Uzbekistan toughens penalties for tax evasion, with jail terms of up to 7 years

The law introduces broad amendments to both the Criminal Code and the Code of Administrative Responsibility. These changes are aimed at curbing tax – related offenses, reducing the shadow economy, and ensuring stable revenues for the state budget.

Increased administrative fines

Under the revised administrative rules, the financial penalties for deliberately concealing or understating income have been increased. For standard violations, individuals now face fines ranging from 15 to 25 times the Base Calculating Amount (BCA), equivalent to UZS 6.18 million to UZS 10.3 million. Officials face higher fines of 25–50 times the BCA (UZS 10.3 million to UZS 20.6 million).

If these violations are committed on a larger scale, the penalties rise accordingly:

• 30–50 times the BCA for individuals.
• 50–100 times the BCA for officials.

Failure to submit income declarations or providing false information is now punishable by fines of 5–10 times the BCA. The law defines a "large amount" of tax evasion as any sum between 100 and 600 times the BCA, currently equivalent to UZS 41.2 million to UZS 247.2 million.

Criminal liability and prison sentences

The amendments to the Criminal Code stipulate that deliberate tax evasion on a large scale – following previous administrative penalties – can lead to severe consequences. Offenders may face corrective labor for up to 2 years, restriction of liberty for 1–3 years, or imprisonment for the same period.

For repeat offenses or those involving even larger sums, the penalties intensify to include:

• Fines of 200–300 times the BCA.
• Corrective labor for 2–3 years.
• Prison terms of 3–5 years.

In cases categorized as involving an "especially large amount," offenders may face imprisonment for 5–7 years. The legislation defines a "very large amount" as 600–1,000 times the BCA (UZS 247.2 million to UZS 412 million), while an "especially large amount" is any sum exceeding 1,000 times the BCA.

Exemptions for full repayment

Despite the toughened stance, the law provides a pathway for offenders to avoid criminal prosecution. Individuals may be exempt from criminal liability if they fully repay the unpaid taxes and fees arising from the concealed income.

First-time offenders, in particular, can avoid prosecution if they compensate for all damages, including all associated penalties and financial sanctions, before the conclusion of the investigation and prior to the start of court deliberations. This provision is designed to encourage the voluntary recovery of funds to the national treasury.