Unofficial translation Tax code of the Republic of Uzbekistan

No.	Taxpayers
Tax rates, in percent
1.	Taxpayers, excluding those provided for in paragraphs 2— 4	12
2.	Budget organizations	25
3.	Associations “SOS — Children’s Villages of Uzbekistan”	7
4.	Taxpayers which employ disabled persons for work in specialized workshops, sites and enterprises	4,7

Lower tax rates may be established by the decision of the President of the Republic of Uzbekistan for certain categories of taxpayers.
Article 406. Tax Period. Reporting Period
The tax period shall be the calendar year.
The reporting period shall be the month.
Article 407. Procedure for the Calculation of Tax, Submission of Tax Reporting and Payment of Tax
Tax shall be calculated monthly proceeding from the tax base and established tax rates.
The tax shall be payable at the expense of the employer and certain categories of physical persons.
The obligation to pay tax with respect to employees of diplomatic missions and consular offices of the Republic of Uzbekistan, as well as persons seconded by the Ministry of Foreign Affairs of the Republic of Uzbekistan to quota positions in international intergovernmental organizations, shall be assigned to the Ministry of Foreign Affairs of the Republic of Uzbekistan.
Taxpayer shall submit tax reporting to the tax authorities for the place of tax registration monthly on cumulative basis no later than the 15th day of the month following the reporting period, and as at the end of the year — within time limits for submission of the annual financial statement. Legal entities, which are non-residents of the Republic of Uzbekistan, operating in the Republic of Uzbekistan through permanent establishments, shall submit tax reporting for the year by March 25 of the year following the reporting year.
The tax shall be payable monthly no later than the time limits for submission of tax reporting.
Article 408. Special Considerations Relating to Calculation and Payment of Tax by Certain Categories of Physical Persons
The tax shall be payable compulsorily, irrespective of the number of days the taxpayer worked in a calendar month, by:
1) individual entrepreneurs — in the amount of not less than one basic calculation value per month;
2) physical persons who are in labor relations with an individual entrepreneur (hereinafter referred to as “employees of an individual entrepreneur”) — in the amount of 50 percent of the basic calculation value per month;
3) family members who carry out activities in the form of family entrepreneurship without formation of a legal entity:
by a family member who is registered as an individual entrepreneur — in the amount of not less than one basic calculation value per month;
other family members (except for those under the age of eighteen) — in the amount of 50 percent of the base calculated value per month;
4) by subjects of handicraft activity who are members of the "Hunarmand" association, registered and operating in rural areas, in the first two years of their activity — in the amount of 50 percent of the basic calculation value per month;
5) pupils of schools "Usta — shogird" during the period of their work until reaching the age of twenty five — in the amount of not less than 2.5 times the size of the basic calculation value per year. The payment of the established tax amount shall be counted for the year upon calculation of the length of work experience.
Members of dekhkan crofts, which are created with and without the formation of a legal entity, as well as physical persons, employed in a dekhkan crofts with a private land plot on the area of not less than four hundred square meters, or engaged in raising cattle or poultry not less than 50 heads in this area, shall pay tax in the amount of not less than one basic calculation value per year. In this respect, the head of the dekhkan croft shall pay the tax on a mandatory basis, and other members and indicated physical persons — on a voluntary basis. The payment of the established tax amount shall be counted for the year upon calculation of the length of work experience of a member of a dekhkan croft and a physical person.
Subjects of handicraft activities who are members of the "Hunarmand" association and receive pensions and allowances for old age, shall be exempt from payment of tax, and the rest of the persons, specified in parts one and two of this Article, who are entitled to a pension for old age, as well as disabled persons of I and II groups, shall pay the amount of tax not less than 50 percent of established minimum amount of pension. These benefits shall be granted on the basis of a pension certificate or a certificate from a medical and labor expert commission. Where the right to benefits arises or terminates during a calendar year, the tax shall be recalculated from the month in which this right arose or terminated.
The tax shall be payable by:
persons specified in the first part of this Article — monthly no later than the 15th day of the month in which the entrepreneurial activity has been carried out;
members of dekhkan crofts, which are created with and without the formation of a legal entity — by October 1 of the reporting year. In this respect, the amount of tax shall be calculated on the basis of the size of the basic calculation value established as at the day of payment.
