Uzbekistan Introduces Moratorium on VAT and Profit Tax Increases and Other Measures

Uzbekistan has published Presidential Decree No. UP-229 of 27 December 2024 on measures to ensure equal conditions for entrepreneurs and a fair competitive environment. Some of the main measures of the Decree include:

• VAT and profit (corporate) tax rates will not be increased in the period until 1 January 2028;
• Business entities engaged in production activities in the areas of sewing and knitwear, footwear, and leather goods are provided a 1% profit tax rate from 1 January 2025 to 1 January 2028 (31 December 2027), along with a 1% personal income tax rate for their employees, if the following conditions are met:
  • at least 15% of the total number of employees are members of families included in the Unified Register of Social Protection or the Register of Poor Families;
  • the monthly salary of each employee is at least twice the minimum wage; and
  • in the tax period, income from the sale of sewing and knitwear, footwear, or leather goods amounts to at least 90% of the total income from the sale of goods (services); and
• From 1 April 2025, legal entities engaged in the sale of pharmaceutical products or providing medical services will be recognized as payers of VAT regardless of the income.

Source Orbitax

---

---