Unofficial translation Tax code of the Republic of Uzbekistan

No.	Taxable Income
Tax rates, in percent
1.	Dividends and interest	10
2.	Insurance premiums under insurance, coinsurance and reinsurance contracts	10
3.	Telecommunications for international communications, international carriages (freight income)	6
4.	Income from loans raised to finance investment projects, payable by banks and lessors of the Republic of Uzbekistan to foreign financial institutions	0
5.	Income from the provision of services connected with the opening and maintenance of correspondent accounts of banks — residents of the Republic of Uzbekistan and making settlements on them, as well as making settlements by means of international payment cards	0
6.	Other income, excluding income specified in paragraphs 1 — 5	20

Article 354. Procedure for the Calculation of Tax by Tax Agents
The tax base shall be determined by the tax agent separately for each payment of income to a taxpayer.
The amount of tax on income of a non-resident from sources in the Republic of Uzbekistan shall be calculated as the percentage of the tax base corresponding to the tax rate, with account taken of the special considerations provided for by Article 356 of this Code.
The amount of tax shall be calculated and paid in national currency at the rate established by the Central Bank of the Republic of Uzbekistan as at the date of payment of income to a non-resident of the Republic of Uzbekistan, with account taken of the special considerations provided for in Article 356 of this Code.
Calculation and withholding of the amount of tax on income payable to non-residents shall be carried out by the tax agent for all types of income, except for cases when:
1) the tax agent is notified by the non-resident that the income payable relates to the permanent establishment of the non-resident in the Republic of Uzbekistan, and the tax agent has a certificate certified by the tax authority that the non-resident is registered with the tax authority as a permanent establishment of the non-resident;
2) in respect of income payable to a non-resident, Article 353 of this Code establishes a tax rate of 0 percent;
3) the income payable is received during the execution of the production sharing agreement, where the legislation of the Republic of Uzbekistan provides for the exemption of such income from taxation;
4) the income payable shall not be taxed in the Republic of Uzbekistan in accordance with the applicable international treaty of the Republic of Uzbekistan, provided that a non-resident, who has the actual right to receive the corresponding income, submits to the tax agent the confirmation provided for in Article 358 of this Code.
Where the income payable to a non-resident shall be taxed at reduced tax rates in the Republic of Uzbekistan in accordance with the applicable international treaty of the Republic of Uzbekistan, the calculation and withholding of the amount of tax on income shall be made at the relevant reduced tax rates, provided that the non-resident submits to the tax agent the confirmation provided for in Article 358 of this Of the Code. The rules of this part shall apply subject to the provisions of Article 6 of this Code.
1) transfer of monetary resources (or) non-monetary resources, securities, participating interest, goods, assets;
2) transactions (compensation, offset of a homogeneous counter claim, credit upon assignment of the right to claim, novation, debt forgiveness), which are carried out with respect to income of a non-resident of the Republic of Uzbekistan;
3) termination of the obligation to pay income due to the impossibility of performance or the coincidence of the debtor and the creditor in one person.
Where income is paid in non-monetary form or by crediting, as well as in the event where the amount of tax which is subject to withholding exceeds the amount of non-resident's income payable in form of monetary resources, the tax agent shall be obliged to pay tax to the budget in the calculated amount, upon reduction accordingly of the non-resident's income received in non-monetary form, unless otherwise provided by part twelve of this Article.
The income of a non-resident shall be taxed irrespective of whether this non-resident disposes of its income in favor of third parties, its divisions in other states and for other purposes.
The amount of taxes which are paid on income from insurance premiums may be revised upon the occurrence of insured events.
Where an insured event occurred, insurance payments shall be taken into account for a decrease in the income of a non-resident insurer, from which the tax was withheld and paid by the tax agent. A tax agent who has paid income to a non-resident and withheld tax upon payment of income may carry out such recalculation.
Where the tax amount has not been withheld or the provisions of an international treaty of the Republic of Uzbekistan have not been applied appropriately, which results in non-withholding or incomplete withholding of tax, the tax agent shall be obliged to pay to the budget the amount of the non-withheld tax and the corresponding amount of penalty interest.
Where a tax agent pays the amount of tax calculated on the income of a non-resident in accordance with the provisions of this Code, at his own expense without withholding it, the tax agent's duty to withhold and remit tax shall be deemed fulfilled.
Article 355. Procedure for the Submission of Tax Reporting and Payment of Tax by Agents
Tax agent shall submit tax reporting with respect to the amounts of tax on income of non-residents to the tax authority for the place of its tax registration no later than the twentieth day of the month following the month in which the income has been paid.
Unless otherwise provided by Article 356 of this Code, the tax agent shall pay the calculated and withheld tax on income of non-residents to the budget within the following time limits:
1) banks — not later than the fifth day of the month following the month in which the income has been paid, except for income in the form of dividends and interest;
2) the rest — no later than the day following the day of payment of income to a non-resident.
Article 356. Special Considerations Relating to Taxation of Income of Non-Residents of the Republic of Uzbekistan from the Sale of Property
This Article shall apply where one legal entity, which is non-resident, sells to another legal entity, which is non-resident, or a physical person, who is non-resident or resident of the Republic of Uzbekistan, the shares, divvy (units) in the charter fund (authorized capital), immovable property, enterprises as an asset complex, investment shares of mutual investment funds (hereinafter in this Article referred to as “asset”), specified in paragraph 5 of part two of Article 351 of this Code.
The provisions of the first part of this Article shall also apply to foreign structures without the formation of a legal entity.
Income from the sale of assets specified in paragraph 5 of part two of Article 351 of this Code shall be defined as the excess of the amount of the sale of asset over the value of its purchase, which is documented. In the absence of documents which confirm the purchase price of the asset, tax agent shall withhold tax based on the value of sale of asset.
A non-resident which sells the asset shall be obliged to provide the tax agent with copies of documents which confirm the purchase price of the asset (upon availability). The tax agent shall calculate and withhold the amount of tax on the basis of the submitted documents, proceeding from the tax base determined in accordance with paragraph 5 of part two of Article 351 of this Code, and tax rates established by Article 353 of this Code.
