UZBEKISTAN LEGAL NEWSLETTER: AUGUST 2025

The President has issued a Decree implementing commitments made at the 5th Open Dialogue of the President with Entrepreneurs. Effective immediately, the Decree provides for the following measures:

• in 2026–2027, a total of UZS 270 trillion (approx. USD 21.8 billion) will be allocated to support entrepreneurship, including UZS 4 trillion (approx. USD 323.9 million) in budgetary funds for the development of free economic zones, small industrial zones, and large industrial projects with foreign direct investment, as well as UZS 250 trillion (approx. USD 20.2 billion) for small and medium-sized businesses;
  
  
• the threshold amount of income for business entities required to make monthly advance payments of corporate income tax is increased from UZS 10 billion (approx. USD 809,700) to UZS 20 billion (approx. USD 1.6 million). In addition, when businesses construct and hand over social infrastructure facilities free of charge using their own funds, related expenses will be deductible from the corporate income tax base;
  
  
• within 2 months from the date of the Decree, the Tax Committee will submit to the Cabinet of Ministers a draft law providing for: (i) reduction of administrative fines for late tax reporting; (ii) consolidation of fines for multiple unsubmitted tax reports into a single penalty; (iii) exemption from administrative fines for delays of up to 5 days in cases where businesses have submitted reports on time during the previous 3 months;
  
  
• by the end of 2025, the Supreme Court and the Business Ombudsman will prepare a draft law allowing businesses to bring cases before any economic or administrative court on an extraterritorial basis;
  
  
• starting from 1 January 2026, responsibility for preparing property and land tax reports for legal entities, as well as personal income and social tax reports for individuals, will shift from taxpayers to the tax authorities. Taxpayers will have 5 business days to amend reports, if needed;
  
  
• starting from 1 January 2026, expenses incurred by businesses for constructing, equipping, expanding, or converting facilities into hotels will be partially reimbursed from the State Budget;
  
  
• starting from 1 May 2026, the creditworthiness of businesses will be assessed using data from public and private sector databases, including information on expenditures (taxes, utility bills, transactions, and other positive indicators), turnover, and export operations;
  
  
• until 1 January 2027, businesses without state shareholding will be exempt from fines for overdue receivables under foreign trade operations. If cases of overdue accounts receivable are resolved during the moratorium period, any fines previously imposed shall be cancelled;
  
  
• the List of Upcoming Legislative Changes (Annex No. 1 to the Decree) includes the adoption of an Investment Code and the introduction of the “astreinte” system, which imposes penalty payments on debtors for delays in complying with court orders;
  
  
• The Action Plan of Practical Measures (Annex No. 2) includes:
  • allocation of UZS 2 trillion (approx. USD 161.9 million) for the Tashkent city electricity network in 2026;
  • piloting gravitational accumulator technologies in Uzbekistan;
  • allocation of USD 300 million for working capital financing of promising exporters in the electrotechnical, construction materials, and pharmaceutical industries; and
  • establishment of large, year-round resort zones (300–500 ha each) in Qorabog‘ (Chortoq district), Chimyon (Fergana district), Omonxona mahalla (Boysun district), and Nurbuloq township (Nurobod district), with USD 150 million to be raised from international financial institutions for infrastructure.

Presidential Decree No. UP-138 of 19 August 2025

 2.  ALTERNATIVE INVESTMENTS

The President has signed a Resolution introducing a regulatory sandbox regime aimed at attracting funds through investment platforms. The Resolution, among other provisions, stipulates the following:

• the regime will be effective from 1 October 2025 to 1 October 2026 and will cover: (i) the placement and circulation of investment securities; (ii) the financing of venture and mutual funds; and (iii) contributions to kommanditnoe tovarishchestvo (a specific form of partnership under Uzbek law);
  
  
• business entities will be allowed to post projects on investment platforms to attract funding. Investors may select such projects, contribute funds, and receive profits in return. Project management may also be carried out by investment or management companies;
  
  
• investments through investment platforms will be confirmed by digital certificates issued in the name of the entity raising funds. These investments cannot be pledged, diverted for other purposes, or recovered by platform operators or third parties, except by court decision. The responsibility for repayment and profitability lies solely with the investee entity. Smart contracts may be used;
  
  
• operators of investment platforms must be resident legal entities, included in a special electronic register, and required to maintain a register of concluded contracts;
  
  
• entities seeking investment must, together with their project listing, provide an audit opinion confirming the absence of insolvency indicators and compliance with tax and accounting laws for the previous financial year;
  
  
• the National Agency for Project Promotion (NAPP) will serve as the competent regulatory authority. It will: (i) approve permitting procedures for platform operators by 1 October 2025; (ii) maintain the relevant electronic registers; and (iii) supervise the operations of investment platforms;
  
  
• investment agreements concluded via platforms must be executed electronically, with information about investors reflected in the Unified State Register of Business Entities in real time;
  
  
• by 1 January 2027, NAPP and the Ministry of Justice will submit proposals for the nationwide implementation of investment platforms.

Resolution of the President of the Republic of Uzbekistan No. PP-255 of 21 August 2025