. O'RQ-741 of 29 December 2021).

Special cases are in Articles 334–336. Article 334: on reorganisation the loss is allocated among the legal successors in proportion to the share of assets transferred under the separation balance sheet; losses that the successor itself took over from a taxpayer that had earlier ceased its activity are not carried over when the successor is reorganised again. Article 335: the loss of a consolidated group is carried forward by the group's responsible participant against the consolidated tax base; a participant that leaves the group cannot carry the loss of the group period forward against its own base. Article 336: losses on certain transactions are covered only by similar income — a loss under trust management is carried forward to the future income of that trust management, a loss of a simple partnership to the partnership's future income, a loss of service units to the future income of those units, a loss on non-traded securities and financial instruments against income from the same kind of transactions, and a loss on the sale of an enterprise as a property complex or of a share in the charter fund against income from the sale of identical assets.

Example (prepared by the author). Assume «Bahor Mebel» LLC pays corporate profit tax as one of the "other taxpayers", i.e. at 15% (Item 12 of Part One of Article 337).

2024: tax loss of 150 million soums. No tax; the loss is carried forward.

2025: tax base (before the loss carry-forward) of 90 million soums. The company uses 90 million soums of the 2024 loss: base 0, tax 0. Remaining loss: 150 − 90 = 60 million soums.

2026: base of 200 million soums. The remaining 60 million soums is deducted: 200 − 60 = 140 million soums, tax 140 × 15% = 21 million soums.

Without the carry-forward, tax for the two years would have been 90 × 15% + 200 × 15% = 13.5 + 30 = 43.5 million soums. With it, 21 million soums. The difference is 22.5 million soums, i.e. 15 percent of the 150 million soum loss.

Practical tip: keep a small table for each year — "loss incurred, amount used, amount remaining". If you have losses from several years, the ordering rule means it is always clear which year's loss is being used.

Land tax on legal entities is governed by Chapter 61 of the Tax Code, and the exemptions by Article 428. In the current version, Part One of Article 428 lists 12 categories of land that are not taxed:

1) Land occupied by culture, education, healthcare and social security facilities. Exception: land occupied by sanatorium and resort facilities located in tourist zones does not qualify.

2) Land occupied by sports and physical fitness and health complexes, training bases and children's health camps.

3) Land occupied by urban electric transport tracks and metro lines, including public transport stops, metro stations and their structures.

4) Land occupied by water supply and sewerage facilities of settlements: trunk water pipelines, water supply networks, sewage collectors and their structures, pumping stations, water intake and treatment facilities, inspection wells and culverts (dukers) on the networks, water towers and similar structures.

5) Land occupied by trunk heating mains, including pumping (booster, pressure-reducing, mixing, drainage) stations, heat metering and control devices of hot water supply, heaters, circulation pumps and similar structures.

6) Land occupied by protective forest plantations. The Code lists 11 types: prohibited forest belts along the banks of water bodies; prohibited forest belts protecting the spawning grounds of valuable commercial fish; anti-erosion forests; protective forest belts along railways and roads; forests in desert and semi-desert zones; urban forests and forest parks; forests around the green zones of cities, settlements and industrial centres; forests in sanitary protection zones of water supply sources; forests in sanitary protection districts of resort areas; especially valuable forests; forests of scientific or historical importance.

7) Land where water-saving (drip, sprinkler, discrete and other) irrigation technologies have been introduced — for five years from the start of the month of introduction, on the basis of an opinion of the authorised body for water use. If within those five years the technology becomes unusable or is dismantled, the exemption is cancelled for the whole tax period and the tax liability is restored.

8) Land newly developed for agricultural purposes — under a project approved by the authorised body, during the development works and for five years after development.

9) Existing irrigated land where land reclamation works are carried out — under an approved project, for five years from the start of the works.

10) Agricultural land and forest fund land of experimental, pilot and teaching-experimental farms of scientific organisations, agricultural and forestry research organisations and educational institutions, used directly for scientific and educational purposes. More precisely, plots occupied by crops and plantations used for scientific experiments, experimental work, breeding of new varieties and other scientific and educational purposes with approved topics are exempt (this paragraph is in a new version from 19 July 2026).

11) Plots in rural areas (other than the centres of cities and districts) occupied by antenna-mast metal structures and the structures mounted on them that form an integral part of them.

12) Plots occupied by free-standing renewable energy installations: with a total capacity of up to 100 kW — for three years from the month of commissioning, and for solar panels installed with an energy storage system of at least 25 percent of the panels' capacity — for ten years; 100 kW and above — for ten years.

Reduced rate (Part Two of Article 428): for plots occupied by newly planted orchards, vineyards and mulberry plantations, tax is paid for five years at a rate reduced by 50 percent, regardless of whether the space between rows is used for agricultural crops. The same part contains a reverse rule: if within 12 months of the day the authorised body found an orchard or vineyard economically inefficient and low-yielding a new orchard (vineyard) has not been planted, the rate is tripled.

When the period starts (Part Three): for seedlings planted in autumn — from 1 January of the following year; for those planted in spring — from 1 January of the current tax period.

General condition (Part Four): the exemptions of Article 428 do not apply to land plots that are not used directly for their intended purpose.

One more warning from Article 429: for a plot occupied by an unfinished construction project (unless legislation provides otherwise), exemptions and reducing coefficients do not apply until construction is completed, and tax is paid at double the rate.

Practical tip: keep the area of each exempt plot, the basis of the exemption (for example, the authorised body's opinion) and the expiry date in one list. Under Article 427, when the right to an exemption arises, the tax base is reduced from that month, and when the right ends it is calculated again from the following month.

No, the unit is wrong. The heading of the table in Part One of Article 429 of the Tax Code reads: "Base tax rate per 1 hectare (million soums)". So 319.0 means 319.0 million soums per 1 hectare. Since 1 hectare is 10,000 sq. m, that is 31,900 soums per 1 sq. m — 100 times more than "319 soums". These rates apply to non-agricultural land, and this version took effect on 1 January 2026.

