Taxes for Sole Proprietors in Uzbekistan: A Regime Overview
Individual entrepreneurs in Uzbekistan can operate under different tax regimes. We explain each option — turnover tax, patent, and VAT — who each suits and when you must switch.
In Uzbekistan, a sole proprietor (YaTT / IP) can choose from several tax regimes. The right choice affects your tax burden, reporting obligations, and the threshold at which VAT registration becomes mandatory.
Turnover Tax (Single Tax Payment)
The turnover tax is the default regime for most sole proprietors. The rate is 4% of total revenue, regardless of expenses. No cost tracking required — just pay 4% of your receipts.
- Rate: 4% of revenue (6% for alcohol/tobacco trade, 1% for agriculture)
- Applicable to most types of business activity
- Declaration filed quarterly
- Valid while annual turnover stays below 1 billion UZS
Patent System
A patent is a fixed-amount tax paid monthly or quarterly regardless of actual income. The amount depends on business type and region.
- No income tracking required — just pay the fixed amount
- Available for a limited list of activities: transport, repairs, market trading, and others
- Patent fees in Tashkent are higher than in other regions
The patent cannot be used if you have more than one hired employee or exceed the income limits for your activity.
VAT — When It Becomes Mandatory
If annual turnover exceeds 1 billion UZS, the sole proprietor must register as a VAT payer. The VAT rate is 15%.
After switching to VAT, the entrepreneur also pays profit tax (15%) instead of the turnover tax.
VAT is not added on top of turnover tax — it replaces the regime. With proper input VAT deductions, the actual burden can be lower than it appears.
Regime Comparison
If you are just starting out, begin with the turnover tax — it is the simplest regime. Check if your activity qualifies for a patent: at low income levels it can be cheaper than 4%.
| Regime | Rate | Turnover limit | Best for |
|---|---|---|---|
| Turnover tax | 4% of revenue | Up to 1B UZS/year | Most sole proprietors |
| Patent | Fixed amount | Per activity list | Services, market trade |
| VAT + profit tax | 15% + 15% | No limit | Turnover above 1B UZS |
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