Uzbekistan bets on tax breaks and new rules to become Central Asia’s tech gateway

Uzbekistan aims to become Central Asia's technology hub by offering tax benefits and special rules for companies and investors. A new legislation, Enterprise Uzbekistan, is set to become operational in early 2027. Investors will enjoy tax exemptions on dividends and other income earned within the special regime, and companies will pay no corporate tax on profits from priority activities.

Sales within the center and exports by its participants will be subject to zero-rated VAT. Full foreign ownership is already permitted, and foreign employees will be exempt from personal income tax on eligible salaries and dividends. A regulatory sandbox will allow companies to test new technologies, potentially providing an alternative for developers of emerging technologies.

International venture capital funds are already operating in Uzbekistan, with Golden Gate Ventures opening an office in Tashkent to develop its investment activities. The new regime could encourage more international investors to establish operations in the country, thereby expanding cross-border deal flow. Bahodir Ayupov, Vice President of Global Business Development at Enterprise Uzbekistan, believes the first test will be determining whether companies see Enterprise Uzbekistan as an integral part of their expansion plans.

He also aims to see big tech companies coming to the region through Uzbekistan, using it as a base to expand into other Central Asian markets. However, officials are inviting technology companies and investors to help shape the detailed regulations governing Enterprise Uzbekistan before it begins operating. Farhod Ibragimov, CEO of Enterprise Uzbekistan, identified regulatory stability as a principal concern for international investors.

Mark Beer, Chairman of the Metis Institute, argued that the longer-term challenge will be maintaining investor confidence and remaining competitive with other international business centers.