Mirziyoyev signs decree introducing new small business benefits

Tashkent, Uzbekistan (UzDaily.com) — President of Uzbekistan Shavkat Mirziyoyev has signed a decree titled “On creating even more favorable economic and administrative conditions for the growth of small business entities.”

The document aims to further simplify the tax regime for small businesses, improve value-added tax (VAT) administration, increase transparency of turnover, and stimulate entrepreneurial activity. The decree No. UP-100 was signed on 26 May 2026.

According to the document, starting from 1 June 2026, the threshold for transitioning to the general taxation system will be set at 12,000 base calculation units.

For business entities providing hotel and catering services, the right to accept cash payments for the sale of alcoholic beverages and tobacco products is introduced. When purchasing alcoholic products, digital marking codes for such entities will be considered as sold to the final consumer.

Catering enterprises will also benefit from a simplified procedure for registering certain categories of employees through the mobile application of labor authorities. Registration can be completed on the day of application for a specified period, including wage payments.

In addition, VAT refunds for catering businesses will be set at 40% of the tax amount regardless of the share of non-cash revenue.

For entrepreneurs operating in catering, trade, and service sectors, rent payments for the use of adjacent territories belonging to their buildings, structures, and land plots will be set at the level of a single land tax amount in accordance with the Tax Code.

The next stage of reforms will take effect on 1 January 2027.

From that date, fees for retail alcohol sales and alcohol sales by catering enterprises will be merged into a single payment. The unified rate will be set at 10% of the base calculation unit.

In addition, when individuals and legal entities lease premises larger than 1,000 square meters to businesses, minimum rental rates for tax purposes will no longer apply, except in Tashkent city.

Furthermore, small businesses will be allowed to deduct expenses for accounting services and tax consultants at double the amount for tax deduction purposes.

The Presidential Administration noted that the decree is aimed at reducing the administrative burden on businesses and creating additional incentives for legal business growth.