Tax Committee Denies Additional Levies on Property Registration

Tashkent, Uzbekistan (UzDaily.uz) — The Tax Committee of Uzbekistan has refuted reports circulating on social media claiming that when newly constructed non-residential real estate objects are registered in Tashkent, entrepreneurs are allegedly assessed additional value-added tax (VAT) and profit tax based on the market value of the property.

The department emphasized that such claims do not comply with the requirements of tax legislation.

According to the Tax Code, the obligation to pay VAT arises only when an object of taxation exists, such as the sale of goods, the provision of services, or other transactions recognized as a sale. In such cases, the tax base is determined based on the cost of the goods or services being sold.

The Committee explained that placing a newly constructed real estate object on the cadastral register does not in itself constitute a sale, does not involve transferring the property to another person, and, consequently, does not create a tax base for VAT. Similarly, there are no grounds for assessing profit tax solely based on the fact of cadastral registration of an object.

The department also clarified that Cabinet of Ministers Resolution No. 253, dated 18 May 2026, is aimed at preventing the understatement of the tax base during the sale of specific goods, including real estate objects, if the transaction value differs significantly from the market price. This procedure applies exclusively to sales operations and does not provide for the assessment of VAT or profit tax during the mere registration of an object in the cadastre.

Thus, if an entrepreneur has built a real estate object and registered it in accordance with the established procedure but does not sell it, the difference between the market value of the object and the construction costs does not constitute grounds for additional tax assessments.

The Tax Committee noted that during any subsequent sale of the object, tax obligations are determined in accordance with the Tax Code and other regulatory legal acts, taking into account the conditions of the specific transaction and the rules for forming the tax base.

The department stressed that it has not issued instructions to assess additional taxes solely based on the fact of cadastral registration of new real estate objects. All actions of the tax authorities are carried out strictly within the powers provided by legislation.

Entrepreneurs who encounter unlawful demands for tax payments in the absence of an object of taxation are advised to contact the Tax Committee. The department stated that every such appeal will be reviewed in accordance with the established procedure, and if violations are confirmed, appropriate measures will be taken.

According to the Committee's assessment, the application of mechanisms to determine the tax base based on market prices is aimed at ensuring fair competition, preventing the artificial understatement of transaction values, and protecting the legitimate interests of honest taxpayers.