Which tax regime to choose (2026)

Short answer

The regime depends on two things: who you are (self-employed, sole proprietor or legal entity) and your annual income.

Even below the threshold you may choose VAT and profit tax voluntarily.

What the threshold is

• Articles 461–462 of the Tax Code set the threshold at UZS 1 billion a year.
• Presidential Decree UP-100 (clause 2) set the threshold at 12,000 times the base calculation amount (BCA) from 1 June 2026. With today's BCA that is UZS 5,280,000,000.
• The decree has not yet been written into the Tax Code. In practice the decree is applied — confirm with a tax adviser before an important decision.

Who cannot use turnover tax

Importers, producers of excise goods, fuel sellers, pharmacies and medical services, jewellery, markets and trade complexes, and others (Tax Code, article 461, part 2). From the day imports start, VAT and profit tax apply.

Simplified VAT

A business whose main activity is catering, trade or services may, from 2026-06-01 to 2030-01-01, voluntarily choose VAT at 6.0% and profit tax at 0.0% (UP-100, clauses 5–6). Under this regime input VAT on purchases is not credited.

If you exceed the threshold

VAT and profit tax start from the day income exceeds the threshold (Tax Code, article 462, part 7). For businesses registered mid-year the threshold is prorated by days (part 8).