Uzbekistan freezes VAT and corporate tax rates until 2028

A presidential decree titled "On Further Measures to Ensure Equal Conditions and a Fair Competitive Environment for Entrepreneurs" has been issued, ensuring that value-added tax (VAT) and corporate income tax rates will remain unchanged until January 1, 2028.

From January 1, 2025, until January 1, 2028, entrepreneurs engaged in the production of goods in the sewing-knitting, footwear, and leather goods industries, provided they meet the prescribed conditions, will benefit from a reduced 1% corporate income tax rate and a 1% personal income tax rate for their employees.

Beginning April 1, 2025, legal entities involved in the trade of pharmaceutical products or the provision of medical services will be recognized as VAT payers, regardless of their income levels.

To further support entrepreneurs, a center will be established to assist them in accessing international financial markets. This center will offer consulting services to help entrepreneurs attract funds from international financial institutions, foreign financial organizations, and other credit institutions without requiring state guarantees.

Additionally, in 2025, an extra $100 million will be allocated to "Trade Development Company" JSC to provide loans for replenishing working capital. Revolving loans in the national currency will also be made available for projects involving the calibration and specialized packaging of agricultural products, as well as for replenishing working capital.

Starting January 1, 2025:

- A fee of 2% of the export price (capped at $0.05 per kilogram) will be introduced for every kilogram of cotton yarn exported across customs borders.

- A fee of 1% of the export price will be introduced for every kilogram of knitted fabric exported across customs borders.

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