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Uzbekistan to launch special legal regime with reduced tax for entrepreneurs

Economy Materials 12 August 2025 13:24 (UTC +04:00)
Uzbekistan to launch special legal regime with reduced tax for entrepreneurs
Kamol Ismailov
Kamol Ismailov
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TASHKENT, Uzbekistan, August 12. Starting January 1, 2026, Uzbekistan will introduce a special legal regime for individual entrepreneurs with an annual turnover of up to 1 billion soms (approximately $92,000) and self-employed citizens, setting the turnover tax rate at 1 percent, Trend reports, citing the Uzbek President’s office.

The announcement was made during a government meeting chaired by President Shavkat Mirziyoyev, focused on creating favorable conditions for individual entrepreneurs and the self-employed.

Entrepreneurship development remains a strategic priority for Uzbekistan, as this sector plays a vital role in driving economic growth, creating jobs, and improving living standards. To support this goal, business regulations are being simplified, and the range of services and conveniences available to entrepreneurs is continuously expanding—with digital technologies playing a central role.

In order to augment transparency and facilitate the proliferation of cashless transactions, a suite of supplementary initiatives will be deployed.

A bespoke legal architecture, effective until the terminal date of December 31, 2030, will be instituted for sole proprietors and autonomous agents. This initiative will be underpinned by a cohesive digital ecosystem that amalgamates all critical functionalities—from jurisdictional registration to fiscal compliance reporting. Utilizing this platform, stakeholders can efficiently onboard their enterprises, establish and oversee financial accounts, compute and remit tax obligations, execute transactions, and produce fiscal documentation with optimal fluidity.

Entrepreneurs will have the capability to establish digital wallets within the ecosystem, facilitating the receipt of revenue and executing transactions with employees, partners, and entities, in addition to fulfilling tax obligations and other statutory fees. For individuals leveraging digital wallets, the necessity of establishing conventional banking accounts will be rendered obsolete.

Starting November 1, 2025, QR codes and “tap to pay” technologies will be implemented throughout these processes. Documents can be signed without electronic keys by using remote biometric identification and an SMS notification service; such digital signatures will carry the same legal weight as paper documents. Additionally, a pilot program for daily wage payments will be launched, allowing employee payroll settlements via electronic wallets.

Possession of a special QR code for accepting electronic payments will become mandatory for individual entrepreneurs and self-employed persons under retail trade regulations. Furthermore, data on cash flows recorded on the digital platform will be taken into account when issuing loans.

President Mirziyoyev approved the proposed measures and signed a resolution aimed at creating favorable conditions for the activities of individual entrepreneurs and self-employed citizens.

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