On December 25, 2025, the President of the Republic of Uzbekistan signed the Law “On making amendments and addenda to certain legislative acts of the Republic of Uzbekistan aimed at ensuring employment of the population by supporting business entities, as well as expanding the production of goods with high added value”.

The Law introduces significant tax incentives for the textile industry, the services sector, agriculture, medicine, and residents of the Creative Park, and also simplifies business liquidation procedures.

1. Simplification of the Liquidation Procedure for Inactive Entities

Amendments have been made to the Civil Code (Articles 24, 53) and the Law “On Guarantees of Freedom of Entrepreneurial Activity” (Article 49).

• Substance of the change: If an individual entrepreneur (payer of turnover tax or VAT) or a legal entity does not carry out financial and economic activity and for this reason has been transferred by tax authorities to the “inactive regime” (harakatsiz rejim), and does not resume activity within one year from that moment, they can be liquidated by a decision of the registering authority.

• Exception: This procedure does not apply to non-governmental non-profit organizations (NGOs).

• Goal: To simplify the clearing of the registry from actually non-functioning entities without the need for court procedures or the initiative of the entrepreneur themselves.

2. Changes in Tax Administration (Tax Code)

• Revised Reporting: If a taxpayer submits a revised tax return that reduces the amount of personal income tax (PIT) or social tax due to the application of benefits, such a return is accepted only after the tax authorities have studied the justification for applying the benefit.

• Freight Forwarding Services: It is established that the zero VAT rate (provided by Article 263 of the Tax Code for international transportation) also applies to transport and forwarding services rendered under a transport expedition contract when organizing international transportation.

  • Such services include: receipt and delivery of goods, loading and unloading, storage, organization of insurance, customs clearance, cargo search, and storage at the forwarder’s warehouses.

     

3. Special Tax Regime for Textile, Sewing-Knitwear, Leather, and Footwear Industries

New support norms have been introduced into Article 483 of the Tax Code for the period from January 1, 2025, to January 1, 2028.

• Preferential Rates:

  • Profit Tax — 2%;

  • Social Tax — 1%.

• Conditions for Application:

  1. The average monthly wage of employees must be at least 2 times the minimum wage (MRO).

  2. The share of income from the sale of industry products (weaving, sewing-knitwear, footwear, leather goods) and services for processing customer-supplied raw materials in the total income volume must be at least 70%.

• Procedure: Compliance with criteria is determined by tax authorities automatically (without human factor) based on the results of the reporting quarter by the 25th day of the following month. If a discrepancy with the conditions is revealed upon recalculation, the benefit is cancelled with the accrual of penalties.

   

4. Benefits for the Services Sector When Hiring Youth

For the period from January 1, 2025, to January 1, 2028, a social tax rate of 1% is established for entrepreneurs hiring employees not older than 30 years.

• Spheres of Activity: Retail trade, public catering, hotel services, passenger and cargo transportation, vehicle repair and maintenance, computer services, household appliance repair, agro and veterinary services, entertainment center services.

• Conditions:

  1. Average monthly employee salary — at least 2.5 times the MRO.

  2. Income from the indicated types of activities constitutes at least 60% of total income.

• Restriction: The benefit is cancelled if facts of concealing the number of employees are revealed.

   

5. Support for High Technologies

Incentives for manufacturers of products based on high technologies (list approved by the President) have been introduced into the Tax Code.

• Profit Tax: 0% rate on profit derived from the sale of high-tech products. The benefit applies for 3 years from the date the object is put into operation.

• Property Tax: High-tech production equipment is exempt from property tax for a period of 3 years from the moment of commissioning.

6. Benefits for Residents of the “Creative Park”

For residents of the Creative Park, the following preferences are introduced for the period from May 1, 2025, to January 1, 2031:

• Labor Taxes: PIT and social tax rates on employee incomes are reduced by 50% from the established rates.

• Tax Regime: Residents are recognized as payers of turnover tax regardless of revenue volume (i.e., they do not switch to VAT and profit tax upon exceeding thresholds).

7. Agriculture and Land Relations

• New Orchards: From January 1, 2025, to January 1, 2028, the import of saplings, rootstocks, grafts, mother materials, and special equipment for creating new orchards (according to the list of initiators approved by the President, from countries other than neighboring ones) is exempt from VAT.

• Cooperatives: For newly created cooperatives for growing and processing agricultural products and medicinal plants, social tax and PIT rates for employees are set at 1% for the period from April 1, 2025, to January 1, 2028.

• Pastures (Yaylov): Lands of territorial pasture farms (created as state institutions under the Veterinary Committee) are included in the category of lands subject to special taxation features.

• Land Tax: The reduction coefficient to the land tax rate for certain categories has been lowered from 0.25 to 0.1.

   

8. Medicine and Pharmaceuticals

• Excise Tax: From January 1, 2025, to January 1, 2028, the import of polyethylene granules by pharmaceutical manufacturers for their own production needs is exempt from excise tax.

• Property Tax: Exemption from property tax (under Art. 461 of the Tax Code) is extended to enterprises engaged in the trade of medicines and medical devices, as well as providing medical services.

   

9. Construction and Mortgage

• “Yangi O‘zbekiston” Massives: Legal entities that have leased land plots through auction for the construction of multi-apartment houses in these massives are exempt from land tax for 12 months from the moment of lease (effective from May 1, 2025).

  • Important: If the house is not completed on time, the tax is collected in 2-fold amount for the entire period the benefit was used.

• Bonds: Income on bonds issued by mortgage refinancing organizations is exempt from profit tax until January 1, 2030.

   

10. Other Changes

• Education: The social tax benefit (1%), previously provided for business entities, is now explicitly extended to non-state preschool and general secondary educational organizations.

• Budget Code: The operation of Article 51 of the Budget Code is suspended from January 1, 2025, to January 1, 2027.

   

Effective Dates

• The Law enters into force on the day of its official publication.

• Provisions regarding medical benefits (property tax) and cooperatives apply to relations arising from April 1, 2025.

• Provisions on the textile industry, orchards, excise on granules, mortgage bonds, and youth apply from January 1, 2025.

• Provisions on the “Creative Park” and lands of “Yangi O‘zbekiston” massives apply from May 1, 2025.

   

Source: The Law of the Republic of Uzbekistan No. ORQ-1104 dated 25.12.2025