Uzbekistan Personal Income Tax Guide 2026

Overview — State Tax Committee

The State Tax Committee of Uzbekistan administers all tax collection including personal income tax, corporate tax, VAT, property tax, and social taxes. Tax residents are taxed on worldwide income; non-residents are taxed only on Uzbekistan-source income. Residency is determined by physical presence of 183 days or more in any 12-month period. Employees have tax withheld at source by employers under the payroll system. Self-employed individuals file annual returns directly. The currency is the Uzbek Som (UZS).

Flat IIT Rate — 12%

Uzbekistan introduced a flat personal income tax rate of 12% in 2018, replacing the previous progressive scale. The flat rate applies to all forms of employment income, business income, rental income, capital gains, and other income for resident individuals. A monthly minimum wage exemption applies — the first UZS 1,200,000 (approximate for 2026) of monthly income is exempt from IIT. Income above this threshold is taxed at the flat 12% rate. Employers deduct IIT at source under the payroll system and remit to the tax authorities monthly. The effective tax rate for most employees is approximately 10-11% due to the minimum wage exemption.

Dividend Income — 5% WHT

Dividends paid by Uzbek companies to resident individuals are subject to a final withholding tax of 5%. This is a final tax, meaning the dividend income is not included in the individual's IIT calculation. For non-residents, the dividend WHT rate is generally 10-15% depending on applicable double tax treaties. Dividends paid to Uzbek resident companies are included in corporate income and taxed at the CIT rate, with credit given for any WHT already applied. The 5% rate for individuals makes dividend income more tax-efficient than salary income.

Employer Payroll Obligations

Employers in Uzbekistan are responsible for withholding and remitting several taxes and contributions from employee salaries:

• IIT (12%) — withheld monthly from gross salary above the minimum wage exemption
• Pension contribution (6.5%) — employee's mandatory pension contribution
• Social tax (12%) — employer's contribution calculated on total payroll

Employers must file monthly payroll tax returns and remit withheld amounts by the 10th of the following month. Annual reconciliation returns are filed by 15 February of the following year. Employers must issue annual income certificates to employees.

Self-Employed & Sole Proprietors

Self-employed individuals and sole proprietors are taxed at the same flat 12% IIT rate. They must register with the State Tax Committee and file quarterly estimated tax returns. The tax year is the calendar year, and annual returns are due by 1 April of the following year. Self-employed individuals can deduct allowable business expenses (rent, materials, salaries, utilities) from gross income to arrive at taxable profit. Simplified taxation regimes are available for micro-businesses with annual turnover below certain thresholds, including the turnover tax at reduced rates.

FAQs

Do I need to file an annual tax return if I am a salaried employee?

Generally, if all tax has been correctly withheld at source by your employer, you do not need to file an annual return. However, if you have additional income (rental, business, foreign income), you must file a declaration by 1 April.

Is there a minimum wage exemption in 2026?

Yes, the first approximately UZS 1,200,000 per month is exempt from IIT. The exact amount is adjusted periodically by government decree based on the minimum wage level.

Can deductions be claimed against personal income?

Limited deductions are available, including charitable contributions to registered organisations (up to 10% of income) and mortgage interest on housing loans. Medical and education expenses may also be deductible within prescribed limits.

Disclaimer

This guide provides general information about Uzbek personal income tax for the 2026 tax year. Tax laws, rates, and minimum wage levels 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.