Tashkent, Uzbekistan (UzDaily.com) — On 26 June, President of Uzbekistan Shavkat Mirziyoyev signed a law aimed at simplifying and enhancing the flexibility of tax administration.

According to the newly adopted amendments to the Tax Code, taxpayers will now be able to allocate overpaid tax amounts not only toward future payments of the same tax, as previously allowed, but also to cover other tax obligations. Provided there are no outstanding debts, a written or electronic application is sufficient to initiate the reallocation. The offsetting procedure must now be completed within three working days—down from the previous period of up to 15 days. This innovation is expected to help businesses avoid delays in fund reimbursement and free up working capital for ongoing operations.

As part of broader digitalization efforts, the law also expands methods for confirming tax documents. In addition to the electronic digital signature (EDS), biometric identification tools such as Face-ID and fingerprints can now be used. This will be enabled through the implementation of the Mobile-ID system, allowing documents to be authenticated via mobile applications and eliminating the need to obtain an EDS, which previously incurred a fee: 10% of the base estimated value (BEV) for legal entities and 7% for individuals.

The law also introduces socially-oriented measures. Notably, individuals who participated in the cleanup of the Chernobyl nuclear disaster are now exempt from personal income tax. These individuals had already been exempt from land tax, and in 2024, over 1,400 people benefited from this relief, amounting to more than 672 million soums.

Additionally, an automated system will now generate reports on the use of water resources in the agricultural and aquaculture sectors. Based on data from the "Suv hisobi" information system and relevant water management agencies, the tax authorities will automatically compile reporting documents. This is expected to reduce errors in calculations and simplify oversight.

The law also introduces temporary tax benefits. The directorates of leather and footwear industrial zones in the Sharof-Rashidov district of Jizzakh region and the Akhangaran district of Tashkent region, along with the enterprises operating within these zones, are exempt from property tax, land tax, and water use tax. These exemptions will be in effect for one year—from 1 January 2025 to 1 January 2026.