Base rates for the city of Tashkent (per 1 hectare, million soums; per 1 sq. m in brackets): zone 1 — 319.0 (31,900 soums); zone 2 — 254.2 (25,420 soums); zone 3 — 196.6 (19,660 soums); zone 4 — 130.6 (13,060 soums); zone 5 — 65.9 (6,590 soums).

Other territories have a single base rate each (per 1 hectare, million soums): Republic of Karakalpakstan — 41.2; Andijan region — 51.8; Bukhara — 42.4; Jizzakh — 42.4; Kashkadarya — 42.4; Navoi — 42.4; Namangan — 51.8; Samarkand — 51.8; Surkhandarya — 37.7; Syrdarya — 31.8; Tashkent region — 43.5; Fergana — 43.5; Khorezm — 42.4.

The actual rate is obtained with a coefficient (Part Two of Article 429). The Jokargy Kenes of the Republic of Karakalpakstan and the regional councils apply coefficients from 0.5 to 2.0 to the base rate and set rates by district and city. District and city councils then apply coefficients from 0.7 to 3.0 to those rates — and in the city of Tashkent directly to the base rate — by daha, massif, mahalla and street. District and city councils submit the rates to the tax authorities every year by 10 January, and the tax authorities communicate them to taxpayers within five days (Part Three). So take the rate for a specific plot not from the table, but from the information provided by the tax authority.

Agricultural land: the rate is 0.95 percent of the standard value of agricultural land (Part Four of Article 429). The Jokargy Kenes of the Republic of Karakalpakstan, the regional councils and the Tashkent city council may apply coefficients from 0.5 to 1.2 to this rate.

The 0.48 coefficient (Article 429) applies to land occupied by: power transmission lines, their substations and structures; national communication lines and structures; public railways (with stations, marshalling yards and protective plantations granted to railway enterprises); trunk oil and gas pipelines and their stations; aircraft runways, taxiways, parking areas, radio navigation and lighting equipment of civil aviation airports; land allocated for the construction of facilities included in state development programmes — for the standard construction period; land of facilities mothballed by a Cabinet of Ministers decision — for the mothballing period. The rule applies to land allocated to legal entities in the established manner. For the first four types on the list (power transmission lines, communication lines, railways, trunk oil and gas pipelines), the coefficient is applied to the average rate for the district or city; the tax authority communicates the average rate to taxpayers every year by 5 January.

Two more rules (Article 429): for a plot occupied by an unfinished construction project, tax (unless legislation provides otherwise) is paid at double the rate; if land is used without documents or beyond the area stated in the documents, the rate is set at four times the established rate. Tax is calculated as of 1 January of each tax period (Article 431).

Example (prepared by the author, the coefficient is hypothetical). «Chinor Print» LLC owns a plot of 1,200 sq. m (0.12 hectare) in zone 2 of Tashkent. Suppose the district council has set a coefficient of 1.5 for this mahalla.

Rate: 254.2 × 1.5 = 381.3 million soums per 1 hectare.

Annual tax: 381,300,000 × 0.12 = 45,756,000 soums.

Check via sq. m: 381,300,000 : 10,000 = 38,130 soums; 38,130 × 1,200 = 45,756,000 soums.

If someone reads "sq. m" instead of "hectare" and takes a rate 100 times lower, the tax will also be 100 times lower — and it will come back later as additional tax and late payment interest.

First, what is not there: the Tax Code has no term "tax gap", and the criteria for determining the risk level are not written into the Code either. Under Part Eight of Article 266¹, the procedure for determining the risk level of invoices, keeping their register and paying tax on their basis is set by the Cabinet of Ministers. The Code itself contains the following (Article 266¹; Parts Three to Nine took effect on 1 January 2026):

1) If an invoice is placed in the high tax risk level, the buyer may pay that VAT to the budget itself as a tax agent in order to claim it. The tax agent is a legal entity, individual entrepreneur or self-employed person that is itself a VAT payer and receives goods (services) from a VAT payer (Part Three). If the tax is not paid as an agent, the VAT on a high-risk invoice is not credited to the buyer (Part Two of Article 267).

2) In that case the VAT is credited to the buyer in the period in which it was paid to the budget as a tax agent (Part Six). If payment is made for an invoice relating to a period for which the final reporting deadline has not yet arrived, the VAT is credited in the relevant period by the invoice date (Part Seven).

3) If the supplier ends up with a negative VAT difference or an overpayment as a result, it may be offset against future payments or refunded in the manner established by the Code (Part Four).

4) The fact that invoices issued by the supplier are placed in the high risk level does not deprive the supplier of the right to claim VAT on goods (services) it has purchased itself (Part Five).

5) If there is evidence that VAT credited under a low-risk invoice arose from a sham or simulated transaction, the tax authority may cancel or adjust the credit. This does not apply to amounts credited because the buyer paid the tax as an agent under invoices originally placed in the high risk level (Part Nine).

On the certificate (Parts One and Two of the same article): if the VAT payer certificate has been suspended, terminated or cancelled, that payer cannot claim VAT on goods it received, and buyers who received goods from it cannot claim that VAT either. If the certificate is restored, the VAT is credited (adjusted) both for the payer and for its buyers from the date of suspension. The Cabinet of Ministers also sets the procedure for (Part Five of Article 237): issuing the certificate; suspending, restoring, terminating or cancelling it; appealing against a tax authority decision in connection with the certificate not being issued on time or being refused, being suspended, terminated or cancelled, or not being restored on time; and removal from special registration.

Practical tip: before signing a contract with a new supplier, check that its VAT payer certificate is in force. Before deciding whether to pay the tax as an agent under a high-risk invoice, read the current Cabinet of Ministers procedure: the criteria and practical steps are in that document, not in the Code.

It is taken out of 6410. NAS No. 21 sets aside two accounts for such a debt. Account 7240 "Long-term deferred liabilities for taxes and levies" reflects long-term debt on tax that, in accordance with the law, may be paid in deferred instalments over several years by decision of the relevant authority (paragraph 325). Account 6240 "Deferred liabilities for taxes and levies" holds the current portion of that debt (paragraph 266).

Example (prepared by the author, hypothetical figures). The tax debt of "Chorbog' mebel" LLC in 6410 is 90,000,000 soums. Under the decision it is paid over three years, 30,000,000 soums each year.

