Question 1

What is the dividend tax rate in Uzbekistan?

Accepted Answer

For residents (individuals and legal entities) the rate is 5%. For non-residents — 10%. The tax is withheld at the source of payment: the company distributing dividends remits the tax to the budget itself.

Question 2

Who withholds dividend tax?

Accepted Answer

The tax is withheld at the source — the company distributing profit. The dividend recipient receives the net amount after tax deduction. The recipient does not need to declare this income separately.

Question 3

When are dividends paid in an LLC?

Accepted Answer

LLC participants may distribute profit quarterly, semi-annually or annually — by resolution of the general meeting. Dividends are paid only from net profit after all company taxes have been paid.

Question 4

How do rates differ for residents and non-residents?

Accepted Answer

Residents (citizens of Uzbekistan and companies registered in Uzbekistan) pay 5%. Non-residents (foreign citizens and foreign companies) pay 10%. The rate for non-residents may be reduced by international double taxation avoidance agreements.

Question 5

Are dividends subject to VAT?

Accepted Answer

No. Dividends are a distribution of profit, not a sale of goods or services. VAT is not charged on dividends. Only the dividend tax applies at 5% or 10%.

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Dividend Tax in Uzbekistan: 2025 Rates

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