Uzbekistan Tax Authority Tightens P2P Transfer Oversight

Tashkent, Uzbekistan (UzDaily.com) — Uzbekistan’s tax authorities have confirmed the strengthening of oversight over P2P transfers and inflows to individuals’ bank cards, saying inspections aim to identify hidden commercial revenue and reduce the shadow economy.

The statement followed widespread reports on social media and Telegram channels about citizens being summoned to tax authorities due to large card turnovers and high volumes of transfers between individuals.

The Tax Committee said it is currently analyzing cases in which some businesses accept payments for goods and services through personal bank cards of company managers and employees, bypassing official cash registers and tax reporting systems.

According to the agency, such income is often not reflected in official reporting, resulting in lost budget revenues.

The committee stressed that inspections are not intended as pressure on citizens or businesses, but are part of a policy to ensure economic fairness and create equal conditions for entrepreneurs operating within the legal framework.

In identified cases, taxpayers are sent notifications requesting them to correct tax filings or provide documents confirming the origin of funds.

Information about such inspections previously appeared in the “Potrebitel.uz” community, where users reported receiving inquiries from tax authorities. Participants said some citizens were provided with detailed bank statements covering several years, broken down by months, transaction counts, and incoming amounts.

In one reported case, a cardholder had more than 2,500 P2P transfers recorded over three years. Users also discussed cases where cards with annual turnover exceeding 500 million soums attracted tax attention. However, most reported cases remain under review, with no confirmed penalties or sanctions so far.

Published copies of warning letters indicate that special working groups identified instances of trade revenue being received via P2P transfers, which, according to tax authorities, resulted in concealment of the tax base. The documents cite Article 223 of the Tax Code, which provides liability for concealment or underreporting of the tax base.

Taxpayers are given 10 days to submit revised tax reports or provide documents explaining discrepancies.

Cybersecurity expert and blogger Shukhrat Kurbanov of Kurbanoff.net said a positive aspect is that tax authorities are focusing on incoming payments rather than all transfers indiscriminately. He cited Kazakhstan as an example, where transfers from more than 100 different individuals within three months may be analyzed when a certain threshold is exceeded.

However, he noted that the criteria for selecting cases for inspection in Uzbekistan remain unclear. It is not evident whether all bank cards are being mass-analyzed or whether attention is focused only on individuals engaged in business activity, he said.

Kurbanov also highlighted the need for clearer legal regulation of such monitoring mechanisms. He said current banking secrecy rules require more precise definitions regarding data sharing with tax authorities. He added that it is important not only to detect hidden income but also to understand why some businesses prefer personal cards over official business accounts.

The issue of strengthening digital control was previously discussed at a presidential meeting on reducing the shadow economy and increasing tax revenues.

Priority tasks included expanding monitoring of P2P transactions, using artificial intelligence to analyze financial operations, and introducing “smart” control mechanisms in trade, services, construction, and catering sectors.

It was also reported that updated internal control rules for commercial banks will come into force in Uzbekistan on August 9. They introduce new thresholds for transaction checks, expanded requirements for sender and recipient data, and additional criteria for identifying suspicious financial activity.