UZBEKISTAN LEGAL NEWSLETTER: JUNE 2025

A new Law has been enacted to streamline and improve tax administration. It is among other things provided that taxpayers with no outstanding liabilities are now permitted not only to receive refunds or offset overpaid or excessively collected taxes against future taxes of the same type, but also to offset such amounts against other types of taxes. This must be done within 3 business days upon the taxpayer’s physical or electronic request.

Additionally, the President has issued a Decree expanding the scope of tax incentives available to enterprises with direct foreign investment, as provided under the Tax Code and Presidential Decree No. UP-3594 of 11 April 2005. The incentives now also apply to enterprises operating in the agricultural sector, as well as to enterprises in the listed industries that are located in designated districts of the Tashkent region.

Law No. ZRU-1071 of 26 June 2025 
Presidential Decree No. UP-97 of 23 June 2025

 2.  REHABILITATION AND LIQUIDATION OF BANKS

A Law “On Rehabilitation and Liquidation of Banks” has been adopted. It will enter into force on 25 September 2025 and will, among other things, provide the following:

• the Law applies to banks, bank groups, and holding companies that own majority shares in a bank and at least one other financial institution;
  
  
• the Central Bank of Uzbekistan (CBU) is designated as the competent authority under the Law and is responsible, among other things, for developing rehabilitation plans for systemically important banks and those performing critical functions;
  
  
• rehabilitation measures may be initiated even in the absence of a pre-approved rehabilitation plan. When a decision to rehabilitate a bank is made, the CBU assumes the powers of the general meeting of shareholders and may appoint a special manager, who will exercise the authority of the bank’s supervisory and executive bodies;
  
  
• rehabilitation procedures may be initiated where: (i) a bank is insolvent or at serious risk of insolvency; (ii) taken remedial measures have proven ineffective; and (iii) the bank is either systemically important or its mandatory liquidation would not achieve the objectives set out in the Law;
  
  
• a bank is considered insolvent if any of the following occur: (i) customer claims remain unsatisfied for 7 days due to insufficient funds; (ii) liabilities exceed assets; (iii) the bank’s capital adequacy ratios and/or authorized capital decrease by 50% or more below the statutory minimum; (iv) the CBU identifies discrepancies in the bank’s financial reporting that confirm any of the above circumstances; or (v) there are conditions threatening the safety of funds entrusted by depositors or creditors;
  
  
• rehabilitation may be carried out through: (i) transfer of assets and liabilities to another bank; (ii) creation of an interim bank, whose assets and liabilities will later be transferred or sold; or (iii) write-down and/or conversion of claims. Funding may be sourced from the Deposit Guarantee Fund, the state budget, and other lawful sources;
  
  
• loss absorption is primarily borne by shareholders, in proportion to their shareholding;
  
  
• voluntary liquidation may only be carried out with the approval of the CBU and solely if the bank is solvent and not at risk of insolvency. Non-systemically important banks may be subject to mandatory liquidation by decision of the CBU or a court.

Additionally, the CBU has introduced amendments to the rules governing asset acquisition and investment activities for commercial banks. Some of its key provisions include:

• banks are now permitted to own companies engaged in factoring services;
  
  
• the existing 15% limit on acquiring shares in a single legal entity has been extended to also cover the establishment of new entities.

Law No. ZRU-1070 of 23 June 2025 
Resolution of the Central Bank of Uzbekistan No. 3441-1 of 2 May 2025