Dividend tax in Uzbekistan in 2026 is 5% for residents, both individuals and companies. Non-residents pay 10% unless a double tax treaty provides a lower rate. The shareholder does not pay the tax itself: the company paying the dividend withholds it as a tax agent and remits it to the budget no later than the payment date.
Below: rates for different recipients, the special rule for founders of IT Park residents, how the payout decision is made, the net asset restrictions, deadlines and a worked example.
Dividend tax rates in 2026
| Recipient | Rate | Who pays |
|---|---|---|
| Individual resident of Uzbekistan | 5% (personal income tax) | Withheld by the paying company |
| Legal entity resident in Uzbekistan | 5% (profit tax) | Withheld by the paying company |
| Non-resident (individual or company) | 10% | Withheld by the paying company |
| Non-resident from a treaty country | Treaty rate, once residence is confirmed | Withheld by the paying company |
| Non-resident founder of an IT Park resident whose exports exceed 50% of income | 5% (resident rate) until 1 January 2040 | Withheld by the IT Park resident |
Residents: 5% withheld at source
A company paying dividends to residents acts as a tax agent. It calculates tax separately for each recipient and each payment, withholds it from the dividend and remits it. For an individual this is personal income tax at 5%; for a corporate shareholder it is profit tax at 5%.
A corporate recipient whose dividend has already been taxed at source excludes it from its own profit tax base, so it is not taxed again. If the dividend comes from a foreign company, the resident recipient calculates and pays the 5% tax itself.
Non-residents: 10% and double tax treaties
Under the Tax Code, dividends paid to non-residents are taxed at 10%. Many of Uzbekistan's treaties reduce this, typically to 5%, 7%, 8% or 10% depending on the country and the size of the holding. According to PwC, for example, the treaty with Germany provides 5% and 15%, with Russia 10%, with the United Kingdom 5% and 10%, and with Singapore 5%.
To apply the treaty rate at the time of payment, the non-resident must give the tax agent a certificate of tax residence that meets the Tax Code requirements before the payment. Without it the company must withhold 10%, and the excess can only be recovered through a refund procedure. Tax on dividends paid to non-residents is remitted no later than the day after payment.
Founders of IT Park residents
IT Park residents are exempt from most taxes, but when paying dividends they remain tax agents and must withhold tax. Foreign founders benefit from a special rule: from 1 February 2025 to 1 January 2040, dividends paid to non-resident founders of IT Park residents whose exports exceed 50% of total income are taxed at the resident rates — 5% instead of 10%. If the export share is 50% or less, the foreign founder is taxed at the general 10% rate or the treaty rate. More on the regime in our article on IT Park tax benefits.
How an LLC pays dividends
1. Check that profit can be distributed
The LLC Law prohibits a decision to distribute profit:
- before the charter capital is fully paid;
- before a departing member has been paid the actual value of their share, where this is required;
- if the company shows signs of insolvency or would become insolvent as a result;
- if net assets are below the charter capital plus the reserve fund, or would fall below them as a result of the decision.
The same restrictions are checked again on the payment date: if net assets have dropped by then, the payout must be postponed until they recover. So before the meeting it is wise to close the period's accounts and calculate net assets from the balance sheet.
2. Pass a general meeting resolution
An LLC may distribute net profit quarterly, half-yearly or annually. The decision is taken by the general meeting of members, and dividends are allocated in proportion to shares in the charter capital. The minutes record the period, the amount distributed, the amount per member and the payment date.
3. Pay on time
The payment date and procedure are set by the charter or the meeting resolution, but cannot be later than 60 days from the decision.
4. Withhold tax and report
- for residents — tax is remitted no later than the dividend payment date;
- for non-residents — no later than the day after payment;
- the tax agent return is filed by the 20th of the month following the month in which dividends were accrued (paid);
- on request, the company gives the member a statement of income and tax withheld.
It helps to check these dates against our 2026 reporting calendar.
Worked example (illustrative figures)
An LLC closes the year with net profit of UZS 1,000 million; its charter capital is paid up and net assets comfortably exceed the charter capital and reserve fund. The meeting decides to distribute UZS 400 million. Members: an Uzbek citizen with 60% and a foreign company with 40%.
| Member | Accrued, UZS m | Rate | Tax, UZS m | Net payout, UZS m |
|---|---|---|---|---|
| Resident individual, 60% | 240 | 5% | 12 | 228 |
| Foreign company, 40% — general rate | 160 | 10% | 16 | 144 |
| Same company — 5% treaty rate with residence certificate | 160 | 5% | 8 | 152 |
At the general rate the company withholds and remits UZS 28 million; with the treaty applied, UZS 20 million. If the company were an IT Park resident with exports above 50%, the foreign member would also get the 5% rate.
Typical mistakes
- Paying out with insufficient net assets. The decision breaches the law, and members risk having to return the money.
- No residence certificate on the payment date. 10% is withheld, and a refund takes time.
- Tax remitted after the payout. Late-payment interest accrues, and the agent is liable for failing to withhold.
- Paying "loans" instead of dividends. An inspection may reclassify such amounts.
We check net assets, prepare the minutes and the tax agent returns as part of our tax support, and handle one-off questions about payouts to foreign members in a consultation. Reach us via contacts.
Frequently asked questions
What is the dividend tax rate in Uzbekistan in 2026?
5% for residents, both individuals and companies. For non-residents it is 10%, or lower if a double tax treaty provides for it.
Who pays dividend tax — the shareholder or the company?
The company paying the dividend, acting as tax agent: it withholds the tax from the payment and remits it. Once tax has been withheld at source, an individual shareholder usually has nothing further to pay.
How often can an LLC pay dividends?
A decision to distribute net profit can be taken quarterly, half-yearly or annually. Dividends must be paid within 60 days of the decision.
Can a company pay dividends if it has losses from prior years?
Not if net assets are below the charter capital plus reserve fund, or would fall below them after the payout. Check the balance sheet first.
What rate applies to a foreign founder of an IT Park resident?
5% if exports make up more than 50% of the company's total income; the rule applies until 1 January 2040. Otherwise 10% or the treaty rate.
Information is current as of October 2026. Tax rules change — check the current edition of the Tax Code, the treaty text and a specialist before paying dividends.