Tax agent shall be obliged to submit, independently or through an authorized person, tax reporting with respect to the calculation of tax on non-resident’s income which is received from the sale of asset, before the registration (formalizing) of ownership with respect to the purchased asset, upon the sale of:
1) shares, a divvy (interest) in the charter fund (authorized capital) of legal entities which are residents of the Republic of Uzbekistan — to the tax authority for the place of registration of this legal entity;
2) immovable property which is situated on the territory of the Republic of Uzbekistan — to the tax authority for the location of immovable property;
3) an enterprise which is situated on the territory of the Republic of Uzbekistan as an asset complex — to the tax authority for the place of registration of this enterprise;
4) investment shares of mutual investment funds which are established in accordance with the legislation — to the tax authority for the place of registration of the trustee.
Tax reporting with respect to the income of a non-resident received from the sale of asset shall be prepared in the currency in which the non-resident receives income. Tax reporting shall be accompanied by a copy of the asset purchase and sale agreement, and copies of documents submitted by the seller which confirm the purchase price of the asset (upon availability). Where the value of purchase of asset is not expressed in the currency in which tax reporting is prepared, this value shall be translated into the currency in which tax reporting is prepared at the rate of the Central Bank of the Republic of Uzbekistan as at the date of purchase of the asset. Tax authorities shall issue, within ten working days from the date of submission of tax reporting, the payment notice to the tax agent or his authorized person which indicates the amount of tax in national currency, calculated at the rate of the Central Bank of the Republic of Uzbekistan as at the date of submission of tax reporting, or a certificate which confirms the absence of indebtedness with respect to tax on the sale of asset by a non-resident.
The tax shall be payable to the budget prior to registration (formalizing) of ownership for the purchased asset.
The tax authority shall issue a certificate of tax payment to the tax agent or his authorized person within one business day from the date of submission of a document which confirms the fact of tax payment, which shall be submitted to the authority that registers (formalizes) ownership for the purchased asset.
Bodies, which register (formalize) ownership rights to the purchased asset, shall register (formalize) ownership rights only upon presentation of a certificate from the tax authority.
The provisions of parts three through nine of this Article shall not apply to the sale of shares and investment shares on the exchange or organized over-the-counter securities markets of the Republic of Uzbekistan.
Upon the sale of shares and investment shares on the exchange or organized over-the-counter securities markets, the tax agent shall be deemed to be the clearing house in the securities market of the Republic of Uzbekistan.
Tax agent shall withhold tax from the seller's monetary resources in course of settlement and clearing operations, on the basis of the trading results ledgers with respect to completed transactions for the purchase and sale of shares and investment shares, proceeding from the value of the sold shares (investment shares) and tax rates established by Article 353 of this Of the Code.
The amount of tax shall be payable to the budget in the payment currency simultaneously with the transfer of monetary resources towards payment of the value of shares and investment shares to the seller's account. The tax agent shall be obliged to issue a certificate with respect to the amount of the transaction and tax which is withheld, at the request of the seller of shares and investment shares.
Tax agent shall submit to the tax authority for the place of its tax registration a ledger of transactions for the sale and purchase of shares and investment shares with respect to which tax has been withheld, within the time limits established for the submission of tax reporting, and in the form approved by the State Tax Committee of the Republic of Uzbekistan and the Ministry of Finance of the Republic of Uzbekistan.
Where the seller has documents, which confirm the purchase price of shares and investment shares, the seller shall have the right to file an application for refunding of the overpaid tax to the tax authority for the place of tax registration of the tax agent. The application shall be accompanied by copies of documents which confirm the value of sale and purchase of shares and investment shares, and a copy of a certificate, which is issued by the tax agent, with respect to the amount of the transaction and tax withheld.
The overpaid amount of tax on income of non-residents shall be refunded in the manner established by the Ministry of Finance of the Republic of Uzbekistan and the State Tax Committee of the Republic of Uzbekistan.
Article 357. Special Considerations of Application of Exemption from Taxation or Reduced Tax Rates Under International Treaties of The Republic of Uzbekistan
The procedure for applying the provisions of an international treaty (agreement) of the Republic of Uzbekistan, established by this Article, shall apply to the income of a non-resident provided for in Article 351 of this Code.
Tax agent shall have the right to independently apply tax exemptions or a reduced tax rate where the recipient of income is a tax resident of the state with which an international agreement of the Republic of Uzbekistan has been concluded.
The provisions of the international treaty of the Republic of Uzbekistan shall be applied provided that the recipient of income submits a document which confirms tax residence to the tax agent no later than the date of income payment.
Tax agent shall apply a tax exemption or a reduced tax rate provided for by an international treaty of the Republic of Uzbekistan and the rules established in Article 6 of this Code upon payment of income to a non-resident in the form of dividends, interest and (or) royalties, provided that the non-resident has the actual right to these income. A tax agent shall have the right to request confirmation from a non-resident that this non-resident has the actual right to receive the corresponding income.
Upon payment of the income specified in part four of this Article to a non-resident who has an actual right to income, through an intermediary, a tax agent shall have the right to apply a tax exemption or a reduced tax rate provided for by an international treaty of the Republic of Uzbekistan with the state, the resident of which is an actual recipient of income, where a non-resident submits additionally an agreement (contract) and (or) other documents on the basis of which income is paid, which reflect the amount of income for each person who is the actual recipient through an intermediary. Such documents must contain:
1) last name, first name, patronymic (where it is indicated in the identity document) of a physical person or the name of a legal entity;
2) number of tax registration in the country of residence or its equivalent (upon availability);
3) number of state registration in the country of residence (or its equivalent).
The actual recipient of income in accordance with the provisions of the international treaty of the Republic of Uzbekistan, shall have the right to a refund of excessively withheld tax in the event where tax has been paid to the budget by a tax agent. Refunds to a non-resident of excessively withheld tax shall be made in accordance with the procedure established by Chapter 12 of this Code.
In the event where a non-resident receives income from the provision of services within the framework of one or connected projects for a given tax agent, for the purpose of applying this Article, the tax agent shall establish the fact with respect to the formation of a permanent establishment by the non-resident, including on the basis of an agreement (contract) for the provision of services. Upon establishment of the fact of the formation of a permanent establishment by a non-resident in the Republic of Uzbekistan, the tax agent shall not be entitled to apply the provisions of the international treaty of the Republic of Uzbekistan with regard to the exemption of non-resident's income from taxation.
Where the tax agent does not apply the provisions of the international treaty of the Republic of Uzbekistan, the tax agent shall be obliged to withhold and transfer tax at the source of payment in the manner and within the time limits specified by this Code.
