Question 1

How does a self-employed person differ from an individual entrepreneur in Uzbekistan?

Accepted Answer

A self-employed person (hunarmand) pays a fixed tax of 1 BFP (~340,000 UZS) per month regardless of income. This is advantageous at low turnovers. However, income must not exceed 100 million UZS per year, and hiring employees is not allowed. An individual entrepreneur pays a simplified tax: 6% on services or 4% on trade.

Question 2

When is it better to open an LLC instead of an individual enterprise?

Accepted Answer

Tax-wise, an LLC on the simplified regime pays the same 4–6% plus a 5% dividend tax. This makes an LLC slightly more expensive than an IE at the same turnover. LLCs are chosen for other reasons: working with large corporate clients, bringing in co-founders, limited liability, or plans to scale.

Question 3

What tax regime does the calculator use?

Accepted Answer

The calculator uses the simplified tax regime (unified turnover tax) — the most common for small businesses in Uzbekistan. Rates: 6% for services, 4% for trade and manufacturing. For LLCs, an additional 5% dividend tax is factored in when withdrawing profit.

Question 4

What is social tax and who pays it?

Accepted Answer

Social tax (12%) is paid by the employer on top of the employee's salary. So if you pay a worker 3,000,000 UZS, the actual cost to you is 3,360,000 UZS. For IEs and LLCs on the simplified regime, this is a direct expense that affects net income.

Question 5

Does an individual entrepreneur need an accountant?

Accepted Answer

For an IE on the simplified regime, accounting is minimal — a tax return is filed once per quarter. Most IEs handle this themselves via my.soliq.uz. An LLC requires full-scale bookkeeping: balance sheets, expense tracking, and monthly reporting.

Sole Trader vs LLC vs Self-employed

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