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    Record tax surge: Uzbekistan's internet companies pay 1.5 times more

    Record tax surge: Uzbekistan's internet companies pay 1.5 times more

    Uzbekistan's Tax Committee has reported a substantial increase in tax payments from foreign Internet companies, with a 1.5-fold rise in revenues. Over the year, these digital service providers have contributed a total of UZS 48.3 bn ($3.95 mn) in taxes, reflecting a 53.8% increase compared to the 2022 year. The overall revenue generated during this period reached UZS 440.8 bn ($36 mn).

    Photo: The top three contributors, including Alphabet (Google's parent) and Apple, account for 88.4% of tax payment
    Source: RNZ

    Meta, the parent company of Facebook, retains its position as the largest taxpayer among Internet companies in Uzbekistan. Over nine months, Meta has made tax payments amounting to UZS 18.7 bn($1,5 mn), constituting 38.7% of the total contributions.

    The parent company of Google and several other services contributed UZS 14.9 bn ($1,2 mn), and Apple, with a tax payment of UZS 9.05 bn ($700,000). Collectively, these top three companies account for a significant 88.4% of all tax payments in the sector.

    Photo: The top 10 foreign taxpayers include Booking.com, Netflix, Xsolla, Yandex, Adobe Systems, Microsoft, and Activision Blizzard
    Source: UzDaily.uz

    The top 10 foreign taxpayers in Uzbekistan's digital landscape include Booking.com (UZS 1.19 bn or $97,000), Netflix (UZS 916.7 mn or $74,000), Xsolla (UZS 613.7 mn or $50,000), Yandex (UZS 476.4 mn or $39 k), Adobe Systems (UZS 326.5 mn or $27,000), Microsoft (UZS 326 mn or $26,000), and Activision Blizzard (UZS 310.4 mn or $25,000).

    Since 2020, foreign legal entities engaged in the sale of services and digital goods within Uzbekistan's territory have been designated as taxpayers for such services offered to individuals. To facilitate this process, the Tax Committee has established a VAT office, enabling foreign Internet companies operating in Uzbekistan to register and fulfil their tax obligations. 

    Photo: Foreign legal entities were designated as taxpayers for digital services since 2020
    Source: Freepik

    In April 2022, a registration procedure was formalized, leading to the inclusion of ten additional legal entities in the registration list from May to the end of September, bringing the total number of registered entities to 52.

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    28.10.2023, 08:25   Comments (0)   1596
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