Tax penalties and late-payment interest in Uzbekistan are two different tools. Late-payment interest (penya) accrues automatically for each day a tax payment is late, at 1/300 of the Central Bank refinancing rate. A fine (financial sanction) is a penalty for a specific violation: for example, 20% of unpaid tax, at least UZS 5 million for trading without mandatory VAT registration, or fixed amounts for cash register violations. Many sanctions can be halved or avoided altogether if you correct the error yourself in time.
Below: how late-payment interest is calculated, which fines the Tax Code provides for, how to reduce sanctions and how to appeal a tax authority decision.
How late-payment interest is calculated
Late-payment interest is the amount a taxpayer pays for missing a tax payment deadline. The rules:
- it accrues for each calendar day of delay, starting from the day after the payment deadline;
- the rate is 1/300 of the Central Bank refinancing rate in effect during the delay, applied to the unpaid tax;
- it is paid on top of the tax itself and regardless of any fines;
- applying for a deferral or instalment plan does not stop it;
- it does not accrue where payment was impossible because the tax authority froze the bank account or seized funds, or on debt arising from following the tax authority's written guidance.
Example (illustrative calculation)
A company pays UZS 100 million of VAT 30 days late. Throughout 2026 the Central Bank's policy rate stayed at 14% a year. Daily interest: 100 million × 14% / 300 = about UZS 46,667. For 30 days, about UZS 1.4 million. Not a disaster, but over a year of delay the interest exceeds UZS 17 million, and a fine is almost always added.
Interest is also charged if property tax or land tax advances are understated by more than 10% — see our articles on property tax and land tax.
Main tax fines in 2026
| Violation | Sanction under the Tax Code |
|---|---|
| Non-payment or underpayment of tax (calculation errors, etc.) | 20% of the unpaid amount (Art. 224) |
| Concealing (understating) the tax base | 20% of the concealed base, plus tax on it (Art. 223) |
| Wrong product identification codes on e-invoices or receipts | 1% of the value of goods sold (Art. 223) |
| Trading without mandatory VAT registration | 5% of income for the period, but at least UZS 5 million (Art. 219) |
| Late registration of a taxable object | UZS 1 million (up to 30 days), UZS 2 million (over 30 days) (Art. 219) |
| Trading without a mandatory cash register, terminal or QR code, or without issuing a receipt | UZS 5 million (Art. 221) |
| Using an unregistered cash register | UZS 7 million (Art. 221) |
| Using someone else's terminal or QR code; a non-compliant cash register | UZS 20 million (Art. 221) |
| Showing VAT on an invoice when not a VAT payer or for an exempt supply | 20% of the VAT shown, and the VAT itself must be paid (Art. 225) |
| Late filing of returns | Administrative liability of the responsible officer (Art. 220) |
Notes on the key violations
Late filing. The Tax Code does not impose a financial sanction on the company for this; instead the responsible officer (usually the director or chief accountant) faces administrative liability under the administrative offences legislation. If the tax is paid late as a result, interest accrues on it.
No VAT registration. The fine is calculated on all income for the period when the company should have been, but was not, a VAT payer, so it can be very large. From 2026, businesses switching from turnover tax for the first time are not fined if they register within one year of the obligation arising. How to monitor the threshold is covered in our VAT guide.
Cash registers and e-invoices. Cash register fines are fixed and apply to each violation found. A separate risk is incorrect product codes (IKPU) on invoices and receipts: a fine of 1% of sales value can quickly exceed the fixed amounts.
How to reduce or avoid sanctions
Correcting the error yourself
If an amended return is filed after the payment deadline, the company is released from liability if two conditions are met: the return was filed before the company learned that the tax authority had found the error or scheduled an audit, and the tax shortfall and interest were paid before filing. You still pay the interest, but there is no fine.
Small business regime until 2028
Decree UP-100 allows small businesses, until 1 January 2028, to correct on their own any signs of violations flagged by the automated risk system. A tax audit is not ordered where the risk amount is up to UZS 500 million, and an on-site inspection where it is up to UZS 100 million.
Risk notices from July 2026
Under Decree UP-95, from 1 July 2026 medium-risk taxpayers receive a notice of the risks identified; if the issues are fixed within one month, no inspection is carried out. The obligation to file amended returns for discrepancies found in pre-audit analysis has been abolished. More in our overview of tax administration changes from July 2026.
Halving the fine
- where there is at least one mitigating circumstance (serious personal circumstances, coercion, or other circumstances recognised by a court or the tax authority);
- where the company admits the violation and voluntarily pays the fine within 10 days of receiving the decision.
The flip side: a repeat violation of the same kind within a year doubles the fine.
Limitation period
Liability for a tax offence can only be imposed within 3 years. For non-payment and concealment of the base, the period runs from the day after the end of the tax period; for other violations, from the day they were committed.
How to appeal a decision
- Review the report and the decision. Check the calculations, periods and grounds, and gather primary documents.
- File a complaint with the higher tax authority through the body that issued the decision. For on-site inspections and audits, this must be done within 1 month of the date the company learned its rights were violated; a deadline missed for a valid reason can be restored.
- Enforcement is suspended. While the complaint is under review the decision is not enforced, including collection of additional tax and fines.
- Go to court if the higher authority does not uphold the complaint. Decisions of the Tax Committee are appealed in court.
How to handle an inspection and which documents to prepare is covered in our articles on preparing for a tax inspection and remote tax audits.
How to avoid interest and fines: a short checklist
- keep a payment calendar and check proactive returns within the first 5 days;
- track turnover against the VAT threshold;
- check product codes on invoices and receipts;
- fix errors yourself before the tax authority finds them, and pay the shortfall with interest straight away;
- respond to risk notices within a month.
We support clients through inspections and prepare objections as part of our tax audit support, and we monitor risks on an ongoing basis through tax support. One-off inspection support starts from 3,900,000 UZS (included in the Corporate plan), with the exact price set after we review the situation: write to us via contacts.
Frequently asked questions
How is late-payment interest on taxes calculated in Uzbekistan?
For each day of delay at 1/300 of the Central Bank refinancing rate on the unpaid amount, starting from the day after the deadline. At a 14% rate that is about 0.047% a day.
What is the fine for not paying tax?
20% of the unpaid amount where there are no signs of concealment. If the base was concealed, 20% of the concealed base, and the tax is reassessed. Interest is charged on top.
Can I avoid a fine by correcting the error myself?
Yes, if the amended return is filed before the tax authority finds the error or schedules an audit, and the shortfall and interest are paid before filing.
What is the fine for trading without a cash register?
UZS 5 million for trading without a mandatory cash register or without issuing a receipt, UZS 7 million for an unregistered register, and UZS 20 million for using someone else's terminal or QR code.
How long do I have to appeal inspection results?
One month from the date the company learned, or should have learned, that its rights were violated. The complaint goes to the higher tax authority through the body that issued the decision.
Information is current as of October 2026. Sanction amounts and administrative procedures change — check the current edition of the Tax Code and consult a specialist before making decisions.