No taxation plans for migrants, confirms Uzbek tax committee

On April 1, during a press conference at the Information and Mass Communications Agency, the Deputy Chairman of the Tax Committee, Mubin Mirzayev, stated:

"We are creating a system where no individual can reduce, alter, or evade taxes on their income. [...] This includes not only income earned in Uzbekistan but also income earned abroad. In cases of double taxation—if taxed in one country, and if the individual is an Uzbek resident—it must be paid in Uzbekistan. If they are a non-resident of Uzbekistan and have paid taxes abroad, we account for it. According to existing legislation, the taxation system for individuals will be fully optimized and implemented."

Mirzayev's comments sparked discussions on social media, among the public, and in the press, leading to the misconception that Uzbekistan would start taxing its migrants living abroad. This confusion stemmed from Mirzayev’s lack of clarity regarding the definitions of "resident" and "non-resident" and whom he referred to as "Uzbek citizens abroad." The Tax Committee later clarified the statements and announced that there are no plans to tax migrants.

Clarifications from the Tax Committee:

Tax Committee Press Secretary Dildora Hashimova told QALAMPIR.UZ that if an Uzbek citizen works abroad and is recognized as a tax non-resident (i.e., spends less than 183 days in Uzbekistan during the year), they will not pay taxes on income earned abroad upon returning to Uzbekistan. This is because such income is not sourced from Uzbekistan, and under Article 364 of the Tax Code, it is not subject to taxation.

"Uzbek citizenship does not automatically create tax obligations. The main criteria are whether the individual is a tax resident or non-resident.

If an Uzbek citizen works abroad but remains in Uzbekistan for more than 183 days within a consecutive 12-month period and retains tax residency status, they must pay taxes on income earned abroad. However, even then, if taxes have already been paid on that income abroad, they will not be taxed again in Uzbekistan, as per Articles 399 and 400 of the Tax Code.

Based on international agreements preventing double taxation, taxes paid abroad are credited in Uzbekistan, ensuring such income is not double-taxed here," Hashimova explained.