Uzbekistan plans to cap tax penalties at the amount of the debt
Deputies have approved in the first reading a bill prohibiting the accrual of penalties for late payment of taxes in excess of the amount of the principal debt. The document also provides for the automatic lifting of account restrictions after rectifying violations identified during a desk audit.
Uzbekistan intends to limit the amount of tax penalties to the amount of the debt
In Uzbekistan, it is proposed to establish a rule under which the penalty for late payment of taxes cannot exceed the amount of the principal tax debt. This amendment is included in a bill on supporting entrepreneurs, which the Legislative Chamber of the Oliy Majlis approved in its first reading on October 27.
Presenting the document, Deputy Minister of Economy and Finance Ahadbek Khaydarov spoke about the proposed changes in tax administration.
"A rule is being introduced under which the penalty charged on the tax amount not paid on time must not exceed the amount of the unpaid tax," the deputy minister stated.
The introduction of this rule was discussed with the president in early May.
The bill also provides for the automatic cancellation by tax authorities of the suspension of operations on a taxpayer's bank accounts if they have submitted the requested explanations or updated tax reporting based on the results of a desk audit.
As reported by the Legislative Chamber, this measure is aimed at reducing administrative restrictions on business.
In addition, it is proposed to abolish the commission when paying taxes through payment organizations and payment systems.
The document also provides for expanding the possibilities of using electronic services through the taxpayer's personal account, including with the use of information systems of other state bodies and organizations.
In particular, it is proposed to clarify the procedure for registering real estate lease agreements with tax authorities at the location of the property, as well as to expand the application of accelerated VAT refunds for major taxpayers designated in accordance with the established procedure.
Following the discussion, deputies supported the bill in its first reading. Before entering into force, the document must go through further stages of the legislative process.
According to Article 110 of the Tax Code, a penalty is charged for each calendar day of delay in tax payment, starting from the day following the established payment deadline.
Its amount is 1/300 of the current refinancing rate of the Central Bank of the amount of unpaid tax for each day of delay.
For example, with a rate of 14% and a tax debt of 10 million soums, the daily penalty is about 4,667 soums. Accrued penalties are also considered tax debt and can be collected forcibly.
At the same time, the current version of the code does not contain a general provision that would limit the total penalty to the amount of the principal debt.
Notably, a similar limitation was provided for in the 2007 Tax Code. Its Article 120 established that the amount of the penalty could not exceed the debt for the relevant taxes and other mandatory payments. In the current code, adopted in 2019, this rule was not preserved.
As a reminder, a presidential decree dated August 27, 2026, also declared a "Second Chance" economic amnesty for small and medium-sized businesses. It provides for the write-off of accrued penalties upon full settlement of the corresponding tax debt by December 31, 2026, subject to the established conditions.