Article 358. Requirements With Regard to a Document Which Confirms Tax Residency
For the purpose of application of the provisions of this Section, a document which confirms tax residency shall be an official document which confirms that a non-resident who receives income is a resident of the state with which the Republic of Uzbekistan has concluded an international treaty of the Republic of Uzbekistan, and which presented in one of the following types:
1) the original, which is certified by the competent authority of the foreign state, that the non-resident is a resident of that state. In this respect, the submission of such a document shall be carried out with the implementation of its consular legalization or with an apostille affixed in the manner prescribed by legislation;
2) a notarized copy of the original document which satisfies the requirements of paragraph 1 of this part;
3) a paper copy of an electronic document which confirms tax residency, posted on the Internet resource of the competent authority of a foreign state.
Foreign banks and international interbank telecommunications systems shall not need to confirm the fact of the permanent situation of a foreign bank or international interbank telecommunications system in a state with which there is an international treaty, which regulates taxation issues, where such situation is confirmed by information from publicly available information sources.
Legalization in the manner determined by the legislation of the Republic of Uzbekistan shall not be required where:
1) a document which confirms tax residency is posted on the Internet resource of the competent authority of a foreign state;
2) another procedure of verification of the authenticity of the signature and seal of the person (persons) indicated in part one of this Article is established:
a) by an international treaty of the Republic of Uzbekistan;
b) within the framework of the mutual agreement procedure between the competent authority of the Republic of Uzbekistan and the competent authority of a foreign state.
A non-resident shall be recognized as a tax resident of the state with which the Republic of Uzbekistan has concluded an international treaty, within the period of time, which is specified in the document that confirms the tax residency of the non-resident.
Where the document, which confirms tax residency, does not specify the time period of tax residency, the non-resident shall be recognized as a tax resident of the state with which the Republic of Uzbekistan has concluded an international treaty of the Republic of Uzbekistan, within the calendar year in which such a document has been issued (posted on the Internet resource of the competent authority of the foreign state).
Chapter 51. Special Considerations Relating to Taxation of Income of Individual Entrepreneurs
Article 359. Special Considerations of Recording Taxable Income and Deductible Expenses
Individual entrepreneurs shall be obliged to maintain records of taxable income and deductible expenses in the manner prescribed for legal entities, unless otherwise provided by this Article and part eight of Article 360 of this Code.
Individual entrepreneurs, who are engaged in trading activities, shall be obliged to keep records of taxable income and performed commodity transactions in the registers for recording income and commodity transactions.
The registers for the recording of taxable income and commodity transactions shall be:
1) a ledger for the recording taxable income and commodity transactions of an individual entrepreneur, who is engaged in retail trade;
2) a ledger of sales receipts.
The form of registers for recording of taxable income and commodity transactions shall be approved by the State Tax Committee of the Republic of Uzbekistan.
Registers for the recording of taxable income and commodity transactions shall be registered by the tax authority for the place of tax registration of an individual entrepreneur on the basis of an application filed by an individual entrepreneur.
An individual entrepreneur shall keep the registers for recording of taxable income and commodity transactions for five years from the date of the last entry and must be numbered, laced and sealed by the corresponding tax authority.
Article 360. Special Considerations Relating to Determination of Object of Taxation and Tax Base
The object of taxation and the tax base shall be determined in the manner prescribed by Articles 295 and 296 of this Code, with account taken of the special considerations provided for by this Article.
The aggregate income shall consist of incomes, which are received by an individual entrepreneur in the framework of entrepreneurial activities.
A physical person must indicate that he is acting as an individual entrepreneur, upon conclusion of transactions connected to his entrepreneurial activity, unless this clearly follows from the very environment of the transactions.
All expenses, which are connected to the receipt of taxable income, shall be deducted from the aggregate income of an individual entrepreneur upon determination of the tax base unless otherwise provided by part five of this Article, except for expenses which are not deductible in accordance with Chapter 44 of this Code.
The depreciable assets shall be depreciated with respect to total income, provided that the asset is used in entrepreneurial activity and that the connection of expenses with entrepreneurial activity is clearly justified.
An individual entrepreneur shall have the right to choose a simplified procedure of the calculation of the tax base.
The tax base in line with a simplified procedure shall be determined at the rate of 25 percent of aggregate income.
Where an individual entrepreneur chooses a simplified procedure of the calculation of the tax base, he shall be exempt from the obligation to maintain records of expenses for the purpose of calculating tax, with the exception of individual entrepreneurs specified in part two of Article 359 of this Code.
For the application of the simplified procedure of the calculation of the tax base, individual entrepreneurs shall submit to the tax authority for the place of tax registration a notice in the form established by the State Tax Committee of the Republic of Uzbekistan, within the following time limits:
1) newly registered — before the commencement of entrepreneurial activity;
2) those who switched to payment of tax on profit, including voluntarily, — simultaneously with sending to the tax authority for the place of tax registration a notice on the transition to payment of tax on profit;
3) the rest — no later than January 25 of the current year.
The application of the simplified procedure of the calculation of the tax base by individual entrepreneurs shall commence:
1) for those specified in paragraph 1 of part nine of this Article — from the commencement of entrepreneurial activity;
2) for those specified in clause 2 of part nine of this Article — from the first day of the month following the month on which the individual entrepreneur submitted to the tax authority a notice of the transition to payment of tax on profit and an application for calculating the tax base in a simplified procedure;
3) for those specified in clause 3 of part nine of this Article — from January 1 of the current year.
Voluntary refusal from the simplified procedure and the transition to the general procedure of the calculation of the tax base, provided for in part one of this Article, shall be carried out from the beginning of the next tax period.
A notice on the transition to a general procedure of the calculation of the tax base shall be submitted to the tax authority for the place of tax registration in the form established by the State Tax Committee of the Republic of Uzbekistan, no later than one month before the start of the tax period.
Article 361. Income Which are Not Taken Into Account upon Taxation
The following shall not be taken into account upon taxation:
1) income of an individual entrepreneur subject to taxation with tax on income of physical persons, income from the sale of immovable property which belongs to him by right of ownership, as well as by virtue of other proprietary right that allows ownership and (or) use of property;
2) income from the sale of goods (services) which are received during the period of payment of tax on income of physical persons and turnover tax before the transition of an individual entrepreneur to payment of tax on profit.
Article 362. Procedure for the Calculation of Tax and Submission of Tax Reporting
The amount of tax on the basis of the results of the reporting (tax) period shall be determined by an individual entrepreneur independently.
The amount of tax at the end of the reporting period shall be calculated on an accrual basis from the beginning of the tax period as the percentage of the tax base corresponding to the tax rate, unless otherwise provided by this Article.
