26 September 2019

VAT rate will decrease from 20% to 15%

President Shavkat Mirziyoyev signed a decree on reducing the VAT rate from 20% to 15% from October 1, 2019. This should serve to improve the activities of business entities and the investment climate in Uzbekistan.

In preparing the draft state budget for 2020, the government was also instructed to provide for the abolition of the simplified procedure for the calculation and payment of value added tax, as well as the establishment of a base corporate tax rate of 15% with the preservation of the tax rate on income paid in the form of dividends.

In addition, it is planned to reduce the single social payment rate from 25% to 12% for state enterprises, legal entities with a state share in the authorized capital of more than 50%.