No increase in VAT and profit tax in Uzbekistan for four more years

It has been determined that the value-added tax and profit tax rates in Uzbekistan will not be increased until January 1, 2028. This was stated in the presidential decree “On further measures to ensure equal conditions for entrepreneurs and a fair competitive environment” adopted on December 27 of this year.

According to it, from January 1, 2025, to January 1, 2028, the profit tax rates for entrepreneurs engaged in production activities in the sewing and knitting, footwear and leather, and perfumery industries and meeting the established conditions and meeting the established conditions, and the personal income tax rates for their employees were set at 1 percent.

From April 1, 2025, legal entities engaged in the sale of pharmaceutical products or the provision of medical services, regardless of their income, will be recognized as VAT payers.

A center will be established to assist entrepreneurs in entering foreign financial markets. The center will provide entrepreneurs with consulting services on attracting funds from international financial institutions, foreign financial organizations, and other credit organizations without state guarantees.

Additional funds in the amount of 100 million US dollars will be allocated to the Trade Development Company JSC (the Company) for loans to replenish working capital in 2025. From January 1, 2025, revolving loans in national currency will be allocated from the Company's resources for projects on calibration and packaging of agricultural products in special containers, as well as for replenishing working capital.

From January 1, 2025:

• A fee for each kilogram of cotton yarn exported from the customs border will be set at 2 percent of its export price, but not more than 0.05 US dollars;
• A fee for each kilogram of knitted fabric exported from the customs border will be set at 1 percent of its export price.

We would like to remind you that earlier it was announced that from January 1, 2025, VAT benefits for public transport will be canceled. That is, VAT benefits for goods and services sold by legal entities that are the sole participants in the turnover of passenger transportation services at uniform tariffs and public associations of persons with disabilities will be canceled.