An individual entrepreneur shall submit tax reporting at the end of each reporting and tax period to the tax authority for the place of tax registration, irrespective of the presence or absence of objects of taxation.
An individual entrepreneur shall submit tax reporting in the following time limits:
on the results of the reporting period — no later than the twentieth day of the month following the reporting quarter;
on the results of the tax period — no later than March 1 of the year following the tax period which has elapsed.
Article 363. Procedure for Payment of Tax
Tax shall be paid in accordance with the procedure provided for in Article 340 of this Code.
SECTION XIII. TAX ON INCOME OF PHYSICAL PERSONS
Chapter 52. Taxpayers, Object of Taxation and Tax Base
Article 364. Taxpayers
Taxpayers of tax on income of physical persons (hereinafter in this Section referred to as “taxpayers”) shall be deemed:
1) physical persons who are residents of the Republic of Uzbekistan;
2) physical persons who are non-residents of the Republic of Uzbekistan, and receives income from sources in the Republic of Uzbekistan.
Article 365. Object of Taxation
The object of taxation of tax on income of physical persons (hereinafter in this Section referred to as “tax”) shall be the total income of the taxpayer.
Article 366. Tax Base
The tax base shall be:
1) for physical persons who are residents of the Republic of Uzbekistan — total income, with account taken of the application of tax benefits provided for in this Section;
2) for physical persons who are non-residents of the Republic of Uzbekistan — the total income without the application of tax benefits provided for in this Section.
Upon determination of the tax base, account shall be taken of income of a taxpayer which he has received in monetary form or in kind or which he has acquired the right to dispose of, and of income in the form of material gain. In this respect, certain types of income of a taxpayer may not be taken into account or taken into account in the composition of total income in the manner and on the conditions established by this Section.
Income of a taxpayer which is expressed in foreign currency shall be translated into national currency on the basis of the official exchange rate of the Central Bank of the Republic of Uzbekistan which is established as at the date on which the income is actually received.
The tax base shall be determined separately for each type of income for which different tax rates have been established.
The tax base shall be determined on an accrual basis from the beginning of the tax period, unless otherwise provided by this Code.
The tax base shall also include the aggregate profit of controlled foreign companies, which is determined in accordance with Section VII and Article 208 of this Code.
The tax base shall be adjusted in the cases and in the manner prescribed by this Section.
In the cases provided for in Section VI of this Code, the income of taxpayer shall be adjusted in the manner prescribed in Chapter 20 of this Code.
Where any deductions are made from a taxpayer’s income on the taxpayer’s instructions or by decision of a court or of other bodies and organizations, such deductions shall not reduce the tax base.
Article 367. Date of Receipt of Income
For the purposes of this Section, the date of receipt of income shall be defined as the day:
1) on which income is paid, including the transfer of income to the taxpayer’s bank accounts or, on the taxpayer’s instructions, to accounts of third parties — where income is received in monetary form;
2) on which income in kind is transferred — where income is received in kind;
3) on which goods (services) are acquired or securities are acquired — where income is received in the form of material benefit. Where payment for acquired securities is made after ownership of the securities is transferred to the taxpayer, the date of receipt of income shall be defined as the day on which a relevant payment is made by way of payment for securities acquired;
4) on which the offsetting of counter-claims of a similar kind occurs;
5) on which bad debt is written off by a tax agent in accordance with the established procedure;
6) the last day of the month in which an expense report was approved after the return of an employee from a business trip;
Where income is received in the form of payment for labour, the date of the receipt of such income by the taxpayer shall be deemed to be the last day of the month for which income was credited to him for the performance of employment duties in accordance with the employment agreement (contract), as well as the date of payment of compensation for the period of job search, as provided by labor legislation.
In the event that an employment relationship is terminated before the end of a calendar month, the date of the receipt by the taxpayer of income in the form of payment for labour shall be considered to be the last day of work for which income accrued to him.
For income in the form of amounts of profit of a controlled foreign company, the date of receipt of income shall be the last day of the tax period for tax, following the calendar year which covers the date of the end of the period, for which the financial statement for the financial year is prepared in accordance with the legislation of the country of registration of the foreign company or structure.
Where there is no obligation to prepare and submit financial statement in accordance with the legislation of the country of registration of the controlled foreign company, the date of receipt of income in the form of profit amounts of that company shall be the last day of the calendar year following the calendar year for which its profit is determined.
Chapter 53. Aggregate Income
Article 368. Aggregate Income
Unless otherwise established by this Section, the aggregate income shall consist of income received by the taxpayer during the reporting (tax) period:
1) from sources in the Republic of Uzbekistan and abroad — for physical persons who are residents of the Republic of Uzbekistan;
2) from sources in the Republic of Uzbekistan — for physical persons who are non-residents of the Republic of Uzbekistan.
Article 369. Income Which is Not Included In the Aggregate Income
Shall not be included in the aggregate income:
1) one-time state monetary remuneration or the value of equivalent memorable gifts, which are received by taxpayers who are awarded state awards and state rewards of the Republic of Uzbekistan, as well as one-time monetary remuneration and gifts given out on the basis of a decision of the President of the Republic of Uzbekistan or the Cabinet of Ministers of the Republic of Uzbekistan;
2) remuneration for donation, as well as the amounts which are received by employees of medical institutions for collecting blood;
3) received alimony;
4) the amounts received by citizens in the form of insurance compensation;
5) scholarships which are paid in the amount and in the manner prescribed by legislation;
6) monthly compensatory monetary payments for paying off housing and communal services in accordance with the legislation;
7) state pensions, social insurance benefits (for pregnancy and childbirth, at the birth of a child, for an extra day off, for burial);
8) compulsory accumulative pension contributions, interest income on them, as well as accumulative pension payments;
9) income received as a result of the labor activity of self-employed persons, in the manner determined by legislation;
10) income from international bonds issued by the Republic of Uzbekistan and legal entities which are residents of the Republic of Uzbekistan.