Result: the balance sheet shows a current liability of 30,000,000 soums (6240) and a long-term liability of 60,000,000 soums (7240). Each year the next 30,000,000 soums is again transferred from 7240 to 6240.

When a payment is made, the balance of 6240 decreases. The standard's model tables give no separate line for paying from 6240, so set this entry in your accounting policy.

Analytical accounting: 7240 is kept by each type of tax and by repayment term (paragraph 325), 6240 by each type of tax (paragraph 266).

Tip: copy the payment schedule and the other conditions from the text of the decision and reconcile them with the 7240 analytics every quarter — you will see in advance which amount moves to the current portion and when.

No. Under paragraph 378 of NAS No. 21, VAT, excise tax and other payments on the sale of products are reflected in the debit of receivables or cash accounts and "in the credit of the accounts that record payables to the budget (6400)". The revenue account, however, receives the amount "excluding VAT and excise taxes" (paragraph 383, line 1). That is, 9010 holds only the value that stays with the company, while the excise tax is an amount collected from the buyer and passed on to the budget.

Example (prepared by the author; the amounts are hypothetical, and the excise rate and the VAT calculation procedure are not shown here). "Oqsoy ichimliklari" LLC shipped products to a buyer: product value 200,000,000 soums, excise tax 20,000,000 soums, VAT shown separately on the invoice.

As a result, net sales revenue in the statement of financial results will be 200,000,000 soums. If the excise tax were also posted to 9010, revenue would be 220,000,000 soums and would look inflated, and indicators such as return on sales would come out wrong.

Analytical accounting for 6410 is kept separately by each type of tax (paragraph 274), so do not mix excise tax and VAT in a single sub-account: at month-end the balance of each must be visible separately.

After the final settlement, the overpayment appears as a debit balance in the 6410 analytics for that tax (the 6410 analytics are kept by each type of tax, NAS No. 21, paragraph 274). It can be closed in two ways, and both are shown in a single model line: "Refund of funds from the budget or transfer to future payments" — Dt 5110, 5210, 5530, 4410 – Ct 6410 (paragraph 275, line 3). If the money is refunded, the debit is 5110; if it is left for future payments, the debit is 4410 "Advance payments of taxes and levies to the budget".

Example (prepared by the author, hypothetical figures). "Zarafshon print" LLC:

Now 6,000,000 soums sits as an advance in the corporate profit tax analytics of 4410. Next year, when the tax is charged and the final settlement is made, it is again closed with Dt 6410 – Ct 4410 (paragraph 191, line 4).

Tip: the procedure and deadlines for refunding the amount or offsetting it against another tax are set by the Tax Code. Before making the entry, reconcile settlements with the tax authority and make sure the excess amount is the same on both sides.

Paragraph 326 of NAS No. 21 states this clearly: "Corporate profit tax expenses are calculated on the basis of accounting income, while corporate profit tax payable is calculated on the basis of taxable income". Under the same paragraph, the difference between corporate profit tax calculated on accounting income and corporate profit tax payable calculated on taxable income is kept as a temporary difference and is reflected in the credit of account 7250 "Long-term deferred corporate profit tax liabilities on temporary differences". That is, tax that is not paid now but will be paid in the future is recorded as a deferred corporate profit tax liability.

Example (prepared by the author, hypothetical figures). "Chorsu servis" LLC provides only shopping complex services, so it applies the rate for profit from services of bazaars and shopping complexes reduced from 20 percent to 15 percent by Decree PF-175. Accounting profit is 200,000,000 soums. Let us assume that 40,000,000 soums of income is taken into account for tax purposes in the next year (which income is taxed when is determined by the Tax Code). Tax base: 160,000,000 soums.

Journal entries (NAS No. 21):

There is no separate line in the standard's model tables for the next step: paragraph 267 only says that 6250 is later linked with account 6410 "Payables to the budget" as the tax arises, i.e. the amount moves to the tax payable to the budget. Set the exact journal entry in your accounting policy.

Result: this year's net profit is 200,000,000 − 30,000,000 = 170,000,000 soums. If only the current tax had been recorded, profit would be 176,000,000 soums, and the 6,000,000 soums payable next year would not be visible in the accounts.

It should be shown, but where depends on whether the benefit document requires the released funds to be used for a specific purpose. NAS No. 21 has two routes:

Under a targeted benefit, the amount exempted from tax is recorded with Dt 6410 – Ct 8840 (paragraph 374, line 6). When the benefit period ends, the released funds are written off with Dt 8840 – Ct 8530 (paragraph 374, line 7).

Under a non-targeted temporary benefit, the released amount for each type of budget payment is recorded in the debit of 013. Under paragraph 450, this amount is not reflected in the "Statement of Financial Results" and does not affect the financial result. As soon as the benefit period ends, the amount is written off from 013, and the information is then kept for another 5 years.

Example (prepared by the author, hypothetical figures). "Yangiyo'l tola" LLC was granted a 12-month benefit; the amount released each month is 3,500,000 soums, and targeted use of the funds is not required.

Check: 3,500,000 × 12 = 42,000,000 soums. This total shows how much was gained from the benefit and helps to explain it quickly during an audit.

Tip: read the document granting the benefit and find out whether the funds must be used for something specific and whether a separate report is required — and write the account you choose into your accounting policy.

Quite the opposite: they remain just as important. Presidential Decree PF-175 of 27 August 2026 sets four rules on this matter:

• until the state body proves otherwise, the entrepreneur is deemed to have acted in accordance with the law;
• it is the state body, not the entrepreneur, that proves a violation was committed;
• irremovable contradictions, ambiguities and inconsistencies in legislation are interpreted in favour of the entrepreneur;
• if the state body's evidence is insufficient, this is also interpreted in favour of the entrepreneur.

These rules determine who has to prove things first, but they do not release the entrepreneur from keeping documents. If the state body puts forward some piece of evidence, what answers it is your contract, your invoice and your payment document. When the documents are in order, it becomes easier to show that the state body's evidence is insufficient.

