Accounting and taxes for a foreign company in Uzbekistan depend on the form of presence: an LLC with foreign investment is an ordinary Uzbek legal entity paying all taxes; an accredited representative office may not carry on commercial activity; a permanent establishment (PE) pays 15% profit tax plus 10% tax on net profit and is a VAT payer regardless of turnover. Dividends to a foreign shareholder are subject to 10% withholding tax unless a double tax treaty gives a lower rate. Below are the forms compared, currency control, reporting and profit repatriation.
Three forms of presence: which to choose
| Parameter | LLC with foreign investment | Representative office | Permanent establishment |
|---|---|---|---|
| Status | Uzbek legal entity | Separate division of the foreign company, accredited by the Ministry of Investment, Industry and Trade | Tax status of a foreign company operating through a place in Uzbekistan |
| Commercial activity | Yes | No (except airlines) | Yes |
| Profit tax | 15% | None if there is no commercial activity | 15% + 10% on net profit |
| VAT | 12% or a simplified regime if conditions are met | Usually none | VAT payer regardless of turnover |
| Profit repatriation | Dividends, 10% withholding (or treaty rate) | — | 10% net profit tax (may be reduced under a treaty) |
LLC with foreign investment
The most common option for doing business on the local market. The company is registered as a resident and follows the same rules as any Uzbek LLC: VAT 12%, profit tax 15%, personal income tax and social tax of 12% each on salaries, electronic VAT invoices and monthly reporting. If revenue is below the threshold, turnover tax may apply — see Turnover tax vs VAT and Tax changes in 2026.
Representative office
Suitable for market research, marketing and liaison with partners. Since 2024 accreditation is granted by the Ministry of Investment, Industry and Trade: the application is filed electronically, review takes 5 working days, and the certificate is issued for 1 to 3 years with the option to extend. An accredited representative office may not carry on commercial activity on its own. If it actually sells, signs contracts or provides services, the tax authority may treat the foreign company as having a PE with all the tax consequences. The office's staff are employees whose salaries are subject to personal income tax and social tax.
Permanent establishment
A PE is a fixed place through which a foreign company carries on business in Uzbekistan in full or in part. For building, installation or assembly sites, a PE arises if the work lasts more than 183 days in any consecutive 12-month period; for services, including consulting, if they are provided for at least 183 days in any consecutive 12 months. PE income is taxed at 15% profit tax, and net profit after tax is additionally taxed at 10%; since 2023 this rate may be reduced where a treaty provides a lower dividend rate. A PE registers with the tax authority and becomes a VAT payer regardless of turnover.
Currency control basics
- Domestic payments. As a general rule, payments between residents within Uzbekistan are made in the national currency. A lease or service contract in US dollars with a local counterparty is a common mistake by foreign companies.
- Foreign trade contracts. Contracts, acts and invoices with non-residents are registered in the EEISVO (E-Contract) system before operations start; without the identification number the bank will not process the payment.
- Buying currency. Since 5 September 2017 mandatory sale of exporters' foreign currency proceeds has been abolished, and companies may buy foreign currency from banks to pay for imports, repay loans and repatriate profits.
- Loans from the parent. Document a foreign loan with an agreement and account for exchange differences; interest paid to a non-resident is subject to 10% withholding unless a treaty gives a lower rate.
Reporting: Uzbek statutory and for the parent company
Tax returns and financial statements are filed in soums under national standards through the tax authority's electronic systems, in Uzbek or Russian. Deadlines are in our 2026 reporting calendar. The parent company usually needs different reporting: in English, on its chart of accounts, transformed to IFRS or group policy, with intra-group balances reconciled.
The practical approach is to keep the books once but set up the analytics so that both the Uzbek forms and the group management pack come from the same data. For companies with imports and exports WealthWise offers the Business + Foreign Trade plan (from UZS 9,890,000 a month), and accounting outsourcing under the general regime with VAT and profit tax is the Business plan (from UZS 7,890,000).
Profit repatriation and double tax treaties
- Distribution decision is taken by the LLC's participants based on approved financial statements.
- Withholding tax. Dividends paid to a non-resident are subject to 10% withholding tax (5% for residents).
- Treaty relief. Uzbekistan applies double tax treaties with 55 countries. To withhold at a reduced rate or not at all, the recipient must provide, before payment, a duly formalised certificate of tax residence issued by the competent authority of its country.
- Transfer. The company buys foreign currency at the bank and transfers the dividends to the shareholder's account; the bank may request the distribution and tax payment documents.
Royalties and management or consulting services paid to a non-resident without a PE are subject to 20% withholding tax unless a treaty provides otherwise. This matters for intra-group payments: a parent charging a management fee should know in advance who withholds what.
A foreign director: practical issues
- Digital signature and portal access. Returns, VAT invoices and bank payments are signed with an electronic digital signature. Decide in advance who holds it and how documents are signed when the director is abroad.
- Powers of attorney. Issue powers of attorney to a local representative for the bank, the tax authority and counterparties, with clearly defined authority.
- Employment status. A foreign director working in Uzbekistan is an employee of the company: employment contract, registration in the Unified National Labour System, personal income tax and social tax.
- Liability. The director is responsible for timely filing and tax payments even if an external provider keeps the books.
WealthWise keeps the books of foreign-owned companies, replies within 30 minutes during working hours and adds tax advisory for PE, dividend and treaty questions. To discuss your structure, reach us via contacts.
Frequently asked questions
Can a representative office of a foreign company sell goods or services?
No. An accredited representative office may not carry on commercial activity on its own (airlines are an exception). Actual sales create a risk that a permanent establishment is recognised.
What is the tax rate on dividends paid to a foreign shareholder?
10% withheld at source. A double tax treaty may reduce the rate if a certificate of residence is provided. Dividends paid to residents are taxed at 5%.
When does a foreign company have a permanent establishment?
When it operates through a fixed place in Uzbekistan, and also when it provides services for at least 183 days or carries out construction work for more than 183 days in any 12-month period.
Does a PE need to register for VAT?
Yes, permanent establishments of foreign companies are VAT payers regardless of turnover.
Can we pay a local landlord in US dollars?
As a general rule, payments between residents within the country are made in soums, so the contract should be in the national currency. Exceptions are listed in the currency legislation.
This information is current for 2026. Tax and currency rules and treaty terms change, so check the current rules or consult a specialist before making a decision.