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Uzbekistan Regulatory Updates September 2024

Hatice Ozcan

Sep 13, 2024

Uzbekistan Introduces New Tax Initiatives: VAT Cashback, Land Tax Reductions, and Export Refunds


On August 21, 2024, the Uzbek State Tax Committee introduced a set of significant tax initiatives aimed at supporting various sectors of the economy. Here are the key points:


  • VAT Exemption on Land Acquisitions

    Entrepreneurs who acquire land through auction sales will benefit from a VAT exemption, alleviating the financial burden of such purchases.


  • Land Tax Reduction

    A 50% reduction in land tax will be offered for new land allocations outside regional centers, applicable during the construction phase, making development projects more cost-effective.


  • VAT Cashback for Tourism Industry

    Starting October 1, 2024, the tourism sector will benefit from a 20% VAT cashback on payments made to hotels and tour operators, incentivizing the industry to grow.


  • VAT Cashback for Catering Businesses

    From January 1, 2025, catering establishments will be eligible for partial VAT refunds, further easing their tax obligations and supporting the growth of food service providers.


  • VAT Refunds for Exporters

    A streamlined process for VAT refunds will be introduced, using electronic customs data as the sole requirement for refund claims, simplifying the procedure for exporters.


  • Profit Tax Reduction for Cafes and Restaurants

    A 50% reduction in profit tax will be granted to restaurants and cafes, offering substantial savings and promoting growth within the food service sector.


These tax measures, scheduled for phased implementation, reflect Uzbekistan's efforts to stimulate economic activity and provide targeted relief to key industries.

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