Uzbekistan has launched an ambitious business reform initiative that promises to reshape the country’s entrepreneurial landscape through comprehensive tax relief measures and streamlined regulatory procedures. President Shavkat Mirziyoyev announced during a business dialogue session that over 20,000 entrepreneurs facing tax compliance issues worth 16 trillion soms ($1.2 billion) will receive unprecedented relief through a special amnesty program running until November 1.
The sweeping amnesty addresses widespread compliance errors discovered during recent tax audits, which had threatened to impose massive financial penalties and damage business sustainability ratings across the country. “Therefore, we are announcing a kind of amnesty. Penalties for these inspections will not be applied. Instead, entrepreneurs will be given the opportunity to voluntarily correct errors until November 1. From this moment, business will start maintaining its rating from a clean slate,” declared Mirziyoyev.
Revolutionary tax administration reforms
Starting in 2026, Uzbekistan will fundamentally transform its tax reporting system by having fiscal authorities prepare declarations for land, property, social, and income taxes on behalf of businesses. This groundbreaking approach will see government officials generate these documents free of charge, then provide entrepreneurs with five days to review and make necessary corrections — effectively eliminating the administrative burden that has long plagued small and medium enterprises.
The penalty structure is also undergoing major revision. From November 1, the current system of individual fines for each late tax report will be replaced with unified monetary penalties, with sanctions for small and medium businesses reduced by two-thirds. Additionally, companies transitioning from turnover tax to value-added tax (VAT) will benefit from a comprehensive incentive package including year-long profit tax exemptions, penalty-free error correction periods, and the ability to deduct up to 5 million soms ($400) monthly in accountant salaries from their tax obligations for six months.
Streamlined business operations and reduced barriers
The reform package includes significant adjustments to advance profit tax payment thresholds, raising the requirement from companies with 10 billion soms ($800,000) in turnover to those exceeding 20 billion soms ($1.6 million) annually. This change will free up approximately 1 trillion soms ($80 million) in working capital for nearly 14,000 businesses across the country.
Uzbekistan’s commitment to reducing bureaucratic obstacles continues with plans to eliminate 10 additional types of permits in 2026, building on the previous cancellation of 120 permission documents and digitalization of another 120. The abolition of 16 license categories in 2024 alone saved businesses 350 billion sums ($28 million), demonstrating the tangible economic impact of deregulation efforts.
Perhaps most remarkably, the country will introduce a “Business in 15 minutes” registration system in 2026. This revolutionary process will automatically provide entrepreneurs with digital signatures, bank accounts, optional rental agreements, and cash register registration with tax authorities — all completed within a quarter-hour compared to the current week-long procedure.
Strategic implications for international business expansion
These comprehensive reforms create significant opportunities for international companies in construction, manufacturing, and trade sectors considering market entry or expansion in Uzbekistan. The tax amnesty and simplified compliance procedures substantially reduce regulatory risks that have historically concerned foreign investors, while the streamlined business registration process eliminates traditional barriers to rapid market entry.
For furniture and interior design companies, construction firms, and manufacturing enterprises, the reduced bureaucratic burden and improved tax predictability create a more favorable investment climate. The elimination of multiple permit requirements and the introduction of notification-based procedures for various business activities mean international companies can establish operations more efficiently and cost-effectively. The working capital relief provided to local businesses also suggests increased domestic purchasing power, potentially expanding market opportunities for foreign suppliers of construction materials, interior furnishing products, and manufacturing equipment. These reforms position Uzbekistan as an increasingly attractive destination for international business partnerships and supply chain integration within the Central Asian region.