Newly registered individual entrepreneurs and family members, who carry out activities in the form of family entrepreneurship without formation of a legal entity, shall pay the tax starting the month following the month of their state registration as an individual entrepreneur.
The obligation to pay the tax shall be imposed on:
for family members who carry out activities in the form of family entrepreneurship without formation of a legal entity — on a family member, who is registered as an individual entrepreneur acting on behalf of the subject of family entrepreneurship;
for employees of an individual entrepreneur — on an individual entrepreneur with whom they have an employment contract.
The payment order (credit slip) must contain the surname, name, patronymic, taxpayer’s identification number and the period for which the payment is made. With respect to family members, who participate in family entrepreneurship, and individual entrepreneurs, who have hired an employee, a payment order (credit slip) shall be issued separately for each family member and each hired employee of an individual entrepreneur. Where the period is not specified in the payment order (credit slip), the payment shall be deemed carried out for the month (for members of dekhkan crofts — for the year) in which it is made.
The information which is received by the tax authorities with respect to the temporary suspension of the activities of an individual entrepreneur shall be the ground for the suspension of tax calculation for the period in which the individual entrepreneur will not carry out its activities.
The employee record cards which are received by the tax authorities with respect to each employee, issued in accordance with the established procedure, shall be the ground for the suspension of tax calculation for each employee of an individual entrepreneur for the period in which the individual entrepreneur will not carry out its activities.
Where an individual entrepreneur, who has suspended his activities, does not submit to the tax authority the employee record cards for each employee of the individual entrepreneur within the prescribed time limit, the tax calculation with respect to the obligations of the individual entrepreneur shall not be suspended.
Taxpayers, specified in parts one and two of this Article, shall have the right to pay tax on the basis of the amount of income received in the form of labor payment, which is indicated in the declaration of aggregate annual income, at the tax rates specified in Article 405 of this Code, but not less than its minimum amount, established by this Article, on the basis of an application for voluntary payment of tax, filed simultaneously with the submission of a declaration of aggregate annual income. In this respect, the final amount of tax payable shall be determined with account taken of the amounts which are paid in accordance with parts one through five of this Article.
Article 409. Special Considerations Relating to the Calculation and Payment of Tax on a Voluntary Basis
Physical persons, who receive income from an employer which is not obliged to calculate and withhold tax in accordance with the legislation, shall pay tax on a voluntary basis proceeding from the amount of income in the form of labor payment, specified in a declaration of aggregate annual income, on the basis of an application for voluntary payment of tax, filed simultaneously with the submission of a declaration of aggregate annual income.
The persons specified in the first part of this Article shall pay the tax within the time limit for the payment of the tax on income of physical persons, calculated by the tax authorities according to the data in the declaration on the aggregate annual income.
SECTION XV. TAX ON ASSETS
Chapter 59. Tax on the Assets of Legal Entities
Article 410. Taxpayers
Taxpayers of tax on the assets of legal entities (hereinafter in this Chapter referred to as “taxpayers”) shall be:
1) legal entities of the Republic of Uzbekistan which have assets on the territory of the Republic of Uzbekistan which are deemed to be an object of taxation in accordance with Article 411 of this Code;
2) legal entities which are non-residents of the Republic of Uzbekistan which own immovable property in the territory of the Republic of Uzbekistan.
Where it is impossible to establish the situation of the owner of the immovable property, the taxpayer shall be the person who possesses and (or) uses this property.
Where a legal entity acquires immovable property in financial lease (leasing), then it shall be equally deemed a taxpayer.
Article 411. Object of Taxation
The object of taxation of the tax on the assets of legal entities (hereinafter in this Chapter referred to as “tax”) shall be immovable property.
