Accounting Services for Individual Entrepreneurs: Taxes, Reporting and What the Service Covers

Which tax regime applies to an IE in 2026

The regime determines almost the entire workload: what to calculate, which returns to file and how often. The rules for IEs changed significantly from 1 January 2026 (Law ZRU-1108).

• Turnover tax — 1% of sales income (Art. 467(1)(5) of the Tax Code), if annual income does not exceed UZS 1 billion (Art. 461(1)(2)) and the activity is not among the exceptions in Art. 461(2) — for example, manufacturing and selling jewellery or retail sale of alcohol from a fixed outlet. Such income is not subject to personal income tax (PIT) (Art. 365(2)).
• VAT and profit tax — mandatory from the day income since the start of the year exceeds UZS 1 billion (Art. 462(7)), or voluntarily instead of turnover tax (Art. 462(3)).
• Import of goods: turnover tax does not apply to importers (Art. 461(2)(1)); the switch to VAT and profit tax takes effect from the date of the import contract or of importation, whichever comes first (Art. 462(13)).
• Renting out property is taxed not with turnover tax but with PIT at 12% (Art. 465(7), Art. 381(1)).
• Under the general rules an IE has no fixed income tax: income is subject either to turnover tax or to profit tax (Art. 461, 294). A fixed PIT of UZS 25,000 per quarter is provided by the Tax Code only for certain territories with a special tax regime (Art. 480¹–480²: Sokh district and a number of mahallas in Fergana region).

Taxes and returns of an IE on turnover tax

• Turnover tax: the reporting period is a month and the tax period is the calendar year (Art. 469). The return is due no later than the 15th of the following month, the annual return no later than 15 February, with payment on the same dates; the tax is calculated cumulatively from the start of the year (Art. 470).
• Social tax for the IE themselves — at least one BCV per month (Art. 408(1)(1)); from 1 September 2026 the BCV is UZS 440,000 (Presidential Decree UP-115). It is paid no later than the 15th of the month in which business was conducted; a new IE pays from the month following the month of registration (Art. 408).
• Invoices: an IE must issue them to buyers, normally in electronic form (e-invoices, ESF); the exception is a sale with a cash register receipt (Art. 47). Turnover tax does not exempt an IE from invoices or from purchase and sales ledgers (Art. 462).
• Employees: the IE withholds PIT from their salaries as a tax agent (Art. 385(8)) and reports monthly by the 15th and annually by 15 February (Art. 389). Social tax for each employee — at least one BCV per year — is also paid by the IE, no later than 31 December, at the BCV in force on the day of payment (Art. 408).
• Returns may be filed only as electronic documents (Art. 82).

What changes once income exceeds UZS 1 billion

The switch happens not from the new year but from the day income reaches the threshold (Art. 462(7)). From that date the entrepreneur is a VAT payer (Art. 237(1)(2)), and record-keeping comes close to that of a company:

• VAT at 12% (Art. 258): the tax period is a month; the return, with data from the purchase and sales registers, and payment are due no later than the 20th of the following month (Art. 259, 273).
• Profit tax: income and deductible expenses are recorded in the manner provided for legal entities, and IEs in trade also keep registers of income and goods transactions (Art. 359). The quarterly return is due by the 20th of the following month and the annual return by 1 March (Art. 362).
• Simplified base: an IE may calculate the tax base as 25% of total income and not keep expense records for tax purposes, except IEs in trade (Art. 360). The notice is filed together with the notice of switching to profit tax, and by existing payers no later than 25 January. At the general rate of 15% (Art. 337(1)(12)) this equals 3.75% of income.
• First-switch relief: those who switch from turnover tax to profit tax for the first time on or after 1 January 2026 are exempted by the Tax Code from profit tax (except on dividends and interest) for one tax period following the year of the switch; this does not apply to reorganised taxpayers (Art. 337(13)). Nor does the relief apply to payers of excise tax and subsoil use tax, on liquidation, or where splitting of income between two or more business entities is identified (Art. 337(9)).
• A new IE must also check the pro-rata threshold: if income in the year of registration exceeded "UZS 1 billion ÷ 365 × the number of days from registration to year end", the IE switches to VAT and profit tax from the beginning of the following year (Art. 462(8)).

What accounting support for an IE includes

• Reconciling receipts per bank statements, payment services and cash receipts with invoices
• Monitoring cumulative income and giving advance warning when it approaches UZS 1 billion
• Calculating turnover tax and checking the return that the tax authority pre-fills itself: differences must be corrected within five days, but no later than the filing deadline, otherwise the return is deemed filed as pre-filled (Art. 81)
• Monitoring payment of social tax by the 15th of the current month
• Issuing and accepting e-invoices, additional and corrected invoices when price or quantity changes (Art. 47)
• Employee payroll, PIT, social tax and HR documents
• Advice before decisions: switching to VAT, imports, hiring staff, renting out property
• Responding to notices from the tax authority and reconciling with the budget in the personal account

When an IE needs an accountant

With a single type of income and no employees or imports, an IE can keep records on their own. An accountant is needed if at least one of the following applies:

• income since the start of the year is approaching UZS 1 billion — the new regime will apply from the day the threshold is exceeded;
• imports are planned — turnover tax stops applying from the date of the contract or importation;
• the main customers are VAT-registered companies, and you need to work out whether a voluntary switch pays off: you can return to turnover tax no earlier than after 12 months and only if annual income has not exceeded UZS 1 billion (Art. 462(6));
• you have taken on employees — PIT, social tax and salary payment deadlines are added;
• you have rental income, which is taxed under different rules;
• a notice or demand has arrived from the tax authority.

How onboarding works

The length of each stage depends on the state of the documents, but the schedule is built around reporting dates: the first return has to go out before the nearest 15th.

• Diagnostics: regime, income since the start of the year, e-invoices issued, arrears and overpayments, employees and rental income.
• Contract: scope of work, deadlines for handing over documents, the procedure for signing returns. If a representative signs a return, a copy of the document confirming their authority is attached (Art. 82).
• Schedule: bank statements and documents are handed over monthly by an agreed date.
• Monthly cycle and year-end close: the annual turnover tax return is due no later than 15 February.

What the entrepreneur receives

• returns filed on time with confirmation of receipt
• a monthly summary: income since the start of the year, tax payable, headroom to UZS 1 billion
• correct e-invoices and a document archive by period
• written answers to questions with tax consequences

What the cost depends on

The cost is determined by the volume of work: the regime (turnover tax or VAT and profit tax), the number of transactions and invoices per month, employees, imports, rental income and the state of the records. If past periods need to be put in order, that is separate work with its own estimate.

Typical IE mistakes and what they cost

• VAT shown on an invoice without VAT payer status — a fine of 20% of the VAT amount shown, and that amount itself must be paid to the budget (Art. 225).
• Breach of the rules for recording income and expenses (ledgers) — a fine of UZS 500,000 (Art. 222).
• Missing the moment UZS 1 billion is exceeded — general-regime taxes will have to be recalculated from the date of excess (Art. 462(7)).
• Late payment — a penalty for each day of delay of 1/300 of the Central Bank refinancing rate (Art. 110).
• Late filing of tax returns entails administrative liability (Art. 220).