The President signed Law No. ZRU-1108: Key Tax Changes Effective from January 1, 2026
2025-12-25 09:00
On December 25, 2025, the President of the Republic of Uzbekistan signed Law No. ZRU-1108 “On Amendments and Additions to Certain Legislative Acts of the Republic of Uzbekistan in Connection with the Adoption of the Main Directions of Tax and Budget Policy for 2026.” The Law entered into force on January 1, 2026, and implements the instructions of the Head of State following the open dialogue with entrepreneurs.
The document is aimed at simplifying tax administration, supporting small businesses, strengthening VAT control, and adjusting tax incentives. The main tax rates remain unchanged: VAT — 12%, corporate income tax — 15%, social tax — 12%.
Key Innovations for Businesses
1. New Regime for Individual Entrepreneurs and Self-Employed Persons
The fixed personal income tax for individual entrepreneurs has been abolished, as well as the exemption of self-employed persons from turnover tax for income of up to UZS 100 million.
A unified 1% turnover tax rate has been introduced for annual income of up to UZS 1 billion (for individual entrepreneurs and self-employed persons).
Up to UZS 1 billion — voluntary choice: 1% turnover tax or the general tax regime (VAT + corporate income tax).
Exceeding UZS 1 billion → mandatory transition to the general regime from the date the threshold is exceeded.
Temporary corporate income tax incentives are provided for those transitioning to the general regime for the first time (including a one-year exemption in certain cases).
2. VAT: New Rules and Abolition of Incentives
Zero VAT rate for the sale of self-produced agricultural products (except cotton and grain).
Zero VAT rate for exports via electronic trading platforms (marketplaces) — automatic confirmation through data exchange.
VAT exemption for jewelry and semi-finished products made of precious metals and stones has been abolished.
The procedure for VAT taxation of operations related to the distribution of fines and penalties has been clarified.
3. Property Tax
Minimum tax base values for buildings and structures have been increased (in Tashkent — from UZS 3.3 million to UZS 3.53 million per 1 m², and similarly in other regions).
The reduced rate has been increased from 0.65% to 0.7% in certain cases.
4. Additional Simplifications
Termination of administrative offense cases for late reporting of up to 5 working days (provided reports for the previous 3 months were submitted on time).
Possibility to pay financial sanctions in installments following on-site tax inspections.
The threshold for advance corporate income tax payments has been increased.
Simplified voluntary liquidation based on the opinion of tax consultants or auditors.
Reduced rates for e-commerce entities have been abolished — base rates now apply (corporate income tax 15%, turnover tax 4%).
These changes create a more transparent and predictable tax environment, stimulate the growth of small and medium-sized businesses, and support a gradual transition to the general tax regime.