Tax benefits for small businesses in Uzbekistan will be expanded, and the inspection procedure will be simplified.

From June 1, 2026, it is expected that the threshold for the simplified tax regime for small businesses in Uzbekistan will be expanded, a number of tax benefits will be introduced, and inspections and administrative procedures will be reduced. President Shavkat Mirziyoyev reviewed proposals aimed at creating more favorable economic and administrative conditions for the growth of small business entities.

 

According to the presentation, the threshold for the simplified tax regime for small businesses is planned to be increased from 1 billion soums to 5 billion soums. This change is expected to ease the early transition of many entrepreneurs to VAT and income tax, as well as enable business expansion.

 

Additionally, a simplified 6% VAT procedure is envisaged for the catering, trade, and service sectors. The VAT refund process for low-risk entrepreneurs will be fully automated.

 

In accordance with current procedures, it is planned to abolish the practice of temporarily suspending VAT certificates and to introduce restrictions on tax audits and on-site inspections. Furthermore, measures will be implemented to open bank accounts and digitize certain financial processes.

 

In order to reduce administrative pressure on small business entities, it is proposed to introduce a procedure that allows entrepreneurs to independently correct errors and to refrain from conducting tax audits in cases where the tax risk is up to 500 million soums, and from conducting on-site tax inspections where it is up to 100 million soums.

 

It is noted that the main goal of these reforms is to bring small businesses out of the "shadow" economy, reduce the need to conceal turnover, and create a fair and simplified business environment for entrepreneurs.

 

According to calculations, the new benefits are expected to serve the legal expansion of over 600,000 small business entities.