Uzbekistan to streamline tax administration with unified payment system

The announcement follows a recent working visit to Russia by a delegation from Uzbekistan’s Tax Committee. During the visit, officials met with the Federal Tax Service of the Russian Federation to study the practical application and administration of their unified tax account model.

The proposed system aims to revolutionize how businesses and individuals interact with the state budget. By merging various taxes and fees into one account, the UTA system simplifies calculations and oversight. For taxpayers, this translates to a single payment transaction using unified details for all tax types, alongside standardized deadlines for filing reports.

According to the Tax Committee, the implementation of the UTA is expected to provide several key benefits:

• Convenience – Simplifying the payment process and making settlements with the budget more user-friendly.
• Error prevention – Reducing the likelihood of incorrect payments and preventing the accumulation of unnecessary late payment penalties.
• Balanced accounting – Eliminating instances where a taxpayer simultaneously holds an overpayment in one tax category and a debt in another.
• Automation – Ensuring the automatic credit of funds toward tax liabilities, thereby removing redundant bureaucratic procedures.

 The Tax Committee emphasized that this international exchange of experience is vital for adopting best practices. The integration of such a system is viewed as a significant step in the ongoing modernization of Uzbekistan’s fiscal framework, aiming for a more transparent and efficient tax environment.