Designed by Freepik
Recently, discussions about Kazakh businesses relocating to Uzbekistan and Kyrgyzstan have become more frequent. Some consider this an exaggeration, while others point to the real growth of foreign companies in Tashkent. Where does the truth lie?
Let's examine the facts.
Let's examine the facts.
What's Happening
Since the beginning of 2026, the tax burden on businesses in Kazakhstan has noticeably increased. The VAT rate rose from 12% to 16%, and the mandatory registration threshold was lowered from 20,000 to 10,000 MCI (Monthly Calculation Index). For companies that previously didn't have to deal with this tax, it has now become a significant expense.
The situation in Uzbekistan is different. VAT remains at 12%, thresholds are unchanged, and for sole proprietors with an annual turnover up to 1 billion UZS, the tax rate has been reduced to 1%. This isn't a temporary measure but a consistent policy by the government.
Statistics confirm this trend: the number of enterprises with foreign participation in Uzbekistan has grown by nearly 30% in recent years, exceeding 17,000. This growth isn't limited to Chinese and Russian businesses — there are now over 1,200 Kazakh companies, and their numbers continue to rise.
The situation in Uzbekistan is different. VAT remains at 12%, thresholds are unchanged, and for sole proprietors with an annual turnover up to 1 billion UZS, the tax rate has been reduced to 1%. This isn't a temporary measure but a consistent policy by the government.
Statistics confirm this trend: the number of enterprises with foreign participation in Uzbekistan has grown by nearly 30% in recent years, exceeding 17,000. This growth isn't limited to Chinese and Russian businesses — there are now over 1,200 Kazakh companies, and their numbers continue to rise.
Why This Matters
The tax reform in Kazakhstan is likely not the last. The trend toward increasing fiscal pressure is clear. Meanwhile, the neighboring market isn't just maintaining attractive conditions; it's systematically improving them.
However, there's a crucial nuance rarely discussed openly. Simply registering a company in Uzbekistan and doing it properly are two different things. Without understanding local activity codes, currency control rules, reporting specifics, and especially IT Park