Immovable property shall be understood:
1) buildings and structures which are registerable with the authorities which carry out state registration of rights to immovable property;
2) objects of construction in progress. Objects of construction in progress shall include objects, the construction of which has not been completed within the standard time limit established by the design and estimate documentation for the construction of this object, and where the standard construction time limit has not been established, within twenty four months starting from the month in which the permit for the construction of this object was obtained from the authorized body;
3) railway tracks, main pipelines, communication and power transmission lines, as well as structures which are an integral technological part of these facilities;
4) residential immovable property objects which are recorded on the balance sheet of construction organizations or developers for subsequent sale upon six months have elapsed after the commissioning of the immovable property object.
The following immovable property objects shall not be deemed to be an object of taxation:
1) which are used by non-commercial organizations, within the framework of non-commercial activities;
2) which relate to housing and communal services and other municipal services for general civil purposes, used for their intended purpose. The objects of housing and communal services and other municipal services for general civil purposes shall include objects of sanitary cleaning, landscaping and gardening, outdoor lighting of cities and towns, plumbing (with water intake and treatment facilities), sewerage (with treatment facilities), gas, boiler and heating distribution networks ( with structures on them) for public utilities and the population;
3) public highways;
4) irrigation and collector-drainage network;
5) which relate to civil protection and mobilization purposes, which are recorded on the balance sheet of the taxpayer and are not used in entrepreneurial activity;
6) which are used for environmental protection and sanitation purposes, fire safety. The objects shall be assigned to those which are used for environmental protection, sanitation and fire safety purposes on the basis of a certificate from the corresponding authority for ecology and environmental protection or fire safety;
7) land plots.
Article 412. Tax Base
The tax base shall be:
1) for the objects provided for in paragraphs 1 and 3 of the second part of Article 411 of this Code as the average annual residual value.
The residual value of immovable property shall be determined as the difference between the initial (replacement) value of this property and the depreciation value which is calculated with use of the methods established by the taxpayer's accounting policy.
In this respect, for buildings which are depreciated in full, the tax base shall be its revalued (market conforming) value, determined not less than once every three years;
2) for the objects provided for in paragraph 2 of part two of Article 411 of this Code as the average annual value of construction in progress;
3) for the objects provided for in paragraph 4 of part two of Article 411 of this Code as the average annual value of these objects (in part which are not sold).
The tax base for immovable property of non-residents of the Republic of Uzbekistan shall be the average annual value of this property.
Article 413. Procedure for Determination of the Tax Base
The average annual residual value (average annual value) of objects of taxation shall be determined on an cumulative basis as one twelfth of the amount obtained by summing up the residual values (average annual values) of objects of taxation as at the last day of each month of the tax period.
The tax base for immovable property objects of non-residents of the Republic of Uzbekistan shall be determined on the basis of the value which is indicated in the documents confirming the ownership of these objects.
The tax base shall be determined separately for each object of taxation.
Where a taxpayer carries out non-taxable activities, the tax base shall be determined on the basis of maintenance of separate records of taxable and non-taxable property. Where the separate maintenance of records is not possible, the tax base shall be determined on the basis of the proportion of net proceeds from taxable activities in the total volume of net proceeds.
Article 414. Tax Incentives
Upon calculation of the tax, the tax base shall be reduced by the average annual residual value (average annual value) with respect to:
1) objects of culture and art, education, health care, physical culture (fitness) and sports, social security;
2) property which is recorded on the balance sheet of agricultural enterprises which are used for the production and storage of agricultural products, as well as for the breeding of the silkworm.
The following shall be tax exempt:
1) legal entities, the only participants of which are public associations of persons with disabilities, where disabled persons account for no less than 50 percent, and the share of the labor payment fund of disabled persons is no less than 50 percent of the total labor payment fund of association;
2) producers of energy from renewable energy sources for installations of renewable energy sources (with a nominal capacity of 0.1 MW and more) for a period of ten years from the date of their commissioning.
Article 415. Tax Rates
The tax rate shall be established at 2 percent, unless otherwise provided by this Article.
With respect of objects the construction of which has not been completed within the standard time limit, the tax rate shall be established at 4 percent, unless otherwise provided in part three of this Article.
With respect to empty buildings, non-used production areas, non-residential structures, as well as objects of construction in progress, the legislation may apply measures of impact by establishing increased tax rates, and the tax incentives specified in Article 414 of this Code shall not apply to them.
