Turnover Tax in Uzbekistan in 2026: Who Pays, Rates and Monthly Returns by the 15th

As of November 2026, turnover tax in Uzbekistan is a special tax regime under which a business pays one tax on revenue instead of VAT and corporate profit tax: 4% for most sectors and 1% for individual entrepreneurs and self-employed persons (Tax Code, Art. 467). The text of the Tax Code lets legal entities with total annual income of up to UZS 1 billion, and individual entrepreneurs and self-employed persons with income from sales of up to UZS 1 billion, use the regime (Art. 461). However, Presidential Decree No. UP-100 of 26 May 2026 set the income ceiling for moving to the general regime at 12,000 base calculation values (BCV) from 1 June 2026 (UZS 5.28 billion at the BCV of UZS 440,000 in force from 1 September 2026), and as of 10 November 2026 the Code does not reflect this figure. The tax period is the calendar year and the reporting period is the month: returns and payment are due by the 15th of the following month, and the annual return by 15 February.

Key points

• The threshold: two facts. The Code (Art. 461) still says UZS 1 billion; Decree UP-100 sets 12,000 BCV from 1 June 2026. Until the Code is aligned, confirm with the tax office.
• Rate. 4% is the base rate; retail is 4%, 2% or 1% depending on location; individual entrepreneurs and self-employed persons pay 1% (Art. 467, as amended by Law ZRU-1108, from 1 January 2026).
• Returns are monthly, not quarterly. By the 15th of the following month; annual return by 15 February; payment no later than the filing deadline (Arts. 469 and 470).
• Closed to certain activities: imports, excisable goods, retail alcohol, pharmacies, medical services, jewellery, audit and other grounds in Art. 461, Part 2.
• Switching. A legal entity notifies the tax office no later than 10 working days before the start of the year it switches; the way back to VAT is from the first day of the month after the month of the VAT registration application (Art. 462).
• Individual entrepreneurs from 2026. The "fixed tax" no longer exists: they pay turnover tax at 1% or opt for VAT and profit tax; in some cases tax agents file for them (Arts. 465, 470).

What turnover tax is and what it replaces

Turnover tax (Chapter 66 of the Tax Code) is a regime for small business. The payer does not pay VAT or profit tax (Art. 462, Part 1): the tax is computed on total income determined under Art. 463, less the amounts in Art. 464 (for example, income from government bonds, dividends taxed at a tax agent, the value of returnable reusable packaging). There is no general deduction of expenses as under profit tax: income is what counts.

What the regime does not cancel: tax agent duties (for example, personal income tax on salaries, Art. 385, Part 8); the duty to issue invoices and keep the purchase and sales ledgers; and property tax, land tax and water resources tax.

Who may use it: the income threshold

What the Tax Code says

Article 461, Part 1 (as amended by Law ZRU-1108 of 25 December 2025, in force from 1 January 2026) recognises as payers: legal entities of Uzbekistan whose total income for the tax period does not exceed UZS 1 billion; and individual entrepreneurs and self-employed persons whose income from sales of goods (services) for the tax period does not exceed UZS 1 billion.

For legal entities the regime is optional: they may choose turnover tax instead of VAT and profit tax (Art. 462, Part 1). For individual entrepreneurs and self-employed persons it has been the default since 2026: they may choose VAT and profit tax instead (Art. 462, Part 3). Individual entrepreneurs above the threshold pay VAT (Art. 237, Part 1, para. 2).

What Decree UP-100 changed

Presidential Decree No. UP-100 of 26 May 2026 "On creating more favourable economic and administrative conditions for the development of small businesses" sets, in para. 2, the maximum income for moving to the general tax regime from 1 June 2026 at twelve thousand times the base calculation value. Para. 2 does not mention turnover tax in either the Uzbek or the Russian text; that this is the turnover tax threshold is stated expressly by the Tax Committee in its press release of 27 May 2026: the threshold rises from UZS 1 billion to 12 thousand BCV, and taxpayers whose income does not exceed 12 thousand BCV may apply turnover tax.

Conversion: from 1 September 2026 the BCV is UZS 440,000 (Decree UP-115), so 12,000 BCV is UZS 5,280,000,000; from 1 June to 31 August 2026 the BCV was UZS 412,000 (Decree UP-91), i.e. UZS 4,944,000,000. The Decree does not say which BCV to compare 2026 income against; settle this with the tax office in advance.

