Water Use Tax in Uzbekistan: Payers, Base and Rates

Who pays

Organisations supplying water to settlements pay tax only on water used for their own needs. Being on turnover tax does not exempt a business from water tax: Article 448 expressly sets out the advance-payment schedule for turnover tax payers.

• legal entities of the Republic of Uzbekistan;
• non-residents operating in Uzbekistan through a permanent establishment;
• individual entrepreneurs (IE) using water for business, and individuals owning non-residential property used for business or to earn income;
• dehkan farms and individuals owning agricultural land (Article 441).

Taxable object and exemptions

The taxable object is water taken from surface and underground sources (Article 442). Exempt items include:

• water used by non-profit organisations in their non-commercial activity;
• mineral groundwater used by healthcare institutions for treatment (except water sold);
• water driving hydropower turbines and water returned by thermal power plants;
• water used to flush saline farmland within the approved norm;
• water taken from collector and drainage networks.

Tax base: determining the volume

The base is the volume of water used (Article 443). It is measured by water meters recorded in primary accounting documents; without meters, it is based on withdrawal limits, technological and sanitary consumption norms, irrigation norms or other reliable methods (Article 444).

Surface and groundwater volumes are recorded separately. If water comes from the mains, the base is also split by source: the supplier reports the ratio to the tax authorities by 15 January, and they pass it on to taxpayers within three days.

Useful rules in Article 444: when part of a building is leased out, the base is determined by the landlord who has the contract with the water supplier; differences found when reconciling with the supplier are reflected in the period of reconciliation; water used in repair and construction work on a client's premises is taxed to the client, while on a new construction site the construction company pays. Beverage producers calculate the base on water used in production and for other purposes.

Rates for 2026

Rates are set in UZS per cubic metre within the limit (Article 445, as amended by ZRU-1108):

• businesses in all sectors, IEs and individuals with non-residential business property — UZS 749 (surface sources) and UZS 910 (underground);
• power plants and utilities — UZS 118 and 144;
• irrigation of farmland and fish farming — UZS 107, with reducing coefficients of 0.5 or 0.7 for water-saving technology and metering and an increasing coefficient of 1.1 without them;
• vehicle washing — UZS 16,050;
• production of soft drinks and alcoholic products other than beer and wine — UZS 40,660.

Illustrative calculation

A company used 2,000 cubic metres of mains water in a year. The supplier reported a 60% surface and 40% groundwater split, so the base is 1,200 and 800 cubic metres. Tax: 1,200 × 749 = UZS 898,800 plus 800 × 910 = UZS 728,000, a total of UZS 1,626,800 — assuming the limit was not exceeded and the local council set no coefficient. If part of the water came from the company's own unmetered well, that volume would be taxed at the fivefold rate.

When the rate is multiplied by five

District and city councils of people's deputies may apply reducing coefficients down to 0.7 or increasing coefficients up to 1.5 — except for the rates for power plants, utilities, agriculture and large taxpayers (Article 445). Check the final rate against your local council's decision.

• withdrawal above the set limits — on the excess;
• use of water resources without permits;
• use of surface water by vehicle-washing businesses;
• withdrawal of groundwater without meters (this does not apply to individuals taking up to 5 cubic metres a day for personal needs).

Advances, filing and payment

• the tax period is the calendar year (Article 446);
• a statement of the expected tax for the current year is filed by 20 January, or within thirty days of state registration for new companies (Article 448);
• advances: legal entities whose annual tax exceeds 200 times the BCV (other than turnover tax payers) pay monthly by the 20th, 1/12 each; other legal entities, turnover tax payers and IEs pay quarterly by the 20th of the third month of the quarter, 1/4 each;
• if advances are understated by more than 10% against the tax in the return, the tax authority recalculates them on the actual amount and charges late-payment interest;
• the annual return is filed where water is used: legal entities (except agricultural companies) by 1 March of the following year; non-residents with a permanent establishment and IEs by 20 January; agricultural companies by 15 December of the current year (Article 447);
• the final payment is due no later than the filing deadline.