Mirziyoyev Signs Sweeping Package of Business Reforms

Tashkent, Uzbekistan (UzDaily.uz) — President of Uzbekistan Shavkat Mirziyoyev has signed a decree "On Measures to Implement the Tasks Defined at the 6th Open Dialogue of the President of the Republic of Uzbekistan with Entrepreneurs," covering eight areas of reform — from a moratorium on business inspections to digital platform employment.

The decree was adopted following the head of state's annual open dialogue with entrepreneurs, during which around 14,000 appeals were received.

Reducing excessive interference in business

The first set of measures addresses excessive interference in business. A three-year moratorium has been introduced on any inspections of small businesses, except for inspections related to criminal cases, threats to human health, compliance with labor legislation, VAT refunds, and inspections during business liquidation.

During the moratorium, any inspection of a small business will be deemed unlawful, and those responsible will be held liable.

The Business Ombudsman will conduct an "Effective Oversight" initiative, reviewing inspection records from regulatory bodies over the past three years and conducting site visits, and will report to the Presidential Administration every six months.

From 1 January 2027 to 31 December 2028, as a legal experiment, medium and large businesses will be able to undergo a voluntary tax audit involving an auditing organization: the tax authority will recognize the auditor's findings, and if identified errors are corrected within 30 days, no fines will be applied.

The Tax Committee will maintain a registry of organizations authorized to conduct such audits.

Any repeat inspection of a business within a year will be permitted only with the Business Ombudsman's approval, except for desk tax audits.

A "warning for the first offense" rule is being introduced: if a violation caused no harm to life, health, or others' property, no fine will be applied, and the entrepreneur will be given ten days to correct the deficiency.

Starting from 1 January 2027, a system for the ongoing analysis of the causes of business closures and suspensions will be launched, with the Ministry of Justice required to ensure the corresponding automation within three months.

Reducing costs for entrepreneurs

The second set of measures is aimed at reducing costs for entrepreneurs. An economic amnesty called "Second Chance" has been declared through 31 December 2026 for small and medium-sized businesses: upon full payment of tax arrears, related penalties will be written off and enforcement proceedings terminated; if a business independently corrects its reporting and pays the additionally assessed amount, no penalty will be charged.

The condition is that the entrepreneur have no other tax debt as of 1 January 2027.

Administrative liability for failing to submit a payment order to a bank for tax payment is being abolished, the unpaid portion of a number of fines is being written off, and previously executed labor contracts can be entered into the Unified National Labor System without penalty for late submission.

From November 1, 2026, for enterprises equipped with remote metering devices for electricity and gas, the prepayment requirement will be reduced to 15 percent, and written consumption reports and paper-based energy supply contracts will be eliminated.

The government has been instructed to reimburse businesses for the cost of building utility networks for investment projects worth more than 200 billion soums (50 billion soums for Karakalpakstan and Khorezm), to automatically refund public-procurement deposits within 24 hours, and to apply partial VAT refunds and tax benefits regardless of an enterprise's sustainability rating.

The maximum limit for cash settlements has been raised to 400 times the base calculation value.

The Ministry of Economy and Finance, together with the Ministry of Justice, the Prosecutor General's Office, and the Business Ombudsman, will conduct an inventory of fines within three months and prepare a reduction averaging half their current level.

Strengthening protections for business

The third section strengthens guarantees protecting business: a "presumption of the entrepreneur's good faith" has been established, under which a business is considered to have acted lawfully until a government body proves otherwise, with the full burden of proving the validity and proportionality of decisions resting on the government body.

All irresolvable contradictions and doubts in legislation will be interpreted in the entrepreneur's favor. If a court orders a government body to reconsider a decision, the body must do so within 30 days without worsening the business's position, and after that period, enforcement measures related to that case are prohibited.

Supporting innovation and startups

The fourth set of measures is devoted to supporting innovation and startups. From 2027 to 2030, the "Kelajak Tadbirkori" ("Entrepreneur of the Future") program will be implemented: the national venture fund "UzVC" will finance up to 30 startup projects across eight priority areas — electrical engineering, machine building, pharmaceuticals, chemicals, construction materials, water- and energy-saving technologies, agrotechnology, and aerospace — with investments of up to 5 billion soums per project in the form of an interest-free loan or a SAFE agreement; the state's stake will not exceed 49 percent.

Individuals who invest in registered startups will be granted "startup investor" status, and their income from the sale of shares will be exempt from personal income tax provided they have held them for at least three years.

Expanding financial support

The fifth section expands financial support mechanisms: the joint-stock company "Business Development Company" will provide guarantees covering up to 75 percent of loans, bank guarantees, and leasing; guarantees of up to 2.5 billion soums for participants in public procurement; preferential loans of up to 5 billion soums for disciplined entrepreneurs; and mortgages of up to 15 billion soums for the purchase of unused state assets. A joint-stock "Business Fund" and a limited-liability company for the development of microfinance services will be established under the Company.

Developing tourism infrastructure

The sixth set of measures concerns the development of tourism infrastructure: banks will cover part of the interest expenses on loans for the construction and renovation of hotels above 16 percent for loans in the national currency, or above SOFR, EURIBOR, or SHIBOR rates for loans in foreign currency.

The terms have been extended for subsidies for building three-, four-, and five-star hotels (through January 1, 2029), for the preferential 0.1 coefficient applied to hotels' property and land tax (through 1 January 2030), and for the customs duty exemption on imported buses and minibuses for the tourism industry (through 1 January 2028). Starting from 1 January 2027, a zero VAT rate will apply to the services of resident tour operators provided to foreign tourists.

Improving criminal procedure legislation

The seventh section improves criminal procedure legislation: the process for returning bail amounts in criminal cases is being simplified, with interest accruing on delayed refunds at the Central Bank's rate, and material and moral damages to rehabilitated individuals will be compensated by the Ministry of Economy and Finance from a national target fund based on a court ruling.

The Prosecutor General's Office, the State Security Service, the Ministry of Internal Affairs, and the Ministry of Justice have been instructed to draft, within three months, a bill protecting entrepreneurs from unfounded criminal prosecution.

The decree also amends a number of existing presidential and government acts, including updating the membership of the Public Council for Business Support under the President and setting the maximum limit for cash settlements at 400 times the base calculation value, replacing the previously established limit of 25 million soums.