Example (compiled by the author, hypothetical figures). "Gulshan qandolat" LLC (general tax regime) bought flour worth 18,000,000 soums excluding VAT from "Don mahsulot" LLC. VAT is 18,000,000 × 12% = 2,160,000 soums, a total of 20,160,000 soums. The inspector expressed doubt that the purchase actually took place. You can prepare in advance which document answers each question (the author's recommendation):

The accounting entries also rest on these documents (NAS No. 21, paragraph 257, rows 3 and 6; paragraph 226, row 15): when the flour is received, Dt 1010 "Raw materials and supplies" – Ct 6010 18,000,000 soums; when the VAT is credited, Dt 4410 – Ct 6010 2,160,000 soums; when payment is made, Dt 6010 – Ct 5110 20,160,000 soums.

Practical tip: for every large purchase, gather the contract, invoice, receipt and payment documents in one folder (paper or electronic). Then, if a question comes up during an audit, you can show the answer within a few minutes, and this gives grounds for the dispute to be resolved in your favour.

Decree PF-175 (27 August 2026) abolished the application of the minimum rent payment to real estate that a founder of a legal entity who is an individual leases or grants for free use to his own company. So if the founder rents his room to the company, the agreed rent will not cause a problem merely because it is below the minimum amount.

When does the rule apply? Three conditions must be met together:

• the property must be real estate (a building, room or warehouse);
• the owner of the property must be a founder of the company and an individual;
• the property must be leased or granted for free use to this particular founder's company.

Example (compiled by the author, hypothetical figures). Sevara opa, a founder of "Durdona tikuv" LLC, rented a 40 sq. metre room she owns to the company for 1,500,000 soums a month. The room is used for management, so each month when the rent is accrued: Dt 9420 "Administrative expenses" – Ct 6910 "Operating lease payable" 1,500,000 soums; when paid: Dt 6910 – Ct 5110 (NAS No. 21, paragraph 298; paragraph 412, row 7; paragraph 226, row 25). If Sevara opa had granted the room free of charge, no rent expense would be recorded.

Note: this relief is not permission to work without documents. Conclude the lease or free-use agreement in writing and register it in the "e-ijara" system: under Article 223 of the Tax Code, goods stored in a building used under an unregistered agreement may be treated as concealment of the tax base.

Yes. Under Decree PF-100 (26 May 2026, as amended by Decree PF-175), a buyer who purchases goods or services from an entrepreneur on the simplified 6% VAT regime has the right to credit the VAT. The restriction applies to the seller itself: it does not credit input VAT on the goods it purchases.

For the buyer, the only difference is in the amount: the invoice shows VAT at the 6% rate rather than 12%, so the amount that can be credited is correspondingly smaller.

Example (compiled by the author, hypothetical figures). "Sayqal mebel" LLC (general regime) bought boards worth 10,000,000 soums excluding VAT from the "Yog'och olami" shop, which is on the 6% regime.

Journal entries: Dt 1010 "Raw materials and supplies" – Ct 6010 10,000,000; Dt 4410 "Advance payments of taxes and levies to the budget" – Ct 6010 600,000. Had the same boards been bought from a supplier on the general regime, the VAT would have been 10,000,000 × 12% = 1,200,000 soums.

Practical tip: when comparing prices, look at the price excluding VAT, not at the final amount including VAT. For example, when comparing 10,600,000 soums offered by a seller on the 6% regime with 11,200,000 soums (10,000,000 + 1,200,000) from a seller at the 12% rate, the value excluding VAT is the same in both cases — the difference is only in the amount of VAT that can be credited.

Under Decree PF-100, from 1 June 2026 the threshold for switching to the general tax regime is set at 12,000 times the base calculation amount (BCA). The threshold is not fixed in soums; it is tied to the BCA. So if the BCA changes, the threshold expressed in soums changes too.

Under Decree PF-115, from 1 September 2026 the BCA is 440,000 soums. Calculation: 440,000 × 12,000 = 5,280,000,000 soums, i.e. 5.28 billion soums.

Example (compiled by the author, hypothetical figures). "Mehrigiyo market" compares its income with the threshold every month:

In one month income grew by 360,000,000 soums. If this pace continues, the remaining 660,000,000 soums will be used up in about 1.8 months (660,000,000 : 360,000,000). This is a warning for the shop: preparation for the general regime should start now.

What does preparation involve? Collecting invoices from suppliers in an orderly way so that input VAT can be credited, setting up accounting software that keeps VAT and corporate profit tax records, and reviewing prices to include VAT.

Note: which period's income is compared with the threshold and from which date the switch takes effect are set by the Tax Code, so check the exact date in the current version.

Under Decree PF-100, both switching to the simplified regime and opting out of it take effect from the first day of the month following the month in which the notification was sent. That is, regardless of which day of the month the notification is sent, the new regime starts on the 1st of the following month.

About goods in the warehouse: on returning to the general regime, the taxpayer may, in the established manner, credit the VAT included in the carrying amount of the balances of inventories and long-term assets on its balance sheet at the date of the switch. Under the 6% regime this VAT was not credited and went into cost; now an opportunity to recover it arises.

Example (compiled by the author, hypothetical figures). "Lazzat oshxonasi" sent a notification of opting out on 20 November. The general regime starts on 1 December. As at 1 December, the warehouse holds products bought from suppliers on the general regime:

For products bought at the market without VAT, there is no VAT to credit, because their price did not include VAT.

Practical tip: before sending the notification, carry out an inventory count as at the switch date and link the balances to the suppliers' invoices: if you can show which goods arrived with which document and with how much VAT, crediting will be easy.

The investment deduction is a deduction under corporate profit tax provided for in Article 308 of the Tax Code. It can be applied as a depreciation expense in the year in which buildings and structures and new technological equipment are purchased and put into service.

There are two rates:

1) 20 percent — of the cost of new technological equipment, of expenses on modernizing production and technical and (or) technological re-equipment, and of the funds directed to purchasing locally produced software within investment projects for creating information systems;

2) 10 percent — of the funds directed to expanding production in the form of new construction and to reconstructing buildings and structures used for production needs.

"New" technological equipment means equipment no more than 3 years old from its year of manufacture.