Expenses of tax agents specified in Article 386 of this Code shall not be deemed income of a taxpayer where incurred in favor of physical persons in order:
1) to provide workers who are employed on works with unfavorable labor conditions with milk, therapeutic and prophylactic nutrition, carbonated salt water, individual means of protection and hygiene in the manner prescribed by legislation;
2) to carry out payments by the trade union committee, including material assistance, to members of the trade union at the expense of membership fees, excluding remuneration and other payments for the performance of labor duties to employees of the trade union committee;
3) to render material assistance in connection with emergency circumstances within the amount of damage caused;
4) to deliver employees to the place of work and back;
5) to arrange ritual ceremonies, festive celebrations, entertainment expenses, purchase of transport cards for using for official travels of employees in city passenger transport, as well as other expenses of the employer which are connected with ensuring working and rest conditions for employees and are not the income of certain physical persons;
6) to issue or in connection with the sale at reduced prices to the employee of special clothing, special footwear, uniforms which are necessary for the performance of official duties, as well as for provision of certain categories of employees with nutrition upon the performance of their official duties in cases provided for by legislation;
7) to pay off expenses or reimburse them which are incurred for travel, transportation of property, rental of premises (lifting) where an employee has been transferred or moved to work in another location;
8) compensation payments for business trips:
payments actually made for commute to and back from the place of business trip, including payment for booking, based on supporting documents. In the absence of travel documents — in the amount of the cost of travel by rail (intercity bus, if there is no rail link), but not more than 30 percent of the relevant air ticket cost;
payments actually made for renting a dwelling. In the absence of supporting documents for residence — within the limits established by legislation;
payments for booking accommodation based on supporting documents;
daily allowance paid for the time limit spent on a business trip, within the limits established by legislation;
other documented payments established by legislation;
9) compensation payments (compensation) within the limits provided for by legislation, to an employee:
whose permanent work takes place on the way, has a mobile and (or) traveling nature, or is performed on a rotational basis;
for using a personal car for business rides, except for business trips;
field contentment;
other compensatory payments (compensation) in the manner and in accordance with the norms provided for by legislation, with the exception of those specified in Articles 373 and 377 of this Code;
10) payments for compensation of harm which is connected to work injury or other damage to health, in the amount of:
monthly payment as a percentage of the average monthly earnings which has been received by the victim before the work injury, the corresponding degree of loss of professional ability to work (in case of work injury of an underage person, harm shall be compensated based on the amount of his earnings (income), but not less than 1.76 times of the minimum wage established by legislation);
70.3 percent of the minimum monthly wage for additional expenses for victims in need of special medical care;
17.6 percent of the minimum monthly wage in the form of additional expenses for household care of the victim;
the annual average earnings of the injured person in the form of a lump sum paid by the employer in connection with harm to the health of the employee;
11) payments in connection with the death of the breadwinner in the amount of:
the share of the average monthly earnings of the deceased which is attributable to non-employable persons who were dependent on the deceased breadwinner, and entitled to compensation for harm in connection with his death;
six average annual earnings of the deceased in the form of a lump sum benefit to persons who are entitled to compensation for harm in connection with the death of the breadwinner;
12) resources transferred for the education of students on a paid-contract basis under direct contracts with a higher educational institution in the Republic of Uzbekistan;
13) for advanced training and retraining of employees;
14) income in monetary or in kind, which is received as a result of the taxpayer's participation in programs aimed at increasing the activity of clients in the purchase of goods and services and providing for the accrual or receipt of bonuses (points, other units characterizing the client's activity in purchasing goods (services)) on the basis of corresponding programs. Incomes shall be included in the aggregate income of the taxpayer in the following cases:
where the taxpayer participates in the programs specified in paragraph one of this clause, the joining to which is not carried out on the terms of a public offer;
where the taxpayer joins the programs specified in paragraph one of this clause, the terms of the public offer of which provides for an acceptance period of less than thirty days and (or) which provides for the possibility of early withdrawal of the offer;
upon payment of the income specified in paragraph one of this clause, as a reward to persons who have labor relations with the organizer of the programs, for the performance of official duties, as well as payment (remuneration) for the goods supplied (work performed, services rendered) by the taxpayer or material assistance.
Article 370. Composition of Aggregate Income
The aggregate income shall include:
1) income in the form of payment for labor in accordance with Article 371 of this Code;
2) income from property in accordance with Article 375 of this Code;
3) income in the form of material gains in accordance with Article 376 of this Code;
4) other income in accordance with Article 377 of this Code.
Article 371. Income in the Form of Payment for Labor
Income in the form of payment for labor shall be deemed all payments accruable and payable to an employee who is has an employment relationship with an employer and who performs work under a concluded labor agreement (contract):
accrued wages for actually performed work, which is calculated on the basis of piece rates, tariff rates and official rates of pay in accordance with the accepted forms and systems of payment for labor;
allowances for academic degrees and honorary titles;
incentive payments in accordance with Article 372 of this Code;
compensation payments (compensation) in accordance with Article 373 of this Code;
payment for unworked time in accordance with Article 374 of this Code;
other payments, which are payment for actually performed work.
Income in the form of payment for labor shall also include payments:
to physical persons under contracts of a civil nature (except for income from individual entrepreneurial activity), the subject of which is the performance of work and the provision of services;
to members of the governing body of a legal entity (supervisory board or other similar body), which are carried out by that legal entity;
monetary allowances, monetary rewards and other payments payable in connection with the performance of service (performance of official duties) to military servicemen of the Ministries of Defense, Internal Affairs and Emergencies of the Republic of Uzbekistan, the State Security Service of the Republic of Uzbekistan, the National Guard of the Republic of Uzbekistan, the State Security Service of the President of the Republic of Uzbekistan , privates, sergeants and officers of the internal affairs bodies and employees of the State Customs Committee of the Republic of Uzbekistan and other agencies which provide for military service.
Article 372. Incentive Payments
The incentive payments shall include:
1) remuneration on the basis of the results of work for the year;
2) incentive payments provided for by the statute of a legal entity on bonuses;
3) allowances to tariff rates and salaries for professional skills, mentoring;
4) additional payments for vacation and material assistance not specified in paragraph 10 of Article 377 of this Code;
5) remuneration and payments for length of service;
6) payment for a rationalization proposal;
7) one-time bonuses not connected to labor results.
