Uzbekistan legal and accounting and tax considerations in 2023
- Corporate tax Uzbekistan is levied at 15%. However small entities suffer only 6% unified tax, which includes: i) profit tax ii) VAT and iii) social and property contributions;
- The standard Value Added Tax (VAT) in Uzbekistan is 12%. Exports of certain goods are VAT exempt;
- Losses may be carried forward for up to five years, but they cannot exceed 50% of the annual taxable income;
- Dividends and interest, paid to nonresidents suffer 10% withholding tax, unless the rate is reduced under double taxation treaty (DTA). Uzbekistan has signed 50 DTA’s;
- Tax returns must be filed to the Tax Authority within three months from the end of the tax year;
- An individual is considered tax resident if he is present in Uzbekistan for at least 183 days per year;
- It is usually possible to obtain audit exemption;
- Late tax payments suffer daily penalty of 1%, with up to 10% of the amount due;
- Personal income tax is progressive, with rates between 8% and 22%. However, capital gains from sale of private property are tax-exempt.
- Finally, Healy Consultants will assist the Client with: i) Documenting and implementing accounting procedures ii) Implementing financial accounting software iii) Preparing financial accounting records iv) Preparing forecasts, budgets, sensitivity analysis and other corporate services;
- It is important our Clients’ are aware of their personal and corporate tax obligations in their country of residence and domicile; and they will fulfill those obligations annually. Let us know if you need Healy Consultants’ help to clarify your annual reporting obligations.
Legal and compliance
Healy Consultants Compliance Department guides our Client through legal and tax obligations.
- The minimum amount of paid up capital to be invested in a foreign-owned company is US$370. 30% of the share capital must be deposited in a local bank before company incorporation. There must be at least one shareholder and one director;
- All business entities must submit annual audited financial statements by March 31st of each year;
- A company secretary is not required when setting up a company in Uzbekistan; however, we recommend one be appointed to ensure compliance with the corporation act;
- The process of deregistering a company is dictated by the Government. This process will take a minimum of 6 months. Healy Consultants fee to project manage company de-registration is US$1450. During this 6 months period it is mandatory to maintain a resident company secretary and a legal registered office.
- Unfortunately, only resident director(s) of Uzbek companies can be appointed as bank signatories of an Uzbekistan corporate bank account. Consequently, all foreign bank signatories are required to secure a work permit in Uzbekistan. In addition, the bank signatory has to visit the bank in order to open the account.