In Uzbekistan, the tax base for real estate is determined at market value

In Uzbekistan, the system for determining the tax base for real estate and certain types of goods is undergoing a major overhaul. This was reported by Zamin.uz.

The main objective of these changes is to expand the volume of cashless settlements in the economy, significantly reduce the scope of shadow economic activity, and prevent artificial lowering or raising of prices in the market. As instructed by the President, the tax base for real estate and construction materials is to be established based on market value.

In this regard, the Cabinet of Ministers has approved the regulation on determining the tax base according to the market prices of certain goods. This document specifies clear mechanisms for calculating tax liabilities on real estate objects and livestock products in accordance with the requirements of the Tax Code.

According to the new procedure, if the price indicated in documents submitted by taxpayers differs from the market value by more than twenty percent, tax authorities have the right to recalculate the tax base. This means that if the price stated in a contract sharply deviates from the actual market value, taxes will be levied based on the real value.

Tax authorities use the comparable prices method to determine market value. The market value of real estate is established based on state appraisal conducted by a government body authorized in this field.

In the process of determining market prices, tax service officials refer to various reliable sources of information. These include the unified electronic system of notarial acts, online auctions, state procurement platforms, and official price lists of sellers.

For livestock products, the basis is taken from the prices of similar goods formed in commodity exchanges. For example, if residential buildings in Tashkent are documented at prices several times lower than market value, tax authorities will investigate such cases.

If the difference between the official price and the market value exceeds the established threshold, the tax base is calculated not from the contract amount, but from the determined actual market value. As a result, business entities will be required to pay additional value-added tax and profit tax in full.

This approach helps establish fair competition conditions in the market and ensures the stability of revenues flowing into the state budget.