Fixed assets in Uzbekistan are accounted for under two sets of rules. For accounting, NSBU No. 5 "Fixed assets" (new edition from 1 January 2025) applies: fixed assets are tangible assets used for more than a year, and the company sets its own value criterion in its accounting policy. For tax, a fixed asset is property worth more than 50 BRV per unit (over UZS 22 million from 1 September 2026) used for more than 12 months, and depreciation is straight-line at rates no higher than the maximums in Article 306 of the Tax Code, from 5% for buildings to 40% for computers. Below: recognition rules, methods, rates, revaluation, disposal and a worked example.
Fixed asset depreciation in Uzbekistan: two sets of books
| Question | Accounting (NSBU No. 5) | Tax (Tax Code Art. 306) |
|---|---|---|
| What is a fixed asset | A tangible asset used for more than a year in production, work, services, administration or for leasing out | Owned property worth more than 50 BRV per unit (set) at the recognition date and used for more than 12 months |
| Value threshold | None in the standard; the director sets criteria in the accounting policy | Over 50 BRV; at a BRV of UZS 440,000 this is over UZS 22,000,000 |
| Methods | Straight-line; units of production; double-declining balance; sum-of-the-years' digits | Straight-line at rates no higher than the maximums |
| Start of depreciation | From the date the asset is accepted and put into operation (NSBU No. 5, para 33) | From the date the asset is put into use, regardless of state registration |
| Frequency | Per accounting policy | Monthly, separately for each asset |
Article 17 of the Law on Accounting provides for depreciation from the month after the asset is put into operation, while NSBU No. 5 refers to the commissioning date. Set your approach explicitly in the accounting policy and apply it consistently.
From 1 January 2027 Uzbekistan begins moving from NSBU to national financial reporting standards (NSFO): NSFO No. 1 replaces NSBU No. 1, and a separate NSFO for fixed assets is being prepared but has not yet been approved. Until it is adopted, NSBU No. 5 continues to apply. Our article on accounting policy explains what changes.
Recognition and initial cost
A fixed asset is recorded at initial cost: the purchase price or construction costs plus non-recoverable taxes and duties paid, delivery, assembly, installation and commissioning — everything needed to bring the asset into working condition. Components with different useful lives within one asset are recorded as separate inventory items. After recognition the company chooses a model, cost or revaluation, and states it in the accounting policy.
For VAT payers: VAT charged on purchases of fixed assets, intangible assets and real estate is credited in full (Tax Code Art. 266). More in our VAT guide.
What is not depreciated
- land plots and natural resource objects;
- productive livestock;
- library collections;
- fixed assets placed in conservation in the prescribed manner (for accounting);
- public roads and amenities managed by local authorities.
For tax, assets whose cost has already been fully expensed and capital investments not transferred to depreciable assets are also not depreciated, among others.
Tax depreciation rates by group
Maximum annual rates are set by Article 306 of the Tax Code. Taxpayers may apply lower rates.
| Group | Assets | Rate, % per year |
|---|---|---|
| I.1 | Buildings | 5 |
| I.2 | Structures | 10 |
| II | Pipelines, power transmission and telecom lines | 15 |
| III | Machinery and equipment (excluding transport equipment) | 20 |
| IV.1 | Aircraft and spacecraft, ships and boats, locomotives, rolling stock | 10 |
| IV.2 | Motor vehicles, bodies, trailers and semi-trailers, other transport equipment | 20 |
| V | Computers and peripheral equipment | 40 |
| VI | Depreciable assets not included in other groups | 15 |
Worked example
Illustrative example: a company under the general tax regime buys a delivery van for UZS 240,000,000 excluding VAT and puts it into use. Its accounting policy sets a useful life of 6 years, the straight-line method and a zero residual value. The figures are for illustration only.
| Item | Calculation | Amount, UZS |
|---|---|---|
| Annual accounting depreciation | 240,000,000 / 6 | 40,000,000 |
| Monthly accounting depreciation | 40,000,000 / 12 | 3,333,333 |
| Annual tax depreciation (group IV.2, 20%) | 240,000,000 × 20% | 48,000,000 |
| Monthly tax depreciation | 48,000,000 / 12 | 4,000,000 |
| Annual difference | 48,000,000 − 40,000,000 | 8,000,000 |
| Annual effect on profit tax (15%) | 8,000,000 × 15% | 1,200,000 |
For tax the van is written off over 5 years, for accounting over 6. This is a temporary difference: tax is lower in the early years and higher in the last one. If you would rather not keep two schedules, you can use a tax rate below the maximum that equals the accounting rate.
Revaluation and disposal
Revaluation
If fair value can be measured reliably, a company may carry fixed assets at revalued amounts. The method is set in the accounting policy and applied to all groups of fixed assets; frequency depends on how much fair value changes. Increases go to the "Adjustments on revaluation of long-term assets" account within reserve capital; decreases reduce any earlier increase for the same asset. Revaluation does not change tax depreciation, which is based on initial cost.
Disposal
Fixed assets are derecognised on sale, liquidation, free transfer, exchange, contribution to charter capital, transfer under a finance lease, discovery of a shortage and in other cases. For liquidation, a commission chaired by the director (deputy) or chief engineer is formed and draws up an act on the form annexed to NSBU No. 5. The asset may not be dismantled before the act is approved. For a VAT payer, the sale of a fixed asset is a taxable supply that requires an e-invoice with the purpose "sale of fixed assets". The existence of fixed assets is confirmed by a stocktake at least once every two years; see our article on stocktaking.
Common mistakes
- No value criterion in the accounting policy, so small equipment ends up in fixed assets (or the reverse).
- Tax depreciation above the maximum rate or using an accelerated method.
- Ignoring BRV increases: the 50 BRV threshold is measured at the asset's recognition date.
- Delivery and installation costs expensed immediately instead of being capitalised.
- Revaluing a single asset selectively instead of the whole group.
Help with fixed asset accounting
As part of our bookkeeping services, WealthWise keeps the fixed asset register, calculates accounting and tax depreciation and the differences between them, and reflects them in the annual statements through our financial statements preparation service. You can discuss your accounting policy via contacts.
Frequently asked questions
From what value is property treated as a fixed asset?
For tax, above 50 BRV per unit at the recognition date (over UZS 22,000,000 from 1 September 2026) with a useful life of more than 12 months. For accounting, the standard sets no threshold; it is fixed in the accounting policy.
Which depreciation methods are allowed?
Under NSBU No. 5: straight-line, units of production, double-declining balance and sum-of-the-years' digits. For tax: straight-line at rates no higher than the maximums.
Can tax depreciation be slower?
Yes. The Tax Code allows rates below the maximum, for example equal to the accounting rates.
What is the depreciation rate for computers?
For tax, the maximum rate for computers and peripheral equipment is 40% per year (group V, Article 306 of the Tax Code).
Is revaluation of fixed assets mandatory?
No, it is a choice of accounting model. A company that chooses the revaluation model applies it to all groups of fixed assets and revalues when fair value changes significantly.
This information is current as of October 2026. Depreciation rates, the BRV and accounting standards may change, so check the current editions or consult a specialist.