Payroll taxes in Uzbekistan: what is withheld and what is added on top
Checked August 23, 2026· 2 sources
Short answer
In the Republic of Uzbekistan an employer withholds personal income tax at 12% from gross pay and charges social tax at 12% on top of the payroll. Contributions to individual funded pension accounts of 0.1% are withheld inside the personal income tax already calculated and do not increase the cost of employment. Employees of an IT Park resident on employment contracts are taxed at 7.5%.
Contents
Payroll taxes in the Republic of Uzbekistan are simpler than they look, but they are consistently miscalculated — because of one distinction. Part of the payments is withheld from the amount credited to the employee; part is charged on top of it. The first reduces what the person takes home; the second increases what the employer spends.
The rates below are set by the Tax Code of the Republic of Uzbekistan of 30.12.2019 and apply for 2026.
What is withheld from pay and what does the employer pay?
The line runs in one place: personal income tax is paid by the employee, with the employer merely withholding it as a tax agent; social tax is paid by the employer itself.
| Payment | Rate | Who actually pays | Effect on the calculation |
|---|---|---|---|
| Personal income tax | 12% | Employee | Withheld from gross pay |
| Personal income tax at an IT Park resident | 7.5% | Employee | Employment contracts only |
| Social tax | 12% | Employer | Charged on top of payroll |
| Social tax for budget organisations | 25% | Employer | Charged on top of payroll |
| Contributions to individual funded pension accounts | 0.1% | Employee | Withheld inside the tax already calculated |
Hence a simple check on any calculation: take-home equals gross minus 12%, and the company's cost equals gross plus 12%. Anything that does not fit that frame needs explaining.
Why do INPS contributions not increase the cost?
This is the most common payroll mistake. Mandatory contributions to individual funded pension accounts of 0.1% of income subject to personal income tax are set by clause 5 of Presidential Resolution of the Republic of Uzbekistan No. PP-4086 of 26.12.2018.
The key point: those 0.1% are withheld from the personal income tax already calculated, not charged on top of payroll. The budget receives 11.9% rather than 12%, and the remaining 0.1% goes to the employee's individual account. The employer's cost does not change by a single soum.
There is therefore never a separate cost line for contributions to individual funded pension accounts. If one has appeared, the calculation overstates the cost of the employee.
The contribution register is submitted through nps.xb.uz with an electronic digital signature, and the payment order is generated in the taxpayer's account. A printed original of the register signed by the director and the chief accountant is kept by the employer. Contributions are also charged on civil law contracts.
What does an employee actually cost?
Take gross pay of 10,000,000 soum a month at a non-budget employer on the general regime.
| Line | Calculation | Amount |
|---|---|---|
| Gross pay | — | 10,000,000 soum |
| Personal income tax | 12% of gross | 1,200,000 soum |
| Of which to the individual account | 0.1% of gross | 10,000 soum |
| Employee takes home | Gross less tax | 8,800,000 soum |
| Social tax | 12% on top of gross | 1,200,000 soum |
| Employer cost | Gross plus social tax | 11,200,000 soum |
At a resident of the Technological Park of Software and Information Technologies (IT Park) the same gross pay leaves the employee with 9,250,000 soum: personal income tax is 7.5%. The tax burden calculator compares regimes on your own figures.
When do you file and pay?
The personal income tax and social tax return is filed no later than the 15th of the month following the reporting month. The tax is paid in the same term.
From the reporting for April 2026 the form covers personal income tax on all income except dividends, interest and rent of real estate and vehicles: those moved to a separate form under code 186. Lines 070 and 071 of the cover sheet are no longer completed.
The register of contributions to individual funded pension accounts is filed in the same term, by the 15th. The full list of forms with dates is collected in the reporting calendar.
What do inspections find most often?
- INPS contributions charged on top of payroll. The cost is overstated and the calculation does not reconcile with the register.
- The reduced 7.5% rate applied to civil law contracts. The reduced IT Park rate applies to payments under employment contracts; it does not extend to contractors.
- A civil law contract over a de facto employment relationship. Reclassification brings assessments of personal income tax, social tax and late payment charges for the whole period — covered in the HR cluster.
- Payments in kind left out of the base. Meals, housing and training paid for the employee are recognised as income unless an exemption applies.
- Pay below the minimum wage for full-time work. The minimum wage has been 1,271,000 soum a month since 1 August 2025.
What comes next
The payroll block is not checked at year end but whenever the structure of payments changes: a bonus in kind, moving an employee to a contractor arrangement or obtaining resident status changes the whole calculation.
TheBux runs payroll and HR administration for companies in the Republic of Uzbekistan — the scope is set out on the service page.
Frequently asked questions
- Does a company with no employees pay social tax?
If the company has a director, that person is an employee and receives pay, so social tax is charged. A company with no employees and no payroll pays none, but such an arrangement needs explaining: the director is engaged under an employment contract.
- Is compensation for unused leave taxed?
Yes, it is employee income subject to personal income tax. Social tax is charged on the payment under the general rules of the Tax Code of the Republic of Uzbekistan.
- How are payments to a foreign employee taxed?
The treatment depends on the individual's tax residency in the Republic of Uzbekistan, not on citizenship. Residency is determined by time physically present in the country under the rules of the Tax Code.
- Do INPS contributions reduce the amount paid to the budget?
Yes. Of the 12% calculated, 11.9% goes to the budget and 0.1% to the employee's individual funded pension account. The total withheld from the employee does not change.
- Is social tax due on civil law contract payments?
Payments under civil law contracts are taxed under the rules of the Tax Code of the Republic of Uzbekistan. Contributions to individual funded pension accounts are charged on such contracts.
- Does the 7.5% rate apply immediately after the status is granted?
The preferential regime applies from the date set by the directorate's decision, not from the date of application. Until then the calculation runs at the general rate of 12%.
Legal basis
- Tax Code of the Republic of Uzbekistan of 30.12.2019 — the personal income tax and social tax sections: base, rates, calculation and filing.
- Presidential Resolution of the Republic of Uzbekistan No. PP-4086 of 26.12.2018 — mandatory contributions to individual funded pension accounts, clause 5.
Rates are revised annually by the December tax law. Before calculating for a new year, open the Tax Code at the relevant date in the act's document card on lex.uz.
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We run this procedure end to end: we prepare the documents, file them with the state authorities of the Republic of Uzbekistan and own the deadlines.
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This material is informational and reflects the state of the legislation of the Republic of Uzbekistan as of the update date. It does not replace advice on a specific situation: how a rule applies depends on the activity, the founders and the contract terms.