"First-time warning" rule to be introduced for entrepreneurs

The principle of "Warning for the first mistake" will be introduced for entrepreneurs.

On August 27, the Presidential Decree "On measures to implement the tasks set out in the VI open dialogue of the President of the Republic of Uzbekistan with entrepreneurs" was adopted.

According to the decree, from January 1, 2027 to December 31, 2028, as a legal experiment, a mechanism will be introduced for conducting an initiative audit by medium and large entrepreneurs on the correct calculation and payment of taxes and fees with the involvement of an audit organization and recognition of the audit conclusion by the tax authority.

This provides for the following:

* Tax audits will not be conducted by tax authorities for the period during which the audit was conducted.

* If the identified errors and shortcomings are eliminated within 30 days, financial penalties will not be applied to the business entity.

* The list of organizations that can conduct audits within the framework of this experiment is maintained by the Tax Committee and published on its official website.

* In cases where unpaid taxes and fees are identified as a result of the recognition of the audit report, the audit organization will be responsible.

* Any repeated audit of the activities of business entities within 1 year will be carried out only with the permission of the Business Ombudsman, with the exception of a cameral tax audit.

* The "Warning for the First Mistake" rule will be introduced when imposing financial penalties on business entities. Entrepreneurs who violate the rule for the first time, but have not caused harm to the life and health of citizens or the property of others, will be given 10 days to initially eliminate the deficiency without imposing a fine.