The same Decree introduced, from 1 June 2026 to 1 January 2030, an optional simplified VAT procedure for catering, trade and services (except enterprises with a state share of 50% or more and large taxpayers): 6% on all turnover, 0% profit tax with no return, and no credit for input VAT (paras. 5–7). This is a VAT regime, not turnover tax.

How to deal with it

The Decree takes effect immediately unless later dates are given (para. 13), and the Ministry of Economy and Finance, together with the Tax Committee, must within a month submit to the Cabinet of Ministers proposals for amendments to legislation arising from the Decree (para. 14). As of 10 November 2026 the Code has not been aligned: in Chapter 66 on lex.uz (Uzbek and Russian texts) the threshold is still "one billion sums". The Decree and the Code diverge, and we do not call either threshold settled: if your income is between UZS 1 billion and 12,000 BCV, ask the tax office for a written clarification. For 2027, rely on the rules in force in November 2026: the law on tax policy for 2027 has not yet been adopted.

Who may not use turnover tax

Turnover tax does not apply to the persons listed in Art. 461, Part 2, whatever their income. Under the text of the Code these are:

• importers of goods (legal entities, individual entrepreneurs, self-employed), item 1;
• producers of excisable goods (services) and mineral extractors, item 2;
• agricultural producers with 25 hectares or more of irrigated land, item 3;
• sellers of petrol, diesel fuel and gas, item 4; lotteries, item 5;
• the trustee of a simple partnership (except contracts for Islamic finance operations; Law ZRU-1126, from 29 June 2026), item 6;
• owners of vacant buildings and unfinished objects where a conclusion has been issued, item 7; construction financed from centralised sources, item 8;
• stationary retail of alcohol, including beer, item 9; markets and trade complexes, item 10;
• tax consultants and audit firms, items 11–12; non-profit organisations, item 13;
• trade in medicines and medical products and medical services, item 14; production and sale of jewellery, item 15.

If such an activity appears during the year, the payer moves to VAT and profit tax from the date given in Art. 462 (for example, from the date a licence is received).

Importers: two facts

• The Code: Art. 461, Part 2, item 1 excludes importers from turnover tax; Art. 462 moves them to VAT and profit tax from the date of the import contract or the import of goods, whichever comes first.
• Decree UP-100: para. 9(b)(ii) abolishes the rule that importers (legal entities, individual entrepreneurs and self-employed persons) are automatically treated as VAT payers. The Tax Committee wrote in its press release of 27 May 2026 that they may now apply turnover tax with income of up to 12 thousand BCV. But Art. 461, Part 2, item 1 and Art. 462 of the Code still name imports as a ground for exclusion as of 10 November 2026.

For an importer the conclusion is: if you import goods, do not move to turnover tax on the strength of a press release alone. Check exactly what the Code says on the date of your decision and get the tax office's answer in writing. What the Decree abolished is the mandatory recognition of importers as VAT payers; how that fits with Art. 461, Part 2, item 1 and Art. 462, Part 13 until the Code is amended is a question for a written answer from the tax office.

Rates

Rates under Art. 467, Part 1 (as amended by Law ZRU-1108, from 1 January 2026):

What matters:

• Turnover tax in a fixed sum (Art. 467, Parts 2–4) and its payment procedure (Art. 470¹) ceased to apply from 1 January 2026 (Law ZRU-1014 of 24 December 2024); benefits in the form of a reduced turnover tax rate do not apply to individual entrepreneurs and self-employed persons paying 1% (Law ZRU-1108, Art. 9).
• If a payer has several activities with different rates, it must keep separate accounts and pay at each activity's rate (Art. 468). Other income (including interest) is taxed at the rate of the activity that predominates.
• Tax is calculated on a cumulative basis from the start of the year, and the payer determines the amount itself (Art. 470, Parts 1–2).
• A relief for those who outgrow the regime: turnover tax payers that first switch to paying profit tax from 1 January 2026 are exempt from profit tax (except on dividends and interest income) for one tax period following the year of the switch (Art. 337, Part 13, as amended by ZRU-1108). It does not apply to reorganised payers, to payers of subsoil use tax and excise tax, on liquidation or where income is split between entities (Art. 337, Part 9). This is a profit tax relief, not a turnover tax relief.

Tax period, returns and payment

The tax period is the calendar year; the reporting period is the month (Art. 469). A month, not a quarter: the monthly reporting period has applied since 1 January 2022 (Law ZRU-741) and was not changed in 2026.

