President of Uzbekistan signed a decree “On creating more favorable economic and administrative conditions for the growth of small business entities” (UP-100, May 26, 2026). The document introduces significant tax changes aimed at supporting entrepreneurs.
Effective June 1, 2026, the threshold for switching to the general taxation system is set at 12,000 BRV (approximately 4.944 billion soums), up from the previous 1 billion soums. This allows more small businesses to remain on simplified regimes.
A simplified VAT regime with a 6% rate is introduced for the catering, trade, and service sectors (excluding state-owned enterprises and large taxpayers), valid from June 1, 2026, to January 1, 2030. Under this regime, the profit tax rate is 0%, reporting is abolished, but input VAT deduction and refunds are not allowed.
VAT administration is improved: the temporary suspension of VAT certificates is abolished, and mandatory VAT registration for importers is removed. From January 1, 2027, the human factor in refunding negative VAT differences will be eliminated for low-risk cases.
Administrative burden on small businesses is reduced: until January 1, 2028, entities can self-correct tax violations detected by automated risk assessment. No tax audit is conducted if the risk amount is below 500 million soums, and no on-site inspection if below 100 million soums. Bank account unblocking will be fully automated from July 1, 2026.
For hotels and catering: from June 1, 2026, cash payments for alcohol and tobacco are allowed; digital marking codes are considered sold. Simplified employee registration and a 40% VAT refund are introduced.
Rental payments: from June 1, 2026, rent for adjacent territories for catering, trade, and service businesses is set at a single land tax rate. From January 1, 2027, minimum rental rates for property over 1,000 sqm are abolished (except Tashkent).
The decree enters into force immediately, unless otherwise specified. Proposals for legislative amendments must be submitted to the Cabinet of Ministers within one month.
Source: kun.uz