IT Park Uzbekistan: residency and tax incentives

The Technological Park of Software and Information Technologies (IT Park) in the Republic of Uzbekistan is a tax regime, not a campus. A resident works from any city in the country and keeps the incentives at its place of registration.

The operating rules, resident registration, application of incentives and the list of eligible activities are set by Cabinet of Ministers Resolution No. 589 of 15.07.2019. The current version of that act on lex.uz settles any disputed question about the status.

Which taxes does IT Park residency remove?

An IT Park resident in the Republic of Uzbekistan is exempt from all types of taxes and mandatory contributions to state target funds: profit tax, turnover tax, value added tax and social tax. The exemption runs until 1 January 2028.

Employee pay received before 1 January 2028 under employment contracts with an IT Park resident is taxed at a fixed personal income tax rate of 7.5% instead of the standard 12%, and is excluded from the individual's total annual income.

Because payroll is the dominant cost line in software development, social tax and personal income tax usually move the result more than profit tax does. Run your own figures through the tax burden calculator.

Alongside taxes, a resident pays a contribution to the technopark directorate. That contribution is moving to a differentiated scale, so its size is checked against the current version of Resolution No. 589 of 15.07.2019 and is not quoted here.

Who can become an IT Park resident?

A resident is a legal entity of the Republic of Uzbekistan whose main activity appears in the list in Annex 2 to Cabinet of Ministers Resolution No. 589 of 15.07.2019. An individual entrepreneur and a foreign company without local registration cannot apply.

The list covers software design, development and implementation for any platform including games, software support and training, database creation and maintenance, automated management systems, technical and cryptographic information protection, multimedia and design, animation production, IT venture financing, esports and IT education.

The list is revised and individual areas have been removed from it: at various times restrictions have applied to payment organisations, payment system operators, marketplaces and microfinance organisations. Read the current version before building a plan on the incentives — the eligibility quiz walks through the same questions the directorate asks.

How do you apply for residency?

The application is filed by a company that already exists. If there is no entity yet, the sequence starts with company registration for a foreign founder.

1. Align the OKED codes with the actual activity and with the subject matter of client contracts. A mismatch between the code, the charter and the contracts is the most common reason for refusal.
2. Prepare a product or service description that shows the link to software development or IT services.
3. Prepare an economically justified business plan for the declared activity — it is part of the candidate requirements.
4. Attach staffing and contract data showing the work is performed in-house rather than fully subcontracted.
5. File with the IT Park directorate and follow the review through to a decision.
6. Reconfigure accounting once the status is granted: the regime applies from the date in the decision, not from the filing date.

How does a resident keep the status?

The status rests on continued compliance, and compliance is checked. Losing it means recalculating taxes under the general rules for the period concerned.

• Watch the revenue mix. Income from activities outside the list is taxed normally, and a large share of it puts the whole status in question.
• File the annual resident report. Failure to report is itself a ground for revoking the status under Resolution No. 589 of 15.07.2019.
• Keep contracts and acceptance acts with foreign clients in order. They evidence both the incentive and the legitimacy of the currency proceeds.
• Employ developers under employment contracts. The reduced 7.5% personal income tax applies to employees of a resident; moving the team to civil law contracts removes the effect.
• Track changes to the activity list. Removing an area from the list ends the incentive for companies built on it.

Does residency change currency control obligations?

No. A resident of the Technological Park of Software and Information Technologies (IT Park) remains subject to the currency legislation of the Republic of Uzbekistan. A foreign trade contract is registered in the established order and proceeds are repatriated within the statutory period.

Presidential Resolution No. PP-87 of 26.02.2024 adds support measures for exporters of digitalisation services, but it does not replace contract registration and repatriation duties. The procedure is covered in the foreign trade and currency regulation cluster.

What comes next

Residency pays off only with accounting configured for it: the regime applies from the decision date, the resident report is filed annually, and the revenue mix is monitored continuously. The economics are worth calculating before the application, not after.

TheBux prepares companies for residency and runs resident accounting, including reporting to the technopark directorate — the scope is set out on the service page.