Uzbekistan Proposes 5% Tax on Bank Deposit Interest

Tashkent, Uzbekistan (UzDaily.uz) — A proposal has been introduced in Uzbekistan to levy a 5% tax on interest income from personal bank deposits.

The initiative was put forward by the Institute for Reducing the Share of the Shadow Economy, Improving Tax and Customs Administration and Fiscal Analysis under the Ministry of Economy and Finance. The proposal was presented on 30 July 2026 during a fiscal dialogue.

The authors of the initiative noted that since 1998, interest on bank deposits has remained the only type of passive income exempt from taxation. At the same time, dividends are taxed at a rate of 5%, while income from rent, royalties, and capital gains is taxed at 12%.

In this regard, it is proposed to set the tax rate on deposit interest income at 5%, the same rate as for dividends. Implementing the initiative would require amendments to Article 381 of the Tax Code.

As justification, the developers cited international practice. According to the presented information, a tax on interest income from bank deposits is applied in Kazakhstan and Azerbaijan at a rate of 10%, in India at 10%, Indonesia at 20%, Thailand at 15%, Germany at 26.4%, and in Türkiye the rate ranges from 15% to 40%.

According to the institute's calculations, introducing a 5% tax would generate an additional 1.4 trillion soums for the state budget.

The estimate is based on a personal deposit volume of 170.2 trillion soums as of 1 May 2026, an average deposit interest rate of 16%, and the proposed tax rate of 5%.

The initiative was presented for discussion as part of the fiscal dialogue. The presented material did not report any decision regarding its implementation.