Tax Incentives for Companies in Uzbekistan: Types and How to Apply Them

What a tax incentive is and who grants it

Incentives are granted by the Tax Code and cannot be individual. A deferral or instalment plan for paying tax is not an incentive.

Presidential decisions may grant incentives only within narrow limits. For most taxes — only a rate reduction of no more than 50% for no more than three years; this mechanism does not apply to VAT, excise tax, subsoil or water taxes. For profit tax, presidential decisions may grant only the right to accelerated depreciation of fixed assets for no more than three years (Article 75(6), introduced by Law No. ZRU-1108 from 1 January 2026).

Incentives written directly into the Tax Code

Most incentives are found in the chapters on specific taxes. The ones legal entities meet most often are listed below.

• 0% profit tax rate — for agricultural producers on profit from their own produce, taxpayers in the social sphere, enterprises of associations of persons with disabilities, and profit from high-technology products (Article 337);
• a 50% reduction of the profit tax rate — for taxpayers whose total income first exceeded UZS 10 billion after 1 September 2022, for the current and the following tax period, provided income in those periods does not exceed UZS 100 billion (Article 337(7));
• a 1 percentage point reduction of the profit tax rate for each percent of employees with disabilities above 3% of average headcount (Article 337);
• an investment deduction of 20% or 10% of investment in new equipment, modernisation and construction (Article 308) — see the page on tax depreciation;
• a reduction of the property tax base by the value of education, healthcare, culture and sports facilities, agricultural property, new oil and gas wells (for two years) and areas occupied by high-technology equipment (for three years) — Article 414;
• VAT exemptions for certain supplies and imports — Articles 243–246.

Companies with direct private foreign investment

Legal entities with direct private foreign investment operating in sectors on the approved list are exempt from land tax and property tax, depending on the amount invested, for a period set by presidential decision (Article 471). The incentive applies only if all conditions of Article 472 are met at the same time:

• location in territories defined by legislation;
• investment without a guarantee of the Republic of Uzbekistan;
• foreign participants' share in the charter capital of at least 33%, or at least 15% for joint-stock companies;
• contribution in freely convertible currency or new modern technological equipment;
• reinvestment of at least 50% of the income obtained from the incentives into developing production.
• if a condition is breached, taxes for the period of non-compliance are paid in the general manner with penalty interest.

Special economic zone participants

SEZ participants are exempt from property tax and land tax, depending on the amount invested, for a period set by presidential decision. The profit tax exemption is 3 years for investment of USD 3–5 million, 5 years for USD 5–15 million and 10 years for USD 15 million or more (Article 473).

For taxpayers that obtained SEZ participant status from 1 April 2026, the profit tax incentive is replaced by the right to accelerated depreciation of fixed assets for the same period. All SEZ incentives apply only to the activities listed in the investment agreement with the zone directorate. The profit tax incentive period runs from the date the production facility is accepted into operation; the others run from the date of the participant certificate. If the status is revoked, the incentives stop from the 1st day of the month of revocation (Article 474).

New conditions for property tax and land tax incentives

From 2026, property tax and land tax incentives for legal entities apply only if two conditions are met together for the previous year (Article 75(14)):

• total income from sales exceeds the amount of the incentive used for these taxes;
• each employee is paid a monthly salary of at least two minimum wages, and average headcount is at least three people;
• the conditions do not apply, in particular, to legal entities with direct private foreign investment, production sharing agreement participants, non-profit and budget organisations, and SEZ participants with status obtained before 1 January 2026;
• even with a full exemption under Article 483 or a decision of the President or the Cabinet of Ministers, these taxes are paid at 1% of the assessed amount (Article 75(11)).

How to apply an incentive and keep it

An incentive may be used from the moment its legal basis arises for its whole term; a taxpayer may also waive it or suspend it for one or more periods — except for VAT-exempt supplies.

If an incentive is granted on condition that the tax saved is spent on specific purposes, any misuse is recovered to the budget with penalty interest. Unused funds may be spent on those purposes within a year after the incentive ends; otherwise they are transferred to the budget. The tax authorities record each incentive in their information systems under a special identification code — so the incentive must be reported with the correct code, and documents confirming the conditions kept for the whole audit period.