Uzbekistan Corporate Tax for Foreign Companies: 15% CIT, 12% VAT, the Turnover Tax for Small Business, IT Park Exemptions, Withholding on Dividends and Services, Payroll, the Pakistan Treaty, and Why Uzbekistan Now Out-Competes Kazakhstan on Tax

Estimated reading time: 10 minutes

Uzbekistan corporate tax for foreign companies has become a selling point rather than a footnote. Since the 2017 reforms Uzbekistan has cut and stabilised its rates, and in 2026, with Kazakhstan raising VAT and restricting deductions, commentators describe Uzbekistan as the more favourable tax environment in Central Asia. This guide sets out the general regime, the small-business turnover tax, the IT Park exemptions that matter most to Pakistani tech firms, withholding, payroll and the treaty position.

It is general information, not tax advice; rates and thresholds change with each year’s budget law, and a Tashkent accountant should confirm your position. Read it with our Uzbekistan business setup guide.

The headline rates

Uzbekistan has maintained a corporate income tax rate of 15% and a VAT rate of 12%, per Mondaq, which contrasts with Kazakhstan’s 20% CIT and 16% VAT from 2026. Personal income tax is a flat 12%, which comparative guides note is higher than Kazakhstan’s 10% band for individuals, per TaxRatesByCountry.

Corporate income tax

CIT at 15% applies to resident companies on worldwide income and to permanent establishments of foreign companies on Uzbek-source income; certain sectors (banks, mobile operators, some extractive activities) carry higher rates. Deductions follow the tax code’s expense rules; losses can be carried forward within limits. Dividends received by resident companies from Uzbek subsidiaries benefit from participation relief in defined cases.

VAT

VAT at 12% applies to supplies of goods and services and to imports; exports are zero-rated; registration is mandatory above a turnover threshold set in the tax code, with voluntary registration below it. Input VAT is creditable for registered taxpayers. A Pakistani trader importing into Uzbekistan pays import VAT at 12% and customs duty at the tariff rate, without EAEU customs-union treatment because Uzbekistan is not a member.

The turnover tax for small business

Companies with turnover below the VAT threshold may elect a turnover tax, paid as a percentage of gross revenue that varies by activity, in place of CIT and VAT, with simplified reporting. It suits a Pakistani-owned trading or service LLC in its early years; once turnover crosses the threshold the company moves to the general regime. Confirm the current threshold and activity rates with an accountant.

IT Park exemptions

IT Park residents are exempt from corporate income tax, VAT and several other taxes on qualifying IT and software activity, and foreign IT specialists employed by residents benefit from reduced personal income tax and simplified engagement, per IT Park. For a Pakistani software house exporting services, IT Park residency turns Uzbekistan into a near-zero-tax base with SWIFT banking. Residency requires registration, a qualifying activity profile and ongoing reporting. See our IT Park guide.

Withholding on non-residents

• Dividends: withheld at the domestic rate, reduced under treaty.
• Interest and royalties: withheld at domestic rates, reduced under treaty.
• Services: certain services rendered by non-residents are subject to withholding and to reverse-charge VAT where the place of supply is Uzbekistan.

A Pakistani parent charging its Uzbek subsidiary for management or IT services should model both withholding and reverse-charge VAT.

Payroll taxes

Personal income tax is a flat 12% withheld by the employer; social tax is paid by the employer at the statutory rate, with reduced rates for small businesses and IT Park residents; employees contribute to the pension fund. A foreign director on a work permit is on payroll from the start of the contract; see our work permit guide. Tax residency arises after 183 days.

Property and other taxes

Companies pay property tax on buildings, land tax on plots, and excise on defined goods; customs duties apply to imports at tariff rates. Uzbekistan has been reducing and rationalising these since 2019; check current rates for the asset class.

The Pakistan–Uzbekistan treaty

Pakistan and Uzbekistan have a double taxation agreement covering income taxes, with reduced withholding on dividends, interest and royalties and residence tie-breaker rules. A Pakistani owner claims treaty rates by presenting an FBR tax residency certificate to the Uzbek payer; without it, domestic rates apply.

Repatriating profits

Since the 2017 currency liberalisation, profits and dividends can be converted and repatriated through the banking system without the restrictions that once applied; the bank will require the tax return, the dividend resolution and proof of withholding. There is no sanctions complication. See our bank account guide.

Compliance and e-invoicing

Uzbekistan runs mandatory electronic invoicing for VAT payers and electronic tax filing for all; returns are monthly or quarterly by tax; annual financial statements follow national standards with IFRS for larger entities. Penalties for late filing are enforced; an accountant is not optional.

Uzbekistan vs Kazakhstan on tax

Kazakhstan’s 2026 reform raised VAT to 16%, halved the VAT threshold and restricted deductions for payments to simplified-regime suppliers, while Uzbekistan held CIT at 15% and VAT at 12% and is positioning itself as the more dynamic, business-friendly jurisdiction, per Mondaq. Kazakhstan’s counterweights are EAEU access and the AIFC. For a services or IT business with no need for EAEU customs treatment, Uzbekistan wins on tax; for a goods trader selling into Russia, Kazakhstan’s EAEU membership can outweigh the higher rates. See our Kazakhstan tax guide and best country guide.

Choosing a regime

• IT Park: for qualifying software and IT export; near-zero corporate tax.
• Turnover tax: for a small trading or service LLC below the VAT threshold.
• General regime: 15% CIT and 12% VAT once above the threshold or where customers need VAT invoices.

Bottom line

Uzbekistan corporate tax for foreign companies is 15% CIT and 12% VAT on the general regime, a turnover tax for small companies, and near-zero tax for IT Park residents, with treaty-reduced withholding for a Pakistani owner and free repatriation. It is the corridor’s best general tax environment in 2026; its limit is the absence of EAEU customs access, which is the trade-off against Kazakhstan.