Article 373. Compensation Payments (Compensation)
Compensation payments (compensation) which are subject to be included in income in the form of labor payment shall equally include:
1) additional payments related to work in areas with unfavorable natural and climatic conditions (increments for work experience, payments according to established coefficients for work in highland, desert and waterless areas). In this respect, the maximum amount for the accrual of coefficients to the wages of employees of legal entities who work in desert and waterless areas, highlands and in areas with unfavorable natural and climatic conditions shall be determined at 1.41 times of the minimum wage established as at the date of accrual;
2) increments for work in difficult, harmful, especially harmful working conditions, including increments to wages for continuous work experience in such conditions, according to the list of professions and the list of works which have been approved by the Cabinet of Ministers of the Republic of Uzbekistan;
3) increments and surcharges to tariff rates and rates for pay for night work, overtime work, work on weekends and holidays (non-working) days, provided for by the schedule of the technological process;
4) increments for work in multi-shift environment, as well as for job and positions combination, extension of service areas, increasing the volume of work performed, performing the duties of temporarily absent workers along with their main work;
5) increments payable in excess of the norms established by legislation to the wages of employees whose permanent work takes place on the way, has a mobile and (or) traveling nature, and also provides for the performance of work on a rotational basis;
6) the amounts payable for performance of work on a rotational basis in the amount of the tariff rate or official rate of pay for calendar days spent in travel from the location of the employer (assembly point) to the place of work and back which are provided for in the rotation work schedule, as well as for the days during which workers’ travel is delayed owing to meteorological conditions and the fault of transport organizations;
7) surcharges to employees who are constantly engaged in underground work, for the standard time of their movement in the mine from the dump to the place of work and back;
8) field allowance in excess of the norms established by legislation;
9) daily allowance in excess of the norms established by legislation during business trips;
10) payments for days of rest (time off) provided to employees in connection with excess working hours where a rotational method of organizing work, the summarized recording of working hours are used, and in other cases established by legislation;
10) payments for days of rest (time off) provided to employees in connection with excess working hours where a rotational method of organizing work, the summarized recording of working hours are used, and in other cases established by legislation;
12) amounts which are received in compensation for harm with regard to injury at work or other damage to health, in excess of the amounts specified in paragraph 10 of the second part of Article 369 of this Code;
13) the cost of meals and travel tickets or reimbursement of the cost of meals and travel tickets.
Article 374. Payment for Unworked Time
Payment for unworked time shall include:
1) payment in accordance with the legislation for:
a) annual basic (main extended) vacation, as well as monetary compensation where it is not used, including upon termination of an employment contract with an employee;
b) additional leave for workers in certain industries for work in unfavorable and special working conditions, as well as for work in difficult and unfavorable natural and climatic conditions;
c) leave for study and sabbatical;
d) additional leave for women with two or more children under the age of twelve or a child with a disability under the age of sixteen;
2) payments to employees on forced leave with partial retention of basic wages;
3) payment to donor employees for the days of examination, blood donation and rest, provided after each donation day;
4) labor payment for the performance of state or social duties in accordance with the Labor Code of the Republic of Uzbekistan;
5) the wages retained at the place of their main work for employees engaged in agricultural and other work;
6) payment of the difference in official rates of pay to employees who are employed from other legal entities with the preservation of the size of the official rates pf pay at the previous place of work for a certain period, as well as in case of temporary replacement;
7) wages at the place of main work of employees during their training with a break from work in the system of retraining and advanced training of personnel;
8) payment of downtime through no fault of the employee;
9) surcharge to employees in case of temporary non-employability;
10) payment for the time of forced absenteeism or performance of lower-paid work in accordance with the legislation or by the decision of the employer;
11) payment of preferential hours for persons under eighteen years of age, breaks in the work of mothers to feed the child, as well as the time associated with the passage of a medical examination;
12) labor payment of skilled workers who are released and not released from their main work and who are involved in training, retraining and advanced training of workers, to guide the industrial practice of pupils and students;
13) additional payments to pensions and allowances, scholarships payable at the expense of the employer;
14) allowances payable at the expense of the employer to young specialists during their leave upon graduation from a higher education institution.
Article 375. Assets Income
Asset income shall include:
1) interest;
2) dividends;
3) income from renting out property;
4) income from the sale of property owned by the taxpayer. Income from the sale of property shall be defined as the excess of the amount of sale of this property over the expenditures of its purchase, which is confirmed with documents. In the absence of documented confirmation of the indicated value, income shall be deemed the value of the sold property, and with respect to the immovable property, it shall be the positive difference between the sale price and the cadastral value;
5) income which is received by a taxpayer who is the owner of a patent (license) for industrial property objects, a selection achievement, upon assignment of a patent, concluding a license agreement;
6) royalties;
7) income received from the fiduciary with respect to the assed transferred to fiduciary management;
8) income from REPO transactions, which are determined in accordance with the procedure provided for in Article 324 of this Code;
9) income from operations with securities and (or) derivative financial instruments of forward transactions, determined in the manner prescribed by Articles 327 — 329 of this Code;
10) income in the form of profit of a controlled foreign company in the cases and in the manner established by Section VII of this Code;
11) income from participation in joint activities on the basis of a simple partnership agreement (agreement on joint activities), determined in accordance with Article 319 of this Code;
12) other income of an asset nature which are not specified in paragraphs 1-11 of this Article.
Article 376. Income in the Form of Material Gain
The following shall be income of a taxpayer which is received in the form of material gain, unless otherwise provided by part two of Article 369 of this Code:
1) payment by a legal entity in the interests of the taxpayer for goods (services), property rights, including for:
education, upbringing of taxpayer's children in preschool educational institutions;
utilities, housing provided to taxpayers, operation costs, dormitory space, or the value of their reimbursement;
the value of vouchers for sanatorium treatment, recreation, inpatient and outpatient treatment or the value of their reimbursement;
other expenses of a legal entity which are income of a taxpayer;
2) the value of assets released without charging, including under a donation contract, and services rendered in the interests of the taxpayer;
3) the negative difference between the price at which goods (services) are sold to taxpayers and the value of these goods (services), which are calculated in accordance with parts two and three of this Article;
4) the amount of benefits which are provided to employees in accordance with the legislation for travel by rail, air, river, road and city electric transport;
5) the amounts of the physical person’s debt to legal entity which have been written off by the decision of that legal entity;
6) amounts which are paid by a tax agent for payments which are subject to withholding, but have not been withheld from the taxpayer.
Where a taxpayer receives goods (services) from a legal entity, their value shall be determined based on the purchase price or the cost of these goods (services).
Where a taxpayer receives excisable goods or goods (services) subject to value added tax from a legal entity, the corresponding amount of excise tax and value added tax shall be taken into account in the value of such goods (services).
