Uzbekistan is launching a comprehensive reform aimed at creating favorable, transparent, and competitive conditions for sole entrepreneurs and self-employed individuals. The initiative is designed to significantly reduce the share of the shadow economy, broaden the tax base, and increase the attractiveness of conducting business activities within the formal sector.
Strategic Objectives and Key Priorities
The primary objectives of the reform include establishing a transparent entrepreneurial environment and encouraging individuals to voluntarily operate within the official economy. A central focus is placed on eliminating redundant administrative procedures and introducing integrated digital platforms that consolidate essential services from business registration to tax reporting and cashless payment acceptance.
Special Digital Legal Regime Until 2030
A special legal regime will be in effect until December 31, 2030, under which sole entrepreneurs and self-employed persons will be able to access government and financial services entirely online through digital platforms operated by payment organizations.
These platforms will provide a full range of functions, including registration and suspension of business activities, automated calculation and payment of taxes, automatic preparation of tax declarations based on income data, real-time fiscalization of transactions, opening and managing bank accounts, settlement of payments for goods and services, peer-to-peer transfers, and automated submission of tax and other mandatory reports.
Fiscal receipts will be generated and issued digitally through these platforms for transactions with consumers.
Remote Registration and Digital Documentation
Starting from November 1, 2025, sole entrepreneurs and self-employed individuals will be able to complete state registration via digital platforms using remote biometric identification and SMS verification.
Contracts, payment instructions, electronic invoices, and acts of acceptance for completed work may be signed on digital platforms using biometric authentication and SMS confirmation without the use of an electronic digital signature. Documents executed in this manner will have the same legal validity as paper-based documents.
Electronic Wallets and Payment Infrastructure
The special regime introduces electronic wallets that support opening and maintenance, acceptance and transfer of cash and non-cash funds, generation of payment details and QR codes, and acceptance of payments through contactless “tap to pay” technology.
An electronic wallet opened on a digital platform will be legally equivalent to a bank account and may be used for receiving income, settling payments with employees, counterparties, and government bodies, as well as paying taxes and mandatory fees. Opening a separate bank account will remain optional.
Same-Day Wage Payment Mechanism
To enhance labor market flexibility, an experimental same-day wage payment mechanism will be introduced. Its application requires an electronic employment contract, an electronic wallet held by the employee, and strict compliance with tax obligations.
Participation in this mechanism is voluntary and does not exempt employers from other requirements of labor legislation. Digital platform operators will provide payment instruments and ensure integration with government information systems.
Taxation Changes Effective from 2026
From January 1, 2026, the fixed personal income tax regime for sole entrepreneurs will be abolished, as well as the turnover tax exemption previously available to self-employed individuals with annual revenue below 100 million UZS.
A unified turnover tax rate of 1 percent will apply to sole entrepreneurs and self-employed persons whose annual turnover does not exceed 1 billion UZS. Within the special regime, payment organizations will bear responsibility for the accurate preparation of tax reports and the timely payment of taxes. For income exceeding this threshold or transactions conducted outside digital platforms, the general taxation rules under the Tax Code will remain applicable.
Mandatory QR Codes and Credit Access
Starting in 2026, retail trade rules will require sole entrepreneurs and self-employed individuals to display a special QR code generated by digital platforms for accepting electronic payments. The absence of such a QR code will be treated as failure to use cash register equipment or payment terminals.
Additionally, transaction data generated through digital platforms will be transmitted to credit bureaus, facilitating improved access to financing and loans for entrepreneurs.
Implementation and Oversight
Government bodies will ensure the seamless provision of required data to digital platform operators via the Electronic Government interagency integration system. By the end of 2025, full integration of registries for sole entrepreneurs and self-employed individuals will be completed, enabling remote registration capabilities.
The Central Bank will coordinate the participation of commercial banks in the issuance and management of electronic money, ensuring compliance with national legislation, data protection standards, and integration with the national payment infrastructure. Oversight of the implementation of this legal framework will be carried out by the relevant state authorities.