What tax benefits do Special Economic Zone participants receive in Uzbekistan?

SEZ participants in Uzbekistan receive a comprehensive package including exemptions from corporate income tax, property tax, and land tax for periods of up to ten years. Customs duty exemptions apply to imported equipment and raw materials. The Tashkent IT Park additionally offers a 1% income tax rate and 7.5% personal income tax for resident employees until 1 January 2028.

What types of Special Economic Zones exist in Uzbekistan?

Uzbekistan recognises five types of SEZs: free economic zones, special scientific and technological zones, tourist and recreational zones, free trade zones, and special industrial zones. Each type has its own regulatory framework and sector focus.

Are SEZ tax benefits guaranteed if legislation changes?

Yes. When tax legislation changes, SEZ participants may continue to apply the tax rates and conditions in effect at the date of their registration for the duration of their benefits — but no longer than ten years. This legislative stability guarantee does not extend to excise goods.

How do companies apply for SEZ participant status in Uzbekistan?

Companies apply to the relevant SEZ administration, meeting minimum investment thresholds set by the zone operator. The process involves signing an investment agreement, registration in the SEZ register, and issuance of a participant certificate. Advizen assists with eligibility assessment, application preparation, and regulatory compliance.

Special Economic Zones in Uzbekistan: A Comparative Guide

Special Economic Zones (SEZs) are designated territories operating under a special legal regime designed to attract investment and stimulate economic growth. Participants benefit from a comprehensive package of tax exemptions, customs privileges, legal guarantees, and currency freedoms. Uzbekistan recognises several types of SEZ, each with its own regulatory framework and sector focus.

01Legislative Framework

Customs Code of the Republic of Uzbekistan
Tax Code of the Republic of Uzbekistan
Law No. 604 of 17 February 2020 "On Special Economic Zones"
Presidential Resolution No. PP-5243 of 14 September 2021 "On measures for further support of SEZ participants"
Presidential Decree No. UP-5600 of 21 December 2018 "On further improvement of the coordination and management system of free economic zones"
Presidential Decree No. UP-153 of 13 June 2022 "On additional measures to enhance the effectiveness of special economic, small industrial, youth industrial and entrepreneurial zones"

02Types of Special Economic Zones

A Special Economic Zone is a territory with defined boundaries and a special legal regime, created to attract foreign and domestic investment, advanced technology, and management expertise for the accelerated socio-economic development of a region. SEZs may be established in the following forms:

Free economic zones
Special scientific and technological zones
Tourist and recreational zones
Free trade zones
Special industrial zones

03Special Legal Regime

SEZ participants are entitled to legal protection guarantees, benefits, and preferences provided by law. When tax legislation changes, participants may continue to apply — for the duration of their benefits but no longer than ten years — the tax rates and payment conditions that were in effect at the date of their registration in the SEZ register. This stability guarantee does not extend to excise goods.

Participants may use the payment conditions and settlement forms most convenient to them for exported and imported goods. Additional guarantees may be established by Presidential decision. Losses, lost profits, and moral damages caused by unjustified interference by state authorities are subject to court-ordered compensation.

04Special Customs Regime

The special customs regime may include temporary exemption from or reduction of customs duties, and the abolition or relaxation of non-tariff restrictions on export or import. In practice, SEZ participants are exempt from customs payments (excluding VAT and customs clearance fees) in the following cases:

Import of construction materials not produced in Uzbekistan, brought in under an investment agreement during the construction period.
Import of technological equipment without a domestic equivalent, per the approved government list (customs clearance fees remain payable).
Import of raw materials, components, and supplies used to manufacture products destined for export (customs clearance fees remain payable).

05Special Tax Regime

SEZ participants are exempt from the following taxes and mandatory contributions:

Land tax
Corporate profit tax
Property tax on legal entities
Unified tax payment (applicable to micro and small enterprises)
Mandatory contributions to the Republican Road Fund under the Cabinet of Ministers
Mandatory contributions to the Extra-budgetary Fund for Development of Educational and Medical Institutions under the Ministry of Finance

VAT on imported goods may be deferred for up to 120 days. Where the amount of creditable VAT exceeds assessed VAT, the excess is refunded to the participant within seven days under a simplified procedure. VAT refunds from the republican budget are processed in accordance with Cabinet of Ministers regulations.

06Investment-Based Duration of Benefits

Tax and customs benefits are granted for 3 to 10 years depending on the volume of investment committed:

USD 300,000 – USD 3,000,000 — benefits for 3 years
USD 3,000,000 – USD 5,000,000 — benefits for 5 years
USD 5,000,000 – USD 10,000,000 — benefits for 7 years
USD 10,000,000 and above — benefits for 10 years

07Currency Regime

SEZ participants may freely choose their servicing bank and open foreign currency accounts at one or more commercial banks in Uzbekistan, as well as maintain accounts abroad. Foreign currency revenue — including export proceeds from goods, works, and services — must be credited to the participant's account. Within the SEZ, even non-participant Uzbek resident entities are permitted to sell goods and services to SEZ participants for foreign currency.

08Additional Rights of SEZ Participants

Lease land plots through electronic online auction; use buildings and structures on lease terms; and construct infrastructure for production activities as provided by law.
Require the SEZ directorate to provide engineering, utility, and transport infrastructure on schedule in accordance with the investment agreement and project timeline.
Use all services provided by the SEZ directorate on equal terms, including on a contractual basis.
Construct infrastructure at own expense in accordance with the SEZ master plan.

09Zone-Specific Benefits

IT Park (it-park.uz)

Residents are exempt from all taxes and mandatory contributions to state-earmarked funds, including social tax, until 1 January 2028.
Employees of IT Park residents pay personal income tax at a reduced rate of 7.5% (instead of the standard 12%) on income earned until 1 January 2028.
Residents may only carry out permitted IT-related activities and must transfer contributions to the directorate's demand deposit account by the 20th of the month following each reporting period.

10How Advizen Can Help

Selecting the right SEZ, structuring an investment project to maximise the available benefits, and managing ongoing compliance obligations requires careful legal and tax planning. Advizen's team assists clients in assessing eligibility, preparing applications for SEZ participant status, drafting investment agreements, and navigating the regulatory requirements of the zone directorate.