The statement on the investment deduction is reported in Appendix 3 to the corporate profit tax return.

Example (compiled by the author, hypothetical figures). In 2026 "Chinor qandolat" LLC bought a new packaging line manufactured in 2025 for 600 million soums and put it into service the same year. It also spent 1 billion soums on reconstructing its production building.

• Equipment: 600 million × 20% = 120 million soums.
• Building: 1,000 million × 10% = 100 million soums.
• Total investment deduction: 220 million soums.

Had the company bought equipment manufactured in 2021 in 2026, it would not count as "new", since more than 3 years had passed since its year of manufacture, and the 20 percent deduction would not apply.

Tip: keep the document confirming the equipment's year of manufacture (technical passport, certificate or shipping documents) and the commissioning certificate — these are the documents that show the deduction is justified.

In this case VAT is calculated not on the full sale price but only on the margin (the difference). Under Tax Code Article 248, part 11, when cars and residential real estate bought from individuals for resale are sold, the tax base is the positive difference between the sale price and the purchase cost. Important: this difference includes the tax, i.e. the VAT sits "inside" the difference.

So the formula is: VAT = (sale price − purchase cost) × 12/112. Here 12 is the VAT rate (12%) and 112 is 100 + 12, because the amount includes VAT.

Example (prepared by the author, hypothetical figures). "Tez Avto Savdo" LLC bought a used car from a citizen, Jasur, for resale for 185,000,000 soums and a month later sold it for 212,500,000 soums.

Correct calculation: difference 212,500,000 − 185,000,000 = 27,500,000 soums. VAT = 27,500,000 × 12/112 = 2,946,428.57 soums. The rest of the difference, 24,553,571.43 soums, is the company's margin net of VAT.

Common mistake: applying 12/112 to the full sale price. That gives 212,500,000 × 12/112 = 22,767,857.14 soums — about 7.7 times the correct amount, i.e. the tax would eat up about 83% of the entire margin (27,500,000 soums). A second mistake: applying 12% instead of 12/112 to the difference (27,500,000 × 12% = 3,300,000 soums) — also wrong, because the tax base includes VAT.

Note: this rule applies only to cars and housing bought from individuals for resale. If the company bought a car for its own use and it is recorded as a fixed asset, the rule does not apply when it is later sold. So decide at the time of purchase where the item is recorded (as goods or as a fixed asset).

The main risk concerns not the rent but the goods stored in those premises. Under the current procedure, inventory balances kept in real estate leased or used free of charge under agreements not registered in the «e-ijara» system are not included in the inventory count. For tax purposes they are deemed absent from your warehouse, and this is treated as concealment of the tax base.

Why is this serious? Under Tax Code Article 223, the absence from the warehouse or point of sale of goods that are recorded as unsold is recognised as concealment (understatement) of the tax base and results in a fine of 20 percent of the concealed base. In practice the tax authority treats such goods as sold, charges 12% VAT on them and applies the 20% fine on top.

Example (prepared by the author, hypothetical figures). "Nurli Plitka" LLC leased a warehouse on the edge of town under a verbal arrangement and a simple paper agreement, but did not register it in «e-ijara». According to its accounts, unsold tiles worth 150,000,000 soums are stored there.

Hypothetical calculation: if the goods are treated as sold, VAT is 150,000,000 × 12% = 18,000,000 soums. If the concealed base is taken as 150,000,000 soums, the fine is 150,000,000 × 20% = 30,000,000 soums. Total extra burden: 48,000,000 soums — for goods on which the company has not yet earned anything. These figures are for illustration only: in practice the concealed base and the VAT base are determined by the tax authority and may differ from this example.

Practical tip: register every lease or free-use agreement for premises where goods are stored in «e-ijara» before you start using them. When a term is extended or a new agreement is signed, check it too. Keep the registration confirmation together with a copy of the agreement: it may be needed during an audit.

Under Article 59 of the Tax Code, social sector activities are:

1) medical services: diagnosis, prevention, treatment, dentistry (cosmetology is not on this list); 2) educational services, including holding tests and exams; 3) scientific activity (only for accredited entities); 4) services in physical culture and sport, training sessions, competitions, and renting out sports facilities and sports equipment; 5) social protection: for children, the elderly and persons with disabilities.

Being on the list is not enough on its own. The main condition is the "90% rule": income from this activity (together with property received free of charge) must be at least 90% of total annual income. If the share is lower, social sector status is not granted.

Example (prepared by the author, hypothetical figures): the "Sog'lom tish" clinic has total annual income of 1,000,000,000 soum.

Case 1: 920,000,000 soum from treatment and dental services, 80,000,000 soum from cosmetology and renting out a spare room. Share: 920 / 1,000 = 92%. This is above 90%, so social sector status is kept.

Case 2: 850,000,000 soum from medical services, 150,000,000 soum from cosmetology. Share 85%. Cosmetology does not count as a medical service, so the 90% rule is not met and status is not granted.

Practical tip: calculate the share of the main activity every quarter during the year. If the share gets close to 90%, work out in advance how a new line of business (for example, cosmetology) would affect the annual share before launching it.

This situation is governed by Resolution No. 943 of the Cabinet of Ministers of 23 November 2019. First of all, remember: responsibility for ensuring a constant internet connection lies with the entrepreneur. So it is wise to plan ahead for a possible connection loss and have a backup connection ready.

Step-by-step procedure:

Step 1. If there is a fault, notify the technical service centre for the cash register (TXKM); it is best not to delay this.

Step 2. Within 1 hour the technical service centre notifies the tax authority through a special information system. This is the centre's duty; you should record the time you contacted it.

Step 3. Until the fault is fixed or a backup device is provided, give buyers a special receipt registered with the state tax service authorities. Its form is set out in Annex 4 to the regulation.

Step 4. Within 1 working day after the cash register is repaired, enter the sales data from the special receipt book into the online cash register (online CCM) or virtual cash register system.

Example (prepared by the author, hypothetical figures): at 11:00 on Tuesday the cash register at the "Mehrigiyo" pharmacy shut down. The cashier immediately called the technical service centre and wrote the time in a log. Until the device was fixed, 14 buyers were given special receipts. The device was set up again on Wednesday, so the sales data from the 14 receipts must be entered into the system within 1 working day after the cash register is set up.