The tax rate shall be established at 0.2 percent with respect to:
1) public railways, main pipelines, communication lines and power transmission lines, as well as structures which are an integral technological part of that facilities;
2) immovable property and construction in progress, for which a decision on conservation was adopted by the Cabinet of Ministers of the Republic of Uzbekistan.
Article 416. Tax Period
The tax period shall be the calendar year.
Article 417. Procedure for the Calculation of Tax, Submission of Tax Reporting and Payment of Tax
Taxpayers shall independently calculate tax on the basis of the tax base to be determined in accordance with Article 412 of this Code and the corresponding tax rate.
Tax reporting shall be submitted to the tax authority for the place of tax registration once a year upon submission of annual financial statements, and by legal entities which are non-residents of the Republic of Uzbekistan — until February 15 of the year following the reporting tax period.
Where the immovable property is not situated for the place of tax registration of the taxpayer, tax reporting shall be submitted to the tax authorities for the location of the immovable property, excluding the objects specified in paragraph 3 of part two of Article 411 of this Code.
Taxpayers (excluding legal entities which are non-residents of the Republic of Uzbekistan which do not carry out activities in the Republic of Uzbekistan through permanent establishments) shall pay advance tax payments during the tax period.
For calculation of the amount of advance payments, taxpayers shall submit to the tax authorities a certificate of the amount of tax for the current tax period, calculated on the basis of the estimated tax base (average annual residual value (average annual value) of property for the corresponding year) and the corresponding tax rate, before January 10 of the current tax period, and newly created ones — no later than thirty days from the date of state registration. Taxpayers, with respect to which the tax obligations arose during the tax period, shall submit a certificate of the amount of tax no later than thirty days from the date of the tax obligation arose.
Advance payments which are calculated in accordance with part four of this Article shall be paid:
by payers of tax on turnover — not later than the 10th day of the third month of each quarter in the amount of one fourth of the annual tax amount;
by taxpayers who are not payers of the tax on turnover — not later than the 10th day of each month in the amount of one twelfth of the annual tax amount.
Upon the change of the estimated tax base during the tax period, the taxpayer shall have the right to submit an updated certificate of the amount of tax. In this respect, advance payments for the remainder of the tax period shall be adjusted for the tax change in equal shares.
The amount of tax for the tax period shall be payable to the budget no later than the time limits for the submission of tax reporting, with account taken of advance payments.
In the event where the amount of advance tax payments for the tax period have been understated in comparison with the amount of tax payable to the budget, which is indicated in the tax reporting, by more than 10 percent, the tax authority shall recalculate the advance payments proceeding from the actual amount of tax with accruing the interest.
The tax shall be payable by non-residents of the Republic of Uzbekistan, which do not carry out activities in the Republic of Uzbekistan through permanent establishments, once a year not later than February 15 of the year following the reporting tax period.
Chapter 60. Tax on Assets of Physical Persons
Article 418. Taxpayers
Taxpayers of tax on assets of physical persons (hereinafter in this Chapter referred to as “taxpayers”) shall be physical persons, including foreign citizens, unless otherwise provided by international treaties of the Republic of Uzbekistan, as well as dekhkan crofts with and without formation of a legal entity, which own property deemed to be an object of taxation in accordance with Article 419 of this Code.
Where the establishment of the location of the owner of the property is not possible, as well as in the event of the death of the owner of immovable property, the person who possesses and (or) uses this property shall be recognized as a taxpayer.
Article 419. Object of Taxation
The object of taxation of the tax on the assets of physical persons (hereinafter in this Chapter referred to as “tax”) shall be the following property situated in the territory of the Republic of Uzbekistan:
1) residential houses, apartments, summer cottages;
2) non-residential immovable property objects, intended for entrepreneurial activity and (or) deriving income;
3) objects of construction in progress for non-residential purposes.
Non-residential construction objects in progress shall include objects the construction of which has not been completed within the standard time limit established by the design and estimate documentation for the construction of this object, and, where the standard construction time limit has not been established, within twenty four months starting from the month in which the permit for the construction of this facility was obtained from the authorized body;
4) other buildings, premises and structures.
