The head of state issued a decree on tax reliefs for small businesses

Important steps are being taken to improve the entrepreneurial environment in Uzbekistan and reduce the administrative burden on business representatives. Zamin.uz reports on this.

A historic decree of the head of state has been announced regarding the creation of more favorable economic and administrative conditions for small business entities. This document is aimed at introducing many tax system reliefs that entrepreneurs have been waiting for for many years.

The text provides detailed information about the essence of these reforms and their impact on business activities. One of the biggest news is the sharp increase in the threshold for mandatory transition to the general tax system.

Starting from June 1, 2026, this criterion will be raised to 12,000 times the base calculating amount, which is nearly 5 billion soums. For comparison, it should be noted that until 2020, this limit was only 1 billion soums.

Now, entrepreneurs whose annual turnover does not exceed 5 billion soums can continue to operate under the simplified system. This creates a serious opportunity for small business representatives.

Additionally, a special procedure is being introduced for entrepreneurs working in the catering, trade, and service sectors. From June 1, 2026, to January 1, 2030, enterprises without state participation will have the right to voluntarily switch to a simplified VAT system.

The tax rate in this system is 6 percent. The most pleasing part is that entrepreneurs who choose this procedure will be exempt from profit tax and released from the obligation to submit tax reports.

However, the right to account for VAT on purchased goods will not be granted. Customers, however, will retain the right to fully account for the VAT amount paid for the purchased products.

The transition to or withdrawal from the system depends on the entrepreneur's wish and takes effect from the first day of the month following the month in which the notification was sent to the tax office. The Tax Committee will ensure the implementation of the new rate calculation system in electronic receipts and invoices within one month.

All these changes are aimed at reducing the financial burden on entrepreneurs and limiting the human factor in tax administration. The goal is to develop entrepreneurial activity in a transparent, fast, and fair environment.