Practical tip: prepare the registered receipt book in advance, not after a breakdown, and keep it next to the till.

"Second Chance" (Ikkinchi imkoniyat) is an economic amnesty announced by Presidential Decree PF-175 of 27 August 2026. It is aimed at small and medium-sized businesses and runs until 31 December 2026.

The condition on penya: if tax arrears that arose before the Decree was adopted are paid in full by 31 December 2026, the penya charged on those arrears is written off. Because the condition is "payment in full", this result cannot be relied on if only part of the debt is cleared.

On fines: the unpaid remainder of administrative fines imposed before 1 January 2026 for failing to file tax returns on time is also written off.

Example (prepared by the author, hypothetical figures): the "Barakali non" bakery has old tax arrears of 7,000,000 soum, with penya of 900,000 soum charged on them. If the bakery pays the 7,000,000 soum in full by the end of December, the 900,000 soum of penya is written off. If it pays only 5,000,000 soum, the full-payment condition is not met.

What to do: 1) find out the amount of the debt and the penya from your settlement status with the tax authority; 2) plan when and from which funds to clear the debt; 3) do not leave the payment until the last days, because money needs time to arrive; 4) after paying, check that the debt has dropped to zero.

The general VAT rate is 12 percent. So if the price without VAT is taken as 100, the price with VAT is 112. Therefore, to find VAT from the final price, multiply it by 12 and divide by 112. To find the price without VAT, divide the final price by 1.12.

A common mistake is to take 12 percent directly from the final price. This overstates VAT, because the 12 percent is calculated on the price without VAT, not on the final price.

Example: "Lazzat taomlari" bought kitchen equipment for 5 600 000 soum (including VAT). VAT = 5 600 000 × 12 / 112 = 600 000 soum. Price without VAT = 5 600 000 / 1.12 = 5 000 000 soum. Check: 5 000 000 × 12% = 600 000. If calculated the wrong way, 5 600 000 × 12%, the result is 672 000 soum, that is, 72 000 soum too much.

Separately. Under NAS No. 21, the amount without VAT is recorded in the revenue account: Dt 4010 – Ct 9020 "Revenue from sale of goods" (the table in paragraph 383 says "excluding VAT and excise taxes"). VAT is recorded separately as a liability to the budget: Dt 4010 – Ct 6410. The customer's total debt in 4010 equals the sum of the two amounts.

At the same time, the cost of the goods sold is written off: Dt 9120 – Ct 2910. If VAT is added to 9020, revenue is artificially inflated and the figures in the income statement are distorted.

Example: "Oydin texnika" sold refrigerators worth 20 000 000 soum (excluding VAT) on credit; their cost is 15 000 000 soum. VAT 12% = 2 400 000. Journal entries: Dt 4010 – Ct 9020 20 000 000; Dt 4010 – Ct 6410 2 400 000; Dt 9120 – Ct 2910 15 000 000. The customer must pay 22 400 000 soum.

Input VAT is first accumulated in account 4410: Dt 4410 – Ct 6010 (NAS No. 21, paragraph 190: account 4410 also records the VAT shown in settlement documents for purchased inventories). Output VAT sits on the credit of 6410: Dt 4010 – Ct 6410.

When input VAT is credited, it is offset against 6410: Dt 6410 – Ct 4410. After that, the credit balance for VAT in 6410 is the amount payable to the budget, and the payment is recorded as Dt 6410 – Ct 5110. Analytical records for 6410 are kept separately by type of tax (paragraph 274), so do not lump the VAT balance together with other taxes.

Example: during a tax period "Mevali bog'" bought goods worth 8 000 000 soum (excluding VAT); the input VAT was 960 000 soum. In the same period output VAT was 2 400 000 soum. After Dt 6410 – Ct 4410 960 000, 1 440 000 soum remains in 6410; once it is paid, Dt 6410 – Ct 5110 1 440 000.

The VAT on the returned part is also reduced. Under NAS No. 21 (paragraph 381), the VAT charged earlier is recorded on the debit of 6410 and the credit of the receivable or cash account: Dt 6410 – Ct 4010. Revenue itself is reduced through the contra-liability account 9040 "Returns of goods (products) sold": Dt 9040 – Ct 4010.

Since the goods are back in the warehouse, their cost is also restored: Dt 2910 – Ct 9120. This way sales, VAT and cost are all reversed by the same volume, and the statements do not show "inflated" revenue.

Example: "Ipak yo'li textile" had sold fabric worth 10 000 000 soum (excluding VAT); the customer returned a part worth 2 000 000 soum, whose cost is 1 500 000 soum. Journal entries: Dt 9040 – Ct 4010 2 000 000; Dt 6410 – Ct 4010 240 000; Dt 2910 – Ct 9120 1 500 000.

No. The sale of a fixed asset is not a sale of goods; it goes through 9210 "Disposal of fixed assets". The customer's debt: Dt 4010 – Ct 9210 (NAS No. 21). The VAT charged on the sale: Dt 9210 – Ct 6410 (row 17 of the table for group 9200).

Thus the full amount receivable from the customer goes to the credit of 9210, the initial cost of the truck and the VAT go to the debit, and the depreciation is returned to the credit. The remaining difference is the gain or loss on the sale.

Example: "Saxovat logistika" sold the truck for 44 800 000 soum (including VAT). VAT = 44 800 000 × 12 / 112 = 4 800 000. The truck's initial cost is 90 000 000, its depreciation 55 000 000. In 9210: credit 44 800 000 + 55 000 000 = 99 800 000; debit 90 000 000 + 4 800 000 = 94 800 000. The difference of 5 000 000 soum is a gain: Dt 9210 – Ct 9310.

Here the employer is a tax agent: the tax is withheld from the employee's income, and the company remits it to the budget. NAS No. 21 has a ready-made entry: "Withholding of personal income tax from individuals' wages" Dt 6710 – Ct 6410. When it is remitted to the budget: Dt 6410 – Ct 5110.