Article 420. Tax Base
The tax base shall be the cadastral value of objects of taxation, determined by the body which carry out the state registration of rights to immovable property.
For the purpose of the calculation of tax, the tax base cannot be less than forty-two million soums.
Where an assessment of the value of the object of taxation by the authorized body for the assessment of property of physical persons is not available, the tax base shall be the notional value of property in the cities of Tashkent and Nukus, as well as in regional centers, equal to five times the amount specified in part two of this Article, and in other cities and rural areas — equal to twice the size.
Where an assessment of the value of the object of taxation by the authorized body for the assessment of property of physical persons is not available, the tax base shall be the notional value of property in the cities of Tashkent and Nukus, as well as in regional centers, equal to five times the amount specified in part two of this Article, and in other cities and rural areas — equal to twice the size.
Article 421. Tax Benefits
The following property shall be tax exempt which is owned by:
1) citizens who are awarded the title "Uzbekiston Kakhramoni", Hero of the Soviet Union, Hero of Labor, awarded the Order of Glory of three degrees.
This benefit shall be granted on the basis of a certificate of conferring the title of "Uzbekiston Kakhramoni", a book of a Hero of the Soviet Union, a Hero of Labor, an order book or a certificate of the defense department;
2) disabled people and participants of war, as well as persons equated to them, who are to be established by legislation.
This benefit shall be granted on the basis of the corresponding certificate of a disabled person (participant) of war or a certificate from the defense department or other authorized body, to other disabled people (participants) — on the basis of a certificate of a disabled person (participant) confirming the right to benefits;
3) parents and widows (widowers) of military personnel and employees of internal affairs bodies who perished as a result of wounds, concussion or injury which are received in course of protection the former USSR, the constitutional order of the Republic of Uzbekistan or performance of other duties of military service or service in the internal affairs bodies, or due to illness connected with being at the front.
This benefit shall be granted on the basis of a pension certificate, which bears the stamp "Widow (widower, mother, father) of a deceased warrior" or "Widow (widower, mother, father) of a deceased employee of the internal affairs bodies" or there is a corresponding entry which is certified by the signature of the head and the seal of agency which issued the pension certificate.
Where these persons are not pensioners, tax benefits shall be granted to them on the basis of a certificate of death of a military serviceman or an employee of the internal affairs bodies which is issued by the relevant bodies of the Ministry of Defense, the State Security Committee or the Ministry of Internal Affairs of the former USSR, as well as the Ministry of Defense, the State Security Service, the Ministry of Internal Affairs, the Ministry of Emergency Situations, the National Guard of the Republic of Uzbekistan, the State Security Service of the President of the Republic of Uzbekistan, the State Customs Committee of the Republic of Uzbekistan and other departments, which provide for military service.
Widows (widowers) of military personnel or employees of internal affairs bodies who perished in course of the defense of the former USSR, the constitutional order of the Republic of Uzbekistan, or performance of other duties of military service or service in the internal affairs bodies, or as a result of an illness connected with being at the front, a tax benefit shall be provided only in the event they did not remarry;
4) persons who use renewable energy sources in residential premises with complete disconnection from existing energy networks, for a time limit of three years starting from the month in which renewable energy sources have been installed.
This benefit shall be granted on the basis of a certificate which is issued by the energy supplying organization which confirms the use of renewable energy sources with a complete disconnection from the existing energy networks.
Property within sixty square meters shall be tax exempt, which is owned by:
1) one of the parents who has ten or more children. This benefit shall be granted on the basis of a certificate of a self-government body of citizens which confirms the existence of children;
2) pensioners. This benefit shall be granted on the basis of a pension certificate;
3) persons with disabilities of I and II groups. This benefit shall be granted on the basis of a pension certificate or a certificate from a medical and labor expert commission.
Persons who are entitled to tax benefits specified in this Article shall independently submit to the tax authorities for the location of the object of taxation documents which confirm the right to those tax benefits.
The tax benefits established by this Article shall apply only to one object of residential immovable property at the choice of the owner, with the exception of the persons specified in paragraph 4 of part one of this Article.
Article 422. Tax Rates. Tax period
Tax rates shall be established in the following amounts: