Chambers of the parliament have both passed a bill reducing fines for tax reporting violations, amending audit procedures, and expanding tax incentives for businesses. The document has been filed to the president for consideration.

Deputy Minister of Economy and Finance Akhadbek Khaidarov, speaking in the Legislative Chamber meeting on December 3, announced that the bill had been drafted taking into account the 2026 tax and budget policies.

The bill aims to implement the initiatives voiced during the meeting between the president and business leaders in August and to improve tax administration.

Specifically, it stipulates:

• a single fine for late tax report filing for several types of taxes;
• cutting administrative fines for late report filing: for officials of small businesses – from 10 to 3 BCUs, for individuals – to 1 BCU. Over the first nine months of this year, administrative fines totaling 956.4 billion soums were imposed on officials of 111,900 enterprises.
• that fines will not be imposed for five days for late reporting by businesses who filed their reports on time for the past three months. Over the first nine months, approximately 6,000 businesses were fined 2.8 billion soums for late tax reporting of up to five days.
• allowing self-employed individuals to sell goods to customers based on an invoice.
• implementing a mechanism for collecting tax arrears from the taxpayer's accounts receivable based on a reconciliation report.
• that VAT payer certificates shall be suspended for more than 30 days only through court proceedings.

Furthermore, a provision shall be entered on automatic generation of tax reports for property tax, land tax, personal income tax, social tax, VAT, and turnover tax. Tax authorities will be responsible for forming these reports.

Taxpayers are also being offered the option of paying financial penalties based on findings of on-site tax audits in equal installments over a six-month period.

"Currently, this option is only available based on findings of a tax audit. In 2024, following a tax audit, 277 businesses were given the option to pay fines totaling 302 billion soums over a six-month period," the deputy minister noted.

The bill also provides for confirmation of export transactions for goods sold through national and international marketplaces, as well as restrictions on repeat desk audits of the same incident without prior analysis.

It has also proposed that the end of an on-site tax audit be considered the day the audit report is filed electronically through the taxpayer's personal account, and that audit materials be reviewed at the taxpayer's request via videoconference.

A procedure is being established for warning taxpayers and organizing on-site tax audits regarding the use of cash registers and points of sale, inclusion of employees and wages in tax reporting, the use of land without documentation, and illegal extraction of minerals.

Starting January 1, 2026, financial penalties will not be applied for one year to taxpayers who are switching from turnover tax to value-added tax and income tax for the first time. This applies to violations of the VAT registration procedure.

It has proposed to implement a procedure for voluntary liquidation of businesses with a turnover of up to 10 billion soums and an average tax risk level based on the opinions of tax consultants and audit firms.

The Tax Code will also be supplemented with a number of additional tax incentives for businesses.

The proposed measures include:

• by January 1, 2028 - a 1% rate for corporate income tax and social tax shall be applied to entities selling fruits and vegetables in modern packaging (they will presumably retain 17.9 billion soums);
• by January 1, 2030 - a corporate income tax exemption shall be applied to creators of children's content, children's content development centers, and producers of national films and TV series, with a 1% social tax rate;
• by September 1, 2028 - a 1% social tax rate shall be applied to cotton-textile clusters, textile, and clothing enterprises;
• by January 1, 2029 - a 1% social tax rate shall be applied to greenhouse farms.

"The Tax Code also provides for a number of other benefits, which are fully reflected in the relevant provisions of the Code," the Deputy Minister noted.

Other planned benefits were also announced during the Senate debate on December 18.

In particular, the import of polyethylene granules into Uzbekistan by pharmaceutical manufacturers for their own needs will be waived from excise tax from January 1, 2025 to January 1, 2028.

Income earned by legal entities—residents and non-residents of Uzbekistan—from bonds issued by mortgage refinancing organizations, as well as their specialized authorized organizations, is exempt from corporate income tax until January 1, 2030.

The waiver applies to interest income accrued during the period of circulation of these bonds.

Starting May 1, 2025, companies that leased land plots at auction for the construction of multi-apartment residential buildings as part of the New Uzbekistan development project shall be from paying land tax on the relevant land plot for a period of 12 months from the date of lease.

If the multi-apartment residential building is not constructed and commissioned within the established deadline, the land tax for the period of exemption will be doubled.

For newly established agricultural cooperatives for the cultivation and processing of agricultural and medicinal plants, social tax, as well as personal income tax on employees hired by such cooperatives, shall be paid at a rate of 1% for the period from April 1, 2025, to January 1, 2028.

This procedure will also apply until January 1, 2030, to distributors selling imported technological equipment exempt from customs duties and used in the furniture industry.

Until January 1, 2028, the property tax and land tax rate for electric vehicle charging stations will be 1%. They will also be waived from income tax and turnover tax.

Until January 1, 2030, the National Investment Fund's dividend income will be waived from income tax.

Until January 1, 2028, a 50% subsoil use tax rate shall apply to gypsum raw material producers for their own use.

By January 1, 2028, the social tax base for local industrial enterprises will be reduced by the amount of expenses for employee transportation and meals—up to one base calculation unit per month per employee.

Currently, if a greenhouse farm fails to repay a loan, the bank takes the greenhouse (and associated real estate) onto its books and then sells the property to recoup the money.

This sale incurs taxes, including VAT on the sale and land tax for the period the property is held by the bank.

By January 1, 2028, banks are expected to be waived from VAT on the sale of greenhouse farms acquired due to loan defaults. They are also exempt from land tax on greenhouses held as collateral.

A zero VAT rate is also envisaged for services rendered to aircraft directly at Uzbekistan airports during international flights.

The bill has also proposed to equalize income tax rates for e-commerce entities (marketplaces, online platforms, etc.) to the base rate, increasing them from 10% to 15%, and turnover tax rates from 3% to 4%.

Furthermore, the minimum value per square meter used to determine the property tax base for non-residential properties owned by legal entities and individuals will increase by 7%, as will the water tax and subsoil use tax rates.

The reduced property tax and land tax rates for legal entities will increase by 7%—0.7% and 0.48%, respectively.

It has also proposed to increase the base rates for property tax for individuals and land tax for legal entities and individuals on land not designated for agricultural use by 7%.

It has proposed to calculate land tax on plots occupied by greenhouses at the rates established for agricultural land.