Uzbekistan Investment Income Guide 2026

Overview — Investment Income Taxation

Uzbekistan taxes investment income through withholding taxes for some passive income streams and through inclusion in ordinary income for others. The withholding tax on dividends is a final tax for resident individuals. For companies, investment income is included in taxable profit and taxed at 15% CIT. For non-residents, withholding tax rates may be reduced under applicable double tax treaties. The State Tax Committee administers all investment income taxation. The Uzbek investment landscape includes government securities, bank deposits, listed shares, and mutual funds.

Dividends — 5% WHT (Final for Individuals)

Dividends paid by Uzbek-resident companies are subject to withholding tax at 5% for resident individual shareholders. This is a final tax — the dividend income is not included in the individual's IIT computation. For resident corporate shareholders, dividends are included in taxable income and taxed at the CIT rate of 15%, with credit for any WHT deducted. For non-residents, the dividend WHT rate is generally 10-15% (reduced under many DTTs to 5-10%). Dividends paid out of profits that have already been taxed at the corporate level are eligible for participation exemption or reduced rates in certain circumstances.

Interest Income

Interest income is generally included in ordinary income and taxed at the standard rates (12% IIT or 15% CIT). However, certain exemptions and reduced rates apply:

• Bank deposit interest — exempt from IIT for individuals (tax-free up to a threshold linked to the central bank rate)
• Government securities — interest on Uzbek government bonds and treasury bills is generally exempt from IIT for individuals
• Corporate bonds — interest is taxable at standard rates (12% for individuals, 15% for companies)
• Foreign currency deposits — interest may be subject to IIT if it exceeds the threshold

The exemption for bank deposit interest is designed to encourage savings in the banking system and is subject to annual review.

Capital Gains — Treated as Ordinary Income

As detailed in the capital gains guide, gains from the disposal of investments (shares, bonds, property) are treated as ordinary income in Uzbekistan. Individuals pay 12% IIT on net gains, companies pay 15% CIT. Gains from the sale of GSE-listed shares may be exempt if held for more than 3 years. Losses on investment disposals may be offset against gains in the same year. The no-separate-CGT system simplifies compliance but means that investment gains are taxed at the same rate as salary income.

Mutual Funds & Collective Investments

Mutual funds and collective investment schemes in Uzbekistan are regulated by the Securities Market Agency. Income distributed by mutual funds to individual investors is generally treated as dividend income, subject to 5% WHT (final tax). Capital gains from the sale of fund units are taxed at 12% IIT. The fund itself is generally tax-transparent for income tax purposes. Investment in mutual funds has grown significantly as Uzbekistan develops its capital markets.

FAQs

Do I need to report dividend income on my tax return?

If you are a resident individual, the 5% WHT on dividends is final, so no further reporting is needed. Non-residents and corporate shareholders should report and claim treaty relief where applicable.

Are foreign investment income and capital gains taxable in Uzbekistan?

Yes, tax residents are taxed on worldwide investment income. Foreign dividends, interest, and capital gains should be declared in the annual tax return. Foreign tax credits may be available under DTTs.

Is interest on Uzbek Eurobonds taxable?

Interest on sovereign Eurobonds issued by Uzbekistan is generally exempt from withholding tax for non-resident holders. Resident holders should include interest in their taxable income.

Disclaimer

This guide provides general information about Uzbek investment income taxation for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Uzbek tax advisor or the State Tax Committee for advice specific to your situation. InvestmentKit does not provide tax advice.