Uzbekistan has presented a draft to introduce mandatory social tax payments for self-employed individuals starting from January 1, 2027, and also provides for the cancellation of existing social tax benefits for organizations and enterprises from 2030.
These measures are outlined in a draft presidential decree concerning pension system reform, which was published by the Ministry of Economy and Finance on September 15. Public discussions on this document will continue until September 30.
Details of the tax introduction for the self-employed
According to the draft, self-employed citizens will have to pay a social tax amounting to one basic calculation unit, which is 440,000 UZS, starting from September 2026. They will be allowed to repay this amount in installments over the year, with a monthly payment of 36,600 UZS.
Currently, the payment of social tax by the self-employed is voluntary and is taken into account when calculating work experience. The proposed changes aim to ensure that the self-employed have access to state social insurance and pension provision.
It is proposed that 10% of the social tax paid by the self-employed will be directed to the State Social Insurance Fund. Payments for maternity and temporary disability benefits will be made from the funds of this fund according to established procedures.
Changes in budgetary financing and operation
Starting from 2027, it is also proposed that the state budget covers expenses for periods counted as work experience but for which social tax and contributions to the Pension Fund were not paid. The budget will be used to increase pensions up to the minimum level, as well as to pay pension benefits and additional pension payments.
For older workers, the project provides for a reduction in working hours while maintaining the average salary level. This measure is aimed at women over 55 years old and men over 60 years old.
When distributing financial assistance to low-income families, the presence of official income will not be considered for women over 55 and men over 60 years old.
Abolition of benefits for businesses
Furthermore, starting from January 1, 2030, the draft provides for the abolition of existing social tax benefits for enterprises and organizations, with the tax rate set at 12%. It is planned that no new benefits for this tax will be introduced.