Mirziyoyev decree simplifies small business taxation

Tashkent, Uzbekistan (UzDaily.com) — President of the Republic of Uzbekistan Shavkat Mirziyoyev on May 29, 2026 signed a decree on creating more favorable economic and administrative conditions for small business entities.

The document introduces a simplified VAT payment regime, increases the threshold for transitioning to the general taxation system, and reduces the number of tax audits.

New threshold and simplified VAT

From June 1, 2026, the threshold for mandatory transition to the general taxation system will be increased to 12,000 base calculation units. At the same time, for small business entities operating in catering, trade, and services, a voluntary simplified VAT payment regime is introduced until January 1, 2030.

Within this regime, the VAT rate is set at 6% of total turnover from the sale of goods and services. The corporate income tax rate is set to zero, and the obligation to submit corresponding reports is abolished. The right to offset VAT paid on the purchase of goods and services under the simplified regime is not provided.

The regime does not apply to enterprises with a state share of 50% or more, as well as to large taxpayers.

Support for catering and trade

The decree provides a number of sector-specific measures for catering and trade enterprises.

From June 1, 2026, establishments selling alcohol and tobacco products will be allowed to accept cash payments. At the same time, digital marking codes for alcohol will be considered redeemed at the moment of sale to the end consumer.

For catering enterprises, a 40% refund of paid VAT is introduced regardless of the share of non-cash revenue, as well as a simplified procedure for hiring certain categories of employees through the mobile application of the labor authority.

From 2027, fees for the right to retail alcohol sales will be combined into a single payment of 10% of the base calculation unit. At the same time, small business expenses on hiring accountants and tax consultants will be deductible at double the amount.

Automatic VAT refund and abolition of inspections

The decree significantly changes the VAT administration procedure.

VAT negative difference amounts up to 10 million soums accumulated before the entry into force of the document will be automatically refunded to taxpayers without application and without inspection.

From 2027, human involvement in the VAT refund process for low tax risk levels is planned to be completely eliminated.

The Tax Committee together with the Ministry of Economy and Finance must implement by October 1, 2026 a system for automatic real-time VAT negative difference refund.

For small business entities until January 1, 2028, the possibility of self-correction of tax violations is also introduced: tax audit will not be conducted for tax risk amounts up to 500 million soums, on-site inspection will not be conducted for amounts up to 100 million soums.

Goals of the reform

According to the decree, the reform pursues four main goals: creating economic and administrative conditions for business growth, expanding a transparent tax base without increasing basic rates, improving digital and risk-based tax administration, and ensuring a balance of interests of the state, business, employees, consumers, local budgets, and investors.