Examples: for October 2026 the deadline is 15 November, but it is a Sunday, so the deadline moves to Monday, 16 November (Art. 5, Part 8); for November it is 15 December 2026; for the 2026 annual return it is 15 February 2027.

Article 470 does not say directly whether a separate monthly return is filed for December or whether December goes only into the annual one. In a calendar it is safe to keep 15 January: it is earlier than either option.

Other taxes with special deadlines

For turnover tax payers, advance payments of legal entities' property tax, land tax and water resources tax are quarterly: by the 20th of the third month of each quarter, one quarter of the annual amount (Art. 417, Part 6; Art. 432, Part 1; Art. 448, Part 3). Such payers do not pay VAT (Art. 237, Part 3, para. 2). The whole calendar is on the deadlines calendar page (in Russian).

Tax agents for individual entrepreneurs and self-employed persons (ZRU-1108)

From 1 January 2026 Art. 465 has two cases in which someone other than the entrepreneur withholds the tax and files the return:

• Payment organisations. For income of individual entrepreneurs and self-employed persons from sales of goods (services) through digital platforms of payment organisations, up to one billion sums, the payment organisations are tax agents (Art. 465, Part 4).
• Legal entities that buy from self-employed persons. For income of self-employed persons from legal entities for sales of goods (services) of up to one billion sums in the tax period, those legal entities are tax agents; the tax is withheld at the source of payment on the basis of a notice from the tax authorities (Art. 465, Part 5).

For such individual entrepreneurs and self-employed persons the agents file returns for each entrepreneur separately, and the accrued and paid tax is recorded on the taxpayer's personal account at the tax office where the entrepreneur is registered (Art. 470, Part 4). The deadlines are the same: the 15th and 15 February (Art. 470, Part 3). In other cases the tax is paid and returns are filed under the general rules of the Code (Art. 465, Part 6).

The "up to one billion sums" limit in these parts of the Code has not been replaced with 12,000 BCV in the text as of 10 November 2026; we have not checked how agents apply it after UP-100.

Switching to turnover tax and back to VAT

Rules for legal entities (Art. 462):

"Ten days" means working days: under Art. 5, Part 7, a period in days is counted in working days unless calendar days are specified. For a switch on 1 January, the notice is filed in mid-December; work out the exact date from the production calendar, not calendar days. For 2027 these are the rules as of November 2026.

The threshold in these parts of the Code is still "one billion sums"; Decree UP-100 names 12,000 BCV, and the divergence has not been resolved (see above).

Individual entrepreneurs from 1 January 2026: what became of the "fixed tax"

• Fixed-amount personal income tax for individual entrepreneurs was abolished: from 1 January 2026 Law ZRU-1108 deleted Art. 383 (fixed rates) and Art. 392 (payment procedure). Turnover tax in a fixed sum (Art. 467, Parts 2–4; Art. 470¹) ceased to apply on the same date (Law ZRU-1014 of 24 December 2024).
• Law ZRU-1108 also removed para. 1 of Art. 385, Part 3 (the entrepreneur's right to pay personal income tax by declaration) and replaced the words "fixed-amount tax" in Art. 385, Part 5 with "turnover tax".
• Result: individual entrepreneurs pay turnover tax at 1% (Art. 467, item 5) or opt for VAT and profit tax (Art. 462, Part 3); above the threshold, VAT is mandatory (Art. 237).
• The right to pay personal income tax by declaration instead of turnover tax remains only for family members taking part in family entrepreneurship without forming a legal entity and for craftsmen who are members of the Hunarmand association. They choose the regime at registration or file a notice with the tax office at their place of residence no later than 25 January of the current year; if no notice is filed, this counts as consent to pay turnover tax (Art. 385, Parts 3–5).

What to do, step by step

• Check your activity against the list in Art. 461, Part 2.
• Count income cumulatively from 1 January and compare it with the threshold.
• A legal entity files its notice 10 working days before 1 January; a new legal entity does so at registration.
• Keep separate accounts by rate (Art. 468), invoices and the purchase and sales ledgers.
• Put the 15th of every month, 15 February and 20 March, June, September and December in your calendar.

