Uzbekistan: Spotlight On Uzbekistan: Kinstellar's Regular Look At The Uzbek Market - March 2019

Last Updated: 8 April 2019
Article by Joel Benjamin and Muborak Kambarova

March 2019 – Kinstellar's regular look at the Uzbek market

The tax reform came into force from 1 January 2019. There have been significant changes to the tax system in Uzbekistan.

1. Unified Tax Payment

Before recent reforms, the criteria for payment of a unified tax payment was the number of employees and the carrying out of particular forms of activity. The amount of annual turnover (receipts) was not taken into account. However, in order to reduce regulatory work, it was decided to retain the existing tax name as unified tax payment instead of the turnover (receipts) tax. Since 1 January 2019, the unified tax payment is paid only by legal entities with annual turnover not exceeding UZS 1 billion

2. Corporate Profits Tax

Corporate Profits Tax reduced in the following ways:

  • for commercial banks – from 22% to 20%;
  • for other legal entities – from 14% to 12%.

3. Other Changes

The contributions required to be made by individuals to state pension, road and educational/medical development funds have been eliminated. This step will bring the tax system closer to the international tax standards. Moreover, it will ease the tax burden, which will allow to send free funds for investment, development of production and compensation of employees.

Personal income tax is paid at a fixed rate of 12% instead of 22.5% before. The tax rate on dividends and interest has been reduced from 10% to 5%. For non-residents, the tax rate on dividends and interest is retained at a rate of 10%.

Insurance contributions to public pension funds are canceled. Enterprises with an annual turnover of more than UZS 1 billion will pay value-added tax. And a temporary simplified VAT breakdown procedure is going to be introduced for enterprises with a turnover of up to UZS 3 billion.

Presidential Decree "The Concept for Improving Uzbekistan`s Taxation Policy" No. UP-5468 of 29 June 2018.

Creation of the Ministry of Transport

According to the Presidential Decree, the Agency for Automobiles was created under the Ministry of Transport of the Republic of Uzbekistan.

The Ministry is responsible for the development and implementation of unified state policy in the field of development of the road, rail, air, river transport, metro, as well as road facilities and issuance of licenses, permits and certifications. Therefore, six state organisations were transferred to the Ministry of Transport.

  • The State Committee for Highways – now the Committee for Highways under the Ministry of Transport;
  • The State Inspectorate for Flight Safety Supervision — now the Civil Aviation Agency under the Ministry of Transport;
  • The State Inspectorate for Safety Supervision of Railway Transportation – now the Inspectorate for Safety Supervision of Railway Transportation under the Ministry of Transport;
  • The State Inspectorate for Quality Control of Road Construction Works under the Cabinet of Ministers –  now the Inspectorate for Quality Control of Road Construction Works at the Ministry of Transport;
  • The Uzbek Ship Registry of the Ministry of Emergency Situations; and
  • The Center "Uzbek air navigation" under the Cabinet of Ministers.

In addition, the Centre for the study of transport and logistics development will be created under the Ministry of Transport.

Presidential Decree "On Measures to Fundamentally Improve the System of Public Administration in the Field of Transport" No. UP-5647 of 1 January 2019.

The State Competition Committee is divided into three state bodies

According to the Presidential Decree No. UP-5630, the State Committee for Assistance to Privatised Enterprises and Development of Competition ("the State Competition Committee") has been abolished.

Instead of the State Competition Committee, three separate state authorities have been created. These are the Antitrust Committee, State Assets Management Agency and Capital Market Development Agency.

Presidential Decree "On the Fundamental Improvement of the State Assets Management, Antitrust Regulation and Development of the Securities Market" No. UP-5630 of 14 January 2019.

Reorganization in the structure of NMMC

In accordance with the Resolution of the Cabinet of Ministers No. PKM-8, the Project Office State Enterprise "Навоийский ГМК" has been created. The primary goal of the State Enterprise "Навоийский ГМК" is to deal with the implementation of modern methods of corporate governance and organization of works on conversion into a joint stock company.

Resolution of the Cabinet of Ministers "On Measures of Increase the Efficiency of Activities of the State Enterprise "Navoi Mining and Metallurgical Combinat" No. PKM-8 of 9 January 2019.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions