Uzbekistan has increased the minimum voluntary social tax payment for self-employed individuals as part of broader legislative changes aimed at reducing red tape for entrepreneurs, following a law signed by the president.
Under amendments to the Law on Employment, self-employed individuals may now voluntarily pay social tax of at least one basic calculation amount (BHM)—currently UZS 412,000 (about $33)—in order for the payment to count toward their work record and future pension. Previously, the minimum threshold was set at 50% of BHM, or UZS 206,000 (around $16.5).
Authorities clarified that social tax paid by self-employed individuals is fully transferred to the extra-budgetary Pension Fund under the Ministry of Economy and Finance and is used to calculate pension entitlements in line with the rules applied to sole proprietors. The change is intended to strengthen social protection mechanisms while formalising labour records.
The law also introduces measures to ease administrative procedures for businesses. State forestry authorities are now allowed to lease unused forest fund land to individuals and companies through electronic online auctions, granting lease rights digitally and reducing in-person bureaucracy.
In addition, amendments to the Economic Procedural Code set clearer limits on the suspension of business licenses and permits. For certain types of activity, licenses may now be suspended for more than 10 days but no longer than six months. Previously, the law specified only that suspensions could exceed 10 working days, without defining a maximum duration.
Moreover, Uzbekistan is expanding access to unsecured financing for self-employed individuals and family businesses. Under updated family entrepreneurship programmes, no-collateral loans of up to UZS 50mn ($4,000) will be available for self-employed residents starting businesses at the mahalla level.
Higher limits apply in specialised areas, including up to UZS 100mn ($8,000) for certified livestock and camel farming, and up to UZS 150mn ($12,000) for home-stay tourism projects and small-scale food storage and processing. Authorities have also scrapped advance delivery requirements and will subsidise part of loan interest rates from March 1, 2026, covering 4 percentage points for production projects and 6 points for value-added processing.
The changes come amid broader tax reforms for small businesses. Amendments to Article 462 of the Tax Code, adopted in December 2025, introduced a proportional method for determining VAT and profit tax liability for newly registered sole proprietors and self-employed individuals. Economist Islombek Niyozmetov has criticised the approach, warning it could increase pressure on small operators. As of January 1, 2026, Uzbekistan had 284,400 sole proprietors, while 5.5mn people were registered as self-employed by mid-2025.