Note: this tax is not an expense of the company, so it is not recorded in 9420 or 9430. The expense is the salary itself (for example, Dt 9420 – Ct 6710), while the tax is withheld from within that amount and the employee receives less money in hand.

Example (the amounts are hypothetical; the amount of tax to be withheld is determined under the current tax legislation): Sanjar, the accountant at "Durdona kafe", was accrued a salary of 6 000 000 soum, and suppose 700 000 soum was withheld from it as income tax. Journal entries: Dt 9420 – Ct 6710 6 000 000 (salary of a management employee); Dt 6710 – Ct 6410 700 000; payment to the employee Dt 6710 – Ct 5110 5 300 000; to the budget Dt 6410 – Ct 5110 700 000.

The table for group 6400 of NAS No. 21 (paragraph 275, row 1) shows that payables to the budget for deductions, taxes and levies relating to period expenses are recorded as Dt 9430 – Ct 6410. On payment: Dt 6410 – Ct 5110.

This must be distinguished from VAT and corporate profit tax. VAT is collected from the customer and is not an expense (Dt 4010 – Ct 6410). Corporate profit tax is kept in a separate account, 9810 (Dt 9810 – Ct 6410). A tax relating to period expenses, by contrast, reduces profit as an ordinary operating expense.

Example (hypothetical amount): for the quarter "Navro'z mebel" accrued a liability of 900 000 soum for a levy relating to period expenses. Journal entry: Dt 9430 – Ct 6410 900 000; payment: Dt 6410 – Ct 5110 900 000. In the analytical records for 6410, this amount sits on a separate line from VAT and other taxes.

Even though the money did not go into the company's settlement account, the debt to the budget was settled, and in its place a debt to the bank arose. NAS No. 21 has a separate row for this case: "Payment of debts to the budget from loans and borrowings received" Dt 6410 – Ct 6810 (for a short-term loan).

If the loan first goes into the settlement account and the tax is then paid from it, there are two entries: Dt 5110 – Ct 6810 and Dt 6410 – Ct 5110. The result is the same; only the cash movement is visible in the bank statement. Interest on the loan is accrued separately as an expense (Dt 9610 – Ct 6920).

Example: "Qo'qon charm" had a tax debt of 30 000 000 soum. The bank transferred this amount directly to the budget as a loan: Dt 6410 – Ct 6810 30 000 000. Now the balance for this tax in 6410 is zero, and 6810 shows a debt of 30 000 000 soum to the bank.

Under Decree PF-100 (26 May 2026, as amended by Decree PF-175), entrepreneurs in trade, catering and services may, from 1 June 2026 to 1 January 2030, voluntarily pay VAT under the simplified 6 percent regime. Under this regime corporate profit tax is 0 percent, and input VAT is not credited.

If input VAT is not credited, it is not accumulated separately in 4410. Under paragraph 15 of NAS No. 4, taxes related to the purchase of inventories are included in the cost of inventories if they are not recoverable (not accepted for credit). That is, the goods are taken on charge at the full amount payable to the supplier: Dt 2910 – Ct 6010. On sale, VAT is charged at the 6 percent rate and recorded as Dt 4010 (or 5010) – Ct 6410.

Example (hypothetical figures; for simplicity, the 6 percent VAT is assumed to be added on top of the sale price excluding VAT, while the calculation base is determined under the tax legislation): "Gulbahor market" bought goods for 11 200 000 soum (of which VAT 1 200 000): Dt 2910 – Ct 6010 11 200 000. It sold them for 14 000 000 soum (excluding VAT): Dt 4010 – Ct 9020 14 000 000; VAT 6% = 840 000: Dt 4010 – Ct 6410 840 000. Since the cost is 11 200 000, the gross profit is 2 800 000 soum. If the same shop were under the general regime, the cost would be 10 000 000, so calculate both options before choosing.

No. The very name of account 6410 says "by type", and paragraph 274 of NAS No. 21 states that analytical records for 6410 are kept separately for each type of tax. Likewise, the advances in 4410 are also broken down by type of tax.

A single overall balance is dangerous: an overpayment of one tax "hides" a debt for another tax. As a result, the balance sheet seems to show no debt, while in fact an unpaid amount for a particular tax is outstanding.

Example: the overall 6410 balance of "Sarbon sayohat" was zero. When broken down analytically, it showed a VAT debt of 3 000 000 soum and an overpayment (debit balance) of corporate profit tax of 3 000 000 soum. That is why it is recommended to open a separate sub-account or analytical card for each type of tax in the accounting software.

Corporate profit tax that has been calculated becomes a debt to the budget. Under NAS No. 21, it is recorded on the debit of 9810 "Corporate profit tax expense" and the credit of 6410 "Payables to the budget": Dt 9810 – Ct 6410. When the money is transferred, the debt is closed: Dt 6410 – Ct 5110.

9810 is a transit account, so no balance remains in it at year-end. When the annual statements are prepared, it is closed to the final financial result account: Dt 9910 – Ct 9810. This is why net profit comes out as the after-tax amount.

Example: according to its return, "Oqtepa plast" LLC owes 9 000 000 soum of corporate profit tax. The accountant records Dt 9810 – Ct 6410, on the payment date Dt 6410 – Ct 5110, and at year-end closes 9810 to 9910. One check: after payment, the corporate profit tax sub-ledger of 6410 should show a zero balance.

Under NAS No. 21 (paragraph 190), advances transferred to the budget are accumulated in account 4410 "Advance payments of taxes and levies to the budget": Dt 4410 – Ct 5110. This is an asset, that is, money "paid in advance" to the budget.

In the final settlement, the tax liability sits on the credit of 6410, and the advances are offset against it: Dt 6410 – Ct 4410. If the liability exceeds the advances, the difference is paid (Dt 6410 – Ct 5110). Sub-ledgers are kept separately for each type of tax, so an advance for one tax is not mixed up with the liability for another.

Example: during the year "Sayhun avto" transferred 12 000 000 soum in advances in total, and the final settlement showed tax of 14 500 000 soum. Entries: Dt 6410 – Ct 4410 12 000 000; when the remaining 2 500 000 soum is paid, Dt 6410 – Ct 5110.

