Taxes for sole proprietors
Since 2026 there is no fixed tax: turnover tax at 1.0% or VAT and profit tax; social tax is mandatory.
For information only. This is not tax advice — check the source before an important decision.
Law as of Oct 17, 2026
What changed in 2026
- The fixed personal income tax was abolished (PP-247, clause 5).
- The declaration-based personal income tax regime was removed for sole proprietors (Tax Code, article 385).
If income is below the threshold
- Turnover tax at 1.0% (Tax Code, article 467).
- Report and payment — monthly, by the 15th of the following month; annual report — by 15 February (Tax Code, article 470).
If income is above the threshold
- VAT at 12.0% — report and payment by the 20th of the following month (Tax Code, article 273).
- Profit tax at 15.0% — quarterly report by the 20th of the following month, annual by 1 March (Tax Code, article 339).
Social tax for yourself
Mandatory: at least 1 BCA (UZS 440,000) a month, by the 15th of the month of activity. A new sole proprietor starts from the month after registration (Tax Code, article 408).
If you hire staff
- You withhold and pay 12 % personal income tax from wages (tax agent).
- For each employee — at least 1 BCA of social tax a year by 31 December, mandatory; a separate payment order per employee (Tax Code, article 408).
Common penalties
- Breaking the income and expense book rules — UZS 500,000 (Tax Code, article 222).
- Doing business without registration — 10 % of income, at least UZS 1 million (Tax Code, article 219, part 5).
- Income from renting out property is not turnover tax but 12 % personal income tax.