Article 377. Other Income
Other income of a taxpayer shall be:
1) allowances and other types of aid rendered to taxpayers by citizens' self-government bodies, charitable and environmental funds;
2) income from the sale of live animals (livestock, poultry, fur and other animals, fish and others) and their slaughter products in raw or processed form, silkworms, livestock products, beekeeping and plant growing in natural and processed form;
3) the value of property, property rights received without charging from physical persons (including under donation agreements);
4) prizes, monetary rewards awarded for prize places in competitions, shows, contests;
5) wins;
6) amounts received under grants from the grantor, including those received from foreign states;
7) income received by the taxpayer for the created works (objects) of science, literature and art;
8) a one-time monetary reward received by athletes for prize places in international sports competitions;
9) severance pay and other payments made in accordance with labor legislation upon termination of an employment contract (agreement) with an employee;
10) material assistance which is provided to:
family members of a deceased employee or to employee in connection with the death of a member of his family;
to an employee in connection with work injury, occupational disease or other damage to health;
in the form of payments for the birth of a child, marriage of an employee or his children;
in the form of distributed agricultural products or monetary for its purchase;
11) payments which are made by a tax agent to non-working pensioners;
12) monetary payments for compensation for moral harm;
13) income derived from price adjustments in the cases and in the manner prescribed by Section VI of this Code;
14) income received under the contract for the assignment of the right to claim, determined in the manner prescribed by Article 300 of this Code;
15) other income of the taxpayer not specified in Articles 371 — 376 of this Code.
Chapter 54. Tax Incentives
Article 378. Non-Taxable Income
The following types of income shall not be taxable:
1) the amount of material aid:
to family members of a deceased employee or employee in connection with the death of a member of his family -— up to 4.22 times of the minimum wage ;
in other cases specified in Article 377 of this Code — up to 4.22 times of the minimum wage for the tax period;
2) the amount of full or partial compensation by legal entities of the cost of vouchers, excluding touristic:
to persons with disabilities, including those who do not work for this employer, to sanatoriums and health institutions situated in the territory of the Republic of Uzbekistan;
for the children of their employees up to sixteen years old (students — up to eighteen years old) in children's and other health camps, as well as in sanatorium and health resort and health institutions situated in the territory of the Republic of Uzbekistan;
3) the amounts which are paid by the employer for outpatient and (or) inpatient medical care for their employees and their children, as well as the employer's expenses for treatment and medical care, the purchase of technical means for the prevention of disability and rehabilitation of persons with disabilities. These incomes shall be tax exempted in the event of non-monetary payments by employers to health care organizations for treatment, medical care of employees, as well as in the event of the release of funds intended for these purposes directly to the employee on the basis of documents issued by health care organizations, and in the absence of employee — to his family members, parents, or crediting funds intended for these purposes to the employee's bank account;
4) the amount of wages and other amounts in foreign currency received by citizens of the Republic of Uzbekistan from budgetary organizations in connection with their assignment to work outside the Republic of Uzbekistan, within the amounts established by legislation;
5) income received from the performance of temporary one-time work, where hiring for such work is carried out with the assistance of centers for provision of temporary one-time work;
6) a one-time monetary reward received by athletes for prizes in international sports competitions;
7) income from the sale of assets owned by a taxpayer on the basis of the right of private ownership, except for income from the sale of:
securities (excluding equity securities which are sold on the stock exchange), shares (divvy) in the charter fun (authorized capital) of legal entities;
non-residential premises;
residential premises owned by the taxpayer for less than thirty-six calendar months;
8) income from the sale of live animals (livestock, poultry, fur and other animals, fish and others) grown in households, including dekhkans’ (peasants) holding, and their slaughter products in raw or processed form (except for industrial processing), livestock products, beekeeping and plant growing, with the exception of products of ornamental horticulture (floriculture), in natural and processed form;
9) the value of item prizes received at international and republican contests and competitions;
10) received from the employer in value up to 2.11 times of the minimum wage during the tax period:
gifts in kind to employees;
gifts and other types of assistance to non-working pensioners and persons who have lost the ability to work, who were previously employees of this employer, family members of a deceased employee;
11) income in monetary form and in kind which is received from physical persons through inheritance, donation or without charging, with the exception of:
remuneration paid to heirs (successors) of authors of works of science, literature and art, performers of works of literature and art, as well as discoveries, inventions and industrial designs;
immovable property, motor vehicles, securities, shares in the charter fund (authorized capital) of legal entities between persons who are not close relatives;
12) winnings on state bonds, as well as interest on state securities of the Republic of Uzbekistan;
13) income from savings certificates, state securities, as well as interest and winnings on deposits in banks;
14) the amount of the grant received from non-governmental non-commercial organizations, international and foreign organizations and foundations, as well as within the framework of international treaties of the Republic of Uzbekistan in the field of scientific and technical cooperation directly by the taxpayer from the grantor where the presence of the conclusion of the authorized body exists;
15) the amount of wages and other income of taxpayers allocated to the payment of insurance premiums which are paid to legal entities which are licensed to carry out insurance activities in the Republic of Uzbekistan for long-term life insurance (life insurance industry of all classes), subject to:
payment of insurance premiums in a non-increasing order and receiving a lump sum payment of the insured sum not earlier than twelve months from the date of commencement of the insurance period under the contract. Where an insured event occurred other than the survival of the insured person to a certain age or time limit for long-term life insurance elapsed, the sum insured may be paid without observing the specified conditions;
receipt of rent (annuity) not earlier than 12 months from the date of the commencement of the insurance period under the contract and the presence of a balance of accumulated funds (reserve) of at least four times the size of the specified rent (annuity) as at the date of such payment;
receipt of rent (annuity) earlier than 12 months from the date of the commencement of the insurance period under the contract, where the amount of actually paid insurance premiums at the beginning of the payment of the initial rent (annuity) is not less than the annual amount of the insurance premium under the contract. In this respect, the payment of rent (annuities) must be carried out in compliance with the requirements of paragraph three of this clause.
In case the conditions of this paragraph are violated or the contract early terminated and the insurer returns part or all of the insurance premium, the amount of the returned insurance premium shall be taxed at the insurer;
16) the amount of wage and other taxpayer's taxable income, which are directed to:
payment for education (one's own, as well as one's own children or spouse (wife) — under the age of twenty-six) in higher educational institutions of the Republic of Uzbekistan;
provision of patronage support, but not more than 50 percent of the tax base;
repayment of mortgage loans and interest accrued, in the aggregate amount of up to 15 million soums during the tax period, provided that the value of an individual residential house or apartment in an multi-apartment building does not exceed 300 million soums and was purchased with account taken of a subsidy from the budget to compensate for a part initial payment and (or) interest on the mortgage loan. This benefit shall apply to the borrower and co-borrowers, provided that the amount of reduction in taxable income provided to all taxpayers eligible for the benefit does not exceed 15 million soums in aggregate during the tax period;
individual accumulative pension accounts of citizens in the People's Bank of the Republic of Uzbekistan on a voluntary basis;
17) income in the form of shares, stocks and divvy received without consideration from physical persons (including under donation agreements), where they are transferred between close relatives.