Typical mistakes

• Filing quarterly. The most common one: the reporting period is a month, not a quarter (Art. 469, Part 2; monthly since 1 January 2022). Quarterly deadlines under turnover tax apply only to property, land and water tax advances.
• "Annual by 15 February, no monthly needed". You need both: monthly returns by the 15th and the annual one by 15 February; financial statements and profit tax are due by 1 March.
• Choosing between UZS 1 billion and 12,000 BCV by eye. From 1 June 2026 Decree UP-100 names 12,000 BCV (UZS 4.944 billion until 31 August 2026, UZS 5.28 billion from 1 September 2026), while the Code still names UZS 1 billion as of 10 November 2026. With income in between, you need a written answer from the tax office.
• Choosing turnover tax for a prohibited activity (imports, excisable goods, alcohol, pharmacies, jewellery): a ground for VAT under Art. 461, Part 2.
• Treating the "fixed tax" for individual entrepreneurs as still in force. It has not existed since 1 January 2026.

How Pactum helps

• We determine the regime: turnover tax or VAT with profit tax — calculating the threshold under both the Code and Decree UP-100, taking your activity and any imports into account.
• We prepare the switching notice and the payment schedule, and check separate accounting and rates by activity.
• We analyse the position of individual entrepreneurs, self-employed persons and tax agents.
• We support a tax audit if the regime is challenged.

Choosing a taxation system costs from UZS 1,000,000; support in tax audits from UZS 4,000,000. The decision is made by the tax authority and we do not promise a result. More — on the page about tax compliance in Uzbekistan or at a lawyer consultation: 60 minutes, UZS 300,000, credited toward the cost of the service. Phone +998 78 113 81 01, Telegram, info@pactum.uz, office: 21 Afrosiyob Street, Tashkent.

FAQ

What is the turnover tax rate in Uzbekistan in 2026?

The base rate is 4%. In retail: 4% in cities with a population of 100,000 or more, 2% in other settlements, 1% in hard-to-reach and mountainous areas; tobacco is 4% everywhere. Individual entrepreneurs and self-employed persons pay 1%. Procurement organisations pay 4% of turnover or 25% of gross income (Art. 467, Part 1).

Is turnover tax filed quarterly or every month?

Every month, no later than the 15th of the following month, plus the annual return by 15 February. The reporting period is the month (Art. 469, Part 2), since 1 January 2022.

Which income limit applies: UZS 1 billion or 12,000 BCV?

Under the text of the Tax Code, UZS 1 billion (Art. 461, Part 1). Decree UP-100 set the maximum income at 12,000 BCV from 1 June 2026 (UZS 4.944 billion until 31 August 2026, UZS 5.28 billion from 1 September 2026), but the Code does not reflect this figure as of 10 November 2026. Companies close to the limit need a written answer from the tax office.

Can an importer use turnover tax?

Under the Code, no: importers are excluded (Art. 461, Part 2, item 1). Decree UP-100 abolished mandatory VAT-payer status for importers, and the Tax Committee writes that they may apply turnover tax with income of up to 12 thousand BCV, but the exclusion is still in the Code.

What happened to individual entrepreneurs from 1 January 2026: where did the fixed tax go?

It was abolished from 1 January 2026: Law ZRU-1108 deleted Arts. 383 and 392 (fixed-amount personal income tax), Art. 470¹ (fixed-sum turnover tax) ceased to apply, and ZRU-1108 replaced "fixed-amount tax" in Art. 385 with "turnover tax". Individual entrepreneurs pay turnover tax at 1% or opt for VAT and profit tax. Only members of family entrepreneurship and Hunarmand craftsmen may pay personal income tax by declaration.

How many days ahead must I notify the tax office of a switch to turnover tax?

10 working days before the start of the tax period, that is, before 1 January (Art. 462, Part 2; Art. 5, Part 7). That is not 10 calendar days: in practice it means mid-December. A new legal entity chooses the regime at state registration.

Sources

• Tax Code of the Republic of Uzbekistan, Arts. 5, 237, 337, 383, 385, 392, 417, 432, 448, 461–470 (Uzbek text: lex.uz/docs/4674902); the Russian text is an unofficial translation, the official text is in Uzbek
• Law ZRU-1108 of 25 December 2025 — amendments in connection with the main directions of tax and budget policy for 2026
• Presidential Decree No. UP-100 of 26 May 2026 (as amended by UP-175 of 27 August 2026) (Uzbek text: lex.uz/docs/8236831)
• Tax Committee: "Taxation is being simplified", 27 May 2026
• Pactum reference: deadlines calendar (Russian only)