The fine goes neither into the cost of products nor to the buyer's account. The examples for the 9400 accounts in NAS No. 21 (paragraph 412) state it clearly: a fine charged under a decision of the tax authorities is recorded as Dt 9430 "Other operating expenses" – Ct 6410 "Payables to the budget". When paid: Dt 6410 – Ct 5110.

Simply closing the liability in 6410 with the payment without posting the expense is a mistake: 6410 would then show a debit balance, as if tax had been overpaid to the budget.

Example: "Bog'ishamol savdo" was fined 2 000 000 soum. On the day the decision is received, Dt 9430 – Ct 6410; on the payment date, Dt 6410 – Ct 5110. A copy of the decision is kept as the supporting document for the entry.

A dividend is accrued out of retained earnings, and the amount payable to the founder sits on the credit of 6610 "Dividends payable": Dt 8710 – Ct 6610. The company withholds the tax at source and transfers it to the budget. Under NAS No. 21 (examples in paragraph 285), the tax withheld: Dt 6610 – Ct 6410.

After that, only the remaining amount is paid to the founder: Dt 6610 – Ct 5110, and the tax is transferred to the budget: Dt 6410 – Ct 5110. As a result, both 6610 and 6410 are closed.

Example: a dividend of D soum was declared to the founder of "Ko'kcha mebel", and the tax to be withheld under the law came to S soum. Entries: Dt 8710 – Ct 6610 (D); Dt 6610 – Ct 6410 (S); Dt 6610 – Ct 5110 (D − S). For the rate, refer to the tax legislation in force.

Decree PF-100 (26 May 2026) provides that a negative VAT difference of up to 10 mln soum is refunded automatically. A negative difference means a situation where creditable (input) VAT exceeds the VAT charged on sales. Read the detailed conditions of the refund procedure in the Decree itself.

In the accounts, money returned from the budget is recorded under NAS No. 21 (examples in paragraph 275) as Dt 5110 "Settlement account" – Ct 6410 "Payables to the budget". After this entry, the debit balance in the VAT sub-ledger of 6410 should be closed.

Example: "Oydin print" bought new equipment, and at the end of the reporting period it had a negative VAT difference of 7 400 000 soum. When the amount comes back to the bank, Dt 5110 – Ct 6410 7 400 000 is recorded. The general VAT rate remains 12%, as before.

Yes, the overpaid amount is not lost: it remains your funds. You can have it offset against future payments or other taxes, or apply to have it refunded to your bank account.

First reconcile settlements with the tax authority to establish the overpaid amount. If you owe other taxes, the overpaid amount may first be applied to that debt. Check the deadlines for applying and for the refund in the current version of the Tax Code.

It is risky. For an expense to be deducted for tax purposes, it must be supported by a document. Without a document, the expense may not be accepted during an audit and the tax may be recalculated.

If the receipt is lost, try asking the seller for a copy of the document, an invoice or another supporting document. If you paid by bank card, the bank statement will serve as additional evidence.

If it is established that the transaction did not actually take place and was only formalised on paper, the tax authority may refuse to accept the VAT you credited, collect the underpaid tax and charge late payment interest (penya) on it.

So keep the documents confirming that the goods actually arrived (contract, waybill, acceptance certificate, warehouse receipt, payment through the bank). And check a new partner before signing a contract.

It is not recommended. Every document signed with an EDS is deemed to have been signed by the EDS owner, who is also answerable for it. If the key and password pass into other hands, it becomes difficult to control who signed what.

The right way: the accountant should have their own EDS and be granted the relevant authority through the official procedure. Check what rights can be granted to an employee in electronic systems under the current rules of that system.

Not in the accounts. Until the goods or services are delivered, an advance received is a liability and sits in account 6310. Income is recognised when the goods are delivered.

For tax purposes, however, the date on which income and turnover arise is set separately for each tax in the Tax Code. So when you receive an advance, check the rules for VAT and other taxes in the current version.

No. Social tax is paid by the employer at its own expense. It is calculated on the amount of salary accrued to the employee, but it is not deducted from the money the employee takes home.

What is withheld from the employee's salary is personal income tax (PIT). The employer, acting as a tax agent, withholds it and remits it to the budget.

You need a properly issued invoice (in Uzbekistan, an electronic VAT invoice). It must show the TIN (taxpayer identification number) of the seller and the buyer, the name of the goods, the amount and the VAT amount.

If there is no document, or it contains an error, the VAT paid may not be credited.

Late-payment interest (penalty interest, "penya") is charged for each day a tax payment is late and keeps accruing until the debt is paid.

A fine, by contrast, is a financial sanction for a tax violation, for example, for failing to file a return on time. The amounts of both are set by the Tax Code.

Liability falls on the tax agent, that is, the employer. Correctly calculating the tax, withholding it and remitting it to the budget on time are its obligations.

Late-payment interest may be charged on the overdue amount, and other measures provided for by law may be applied.

As a general rule, no. Turnover tax is calculated on revenue, not on profit, so expenses do not reduce the tax base.

Certain receipts that are excluded from the tax base are listed separately in the Tax Code.

The tax authority asks the taxpayer to provide an explanation or to correct the error and file an amended return.

It is important to respond to the request on time: this often prevents a subsequent, more in-depth audit.

Yes. When an error is found, an amended (corrected) tax return is filed.

If the error resulted in underpaid tax, you will need to pay the difference and the late-payment interest charged on it. The sooner you correct the error yourself, the milder the consequences.

The incentive must be expressly established by law, and the company must meet all of its conditions: type of activity, region, time period and others.

Document that the conditions are met and correctly disclose the incentive in your tax return. If a condition is breached, the incentive may be cancelled and the tax recalculated.

No. The tax period is set separately for each tax in the Tax Code: for some it is a month, for others a quarter or a year.

That is why it is convenient to track the filing and payment deadlines for each tax in a separate tax calendar.

A direct tax is levied directly on income or property, and its burden falls on the taxpayer itself: for example, corporate profit tax or personal income tax (PIT).

An indirect tax is added to the price of goods; the seller remits it to the budget, but ultimately the consumer pays it: for example, VAT and excise tax.