Where control rights has been received with respect to a foreign structure without the formation of a legal entity or a foreign legal entity for which, in accordance with the legislation of the country of registration, participation in capital is not provided, such a receive of rights shall not be deemed receiving income or the emergence of the right to dispose of the income, if those rights are transferred between members of the one family and (or) close relatives;
18) income of taxpayers who are involved in seasonal agricultural work for picking raw cotton, which they received for the performance of these work;
19) income of taxpaying miners, received from the sale of precious metals extracted by artisanal mining, in the manner prescribed by legislation).
Article 379. Tax Exempt Physical Persons
Incomes of the following physical persons shall not be taxable:
1) heads and personnel of diplomatic missions, officials of consular offices of foreign states, their family members residing with them, in case they are not citizens of the Republic of Uzbekistan, with respect to all income, except for those derived from sources in the Republic of Uzbekistan which are not connected with the diplomatic and consular service;
2) the administrative and technical personnel of diplomatic missions and consular offices of foreign states and their family members residing with them, in case they are not citizens of the Republic of Uzbekistan or do not reside in the Republic of Uzbekistan permanently, with respect to all income, except for those derived from sources in the Republic of Uzbekistan which are not connected with the diplomatic and consular service;
3) the service personnel of diplomatic missions, consular offices of foreign states, in case they are not citizens of the Republic of Uzbekistan or do not reside in the Republic of Uzbekistan permanently, with respect to all income connected with their service;
4) house workers of employees of diplomatic missions and consular offices of foreign states, in case they are not citizens of the Republic of Uzbekistan or do not reside in the Republic of Uzbekistan permanently, with respect to all income connected with their service;
5) officials of international non-governmental organizations with respect to the income received by them in these organizations, in case they are not citizens of the Republic of Uzbekistan.
Article 380. Reduction in the Aggregate Income of Certain Categories of Taxpayers
The following taxpayers shall be tax exempt in part (with respect to income in the amount of 1.41 times the minimum wage for each month in which these incomes are received):
1) awarded the title of "Uzbekiston Kakhramoni" (Hero of Uzbekistan), 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 war veterans, 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 the war or a certificate from the defense department or other authorized body, and to other disabled people (participants) on the basis of a certificate of a disabled person (participant) for the right to benefits;
3) persons disabled since childhood, as well as disabled persons of I and II groups. This benefit shall be granted on the basis of a pension certificate or a certificate of a medical and labor expert commission;
4) parents and widows (widowers) of military personnel and employees of the internal affairs bodies who perished as a result of wounds, concussion or injury received during the defense of the former USSR, the constitutional order of the Republic of Uzbekistan or while performing other duties of military service or service in the internal affairs bodies, or due to illness connected with being at the front. The privilege 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 perished employee of the internal affairs bodies", or there is a corresponding entry certified by the signature of the head and the seal of organization which issued the pension certificate. In case these persons are not retired, the benefit shall be granted to them on the basis of a certificate of the death of a serviceman or an employee of the internal affairs bodies 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 of the Republic of Uzbekistan or the Ministry of Internal Affairs of the Republic of Uzbekistan, the Ministry of Emergency Situations of the Republic of Uzbekistan, 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 agencies which provide for military service. Widows (widowers) of military personnel or employees of internal affairs bodies who perished during the defense of the former USSR, the constitutional order of the Republic of Uzbekistan, or while performing other duties of military service or service in the internal affairs bodies, or due to an illness connected with being at the front, shall be eligible for this benefit only if they did not remarry;
5) single mothers with two or more children under the age of sixteen. The benefit shall be granted on the basis of a certificate issued by the civil status acts registration authorities for each child separately;
6) widows and widowers who have two or more children under the age of sixteen and do not receive a survivor's pension (on loss of breadwinner). The benefit shall be granted upon presentation of the death certificate of the husband (wife), birth certificates of children, certificate of the absence of a new marriage and upon presentation of a certificate from the district (city) department of the Off-budget Pension Fund under the Ministry of Finance of the Republic of Uzbekistan about the absence of a pension with respect to loss of the breadwinner;
7) one of the parents who raise a person with a disability since childhood, residing with him, in connection with the requirements for constant care. The benefit shall be granted on the basis of a pension certificate or a medical certificate from a healthcare institution which confirms the need for constant care.
The tax benefits provided for in this Article shall be applied upon submission of the corresponding documents.
Where the right to a tax benefit arises during a calendar year, the tax benefit shall be applied from the moment the right to a tax benefit arises.
Where a taxpayer is entitled to a tax benefit on several grounds provided for by this Article, only one tax benefit shall be granted at the choice of that person.
The tax benefit shall be applied for the place of the main work (service, study) of the taxpayer, and in case the main place of work is absent — by the tax authorities for the place of residence upon calculation of the tax on the basis of the declaration of aggregate annual income. Where the taxpayer have lost the right to a tax benefit, he must notify the legal entity which withholds tax from him within fifteen days from the date of loss.
The tax benefits listed in the first part of this Article shall equally apply to the taxpayer's income received in the form of interest and dividends, as well as to income received from the lease of property. In case interest and dividends are accrued at the place of the main job, the tax benefit shall be applied at the place of the main job. In case interest and dividends are accrued not at the place of the main job, the tax benefit shall be applied upon calculation of the tax on the basis of the declaration of aggregate annual income by the tax authorities for the place of residence of the taxpayer. A similar procedure shall apply to income received from lease of property.
Chapter 55. Tax Rates. Tax Period
Article 381. Tax Rates for Physical Persons who are Residents of the Republic of Uzbekistan
Income of an physical person who is a resident of the Republic of Uzbekistan shall be taxed at a tax rate of 12 percent, unless otherwise provided by part two of this Article.
Income in the form of dividends and interest shall be taxed at a tax rate of 5 percent.
Article 382. Tax Rates for Physical Persons who are Non-Residents of The Republic of Uzbekistan
Income of an physical person who is a non-resident of the Republic of Uzbekistan, received from sources in the Republic of Uzbekistan, shall be taxed at the following tax rates: