Tax Committee develops new system to track personal incomes, including foreign earnings

The Tax Committee is working on establishing a unified database and IT system to fully track individuals’ incomes, including earnings from foreign sources. This was announced by Mubin Mirzaev, First Deputy Chairman of the Tax Committee, during a press conference at the Agency for Information and Mass Communications (AIMC) on April 1, as reported by Gazeta.uz.

According to Mirzaev, the Taxation Department for Individuals has already begun segmenting taxpayers.

"Uzbekistan has a population of nearly 38 million, and over 18 million people are required to pay personal income tax. We aim to segment this group. We have developed special measures for collecting taxes from high-income individuals. I believe we can fully compile their database," he stated.

Mirzaev emphasized that a system is being created to eliminate opportunities for income underreporting, concealment, or modification.

"We estimate that improving the IT system will take approximately one year," he clarified.

Additionally, the system will account for the procedure to avoid double taxation on foreign income.

"If an Uzbekistani resident earns income abroad, they are required to pay taxes in Uzbekistan. If they are classified as a non-resident and have already paid taxes in another country, we will consider that. In other words, we are establishing a comprehensive taxation system for individuals within the framework of existing legislation," Mirzaev explained.

In an interview with Gazeta.uz, he specified that according to Article 393 of the Tax Code, individuals must submit a declaration of their income to the tax authorities before paying the required taxes.

However, Mirzaev noted that many individuals, including artists, either fail to submit declarations or do not fully disclose all sources of income. In such cases, tax authorities have the right to calculate and collect additional taxes based on available data.

"All information regarding individuals’ incomes will be compiled in the Tax Committee’s database. Based on this data, taxes will be assessed and collected on previously undeclared income. This process will take at least one year," he stated.

Strengthening the mandatory declaration system, according to the Tax Committee representative, will initially focus on government employees and individuals earning additional income beyond their primary salaries.

Earlier, it was announced that starting from January 1, 2027, Uzbekistan will tighten the income declaration and taxation system for artists. Until then, they will have the opportunity to submit their declarations correctly without facing penalties.