Uzbekistan to Introduce Special Tax System for High Earners

Uzbekistan is preparing to implement a new tax regime targeting the country’s highest earners, marking a significant shift in its approach to income taxation. The plan was announced by Mubin Mirzayev, First Deputy Chairman of the State Tax Committee, during a press conference on April 1. According to Mirzayev, more than 18 million of Uzbekistan’s 38 million residents currently earn income and pay taxes. “We have developed special tax rules for individuals with the highest incomes,” he said. “A comprehensive database will be established to prevent income concealment or misreporting.” The new system, which will take approximately a year to fully develop, will be electronic and designed to track both domestic and international income. “If a resident of Uzbekistan earns income abroad, they will also be required to pay taxes on it here,” Mirzayev stated. For non-residents, the system will consider taxes already paid in other jurisdictions to prevent double taxation. Currently, most Central Asian countries apply a flat income tax rate regardless of earnings. Uzbekistan’s plan signals a departure from that model, aligning more closely with progressive tax policies seen in other parts of the world. Mirzayev noted that the proposal echoes ideas once suggested by U.S. President Donald Trump, who advocated for tailored tax rules for high-income individuals to enhance fairness. The reform is part of broader government efforts to strengthen tax collection and promote greater equity in the system. Officials emphasize that the overarching goal is to ensure that all citizens, particularly high earners, contribute their fair share.