1% single tax for sole proprietors: new rules of application in Uzbekistan

Starting in 2026, Uzbekistan is expanding the application of a simplified regime for individual entrepreneurs — a single tax of 1% of turnover. This decision is aimed at simplifying accounting and reducing the administrative burden.

The essence of the regime is simple: the tax is calculated not from profits, but from all revenue. All receipts are included in the calculation — through the bank, online KKM and other confirmed sources of income. Expenses are not taken into account, which is important when choosing a mode.

Sole proprietors who meet the established turnover limits and conduct permitted activities can apply the 1% rate. If the limit is exceeded, the entrepreneur automatically switches to the general taxation regime.

For businesses, this means that the tax becomes as transparent and predictable as possible — always 1% of income. This approach is especially beneficial for areas with high margins: services, IT, online sales, consulting activities.

But with high costs or low margins, the regime may be unprofitable, since the tax is charged on the entire turnover, not on profit.

The practical point is that the correct accounting of revenue is now of key importance. Any unaccounted-for receipts are easily identified through tax systems, especially given the integration of online KKM and banking operations.

Before switching to a single 1% tax, it is recommended to calculate the burden in advance and compare it with the current system. An error at this stage may lead to an overpayment of taxes.

As a result, the new regime is a convenient tool for small businesses, but it must be applied consciously, taking into account the real economy of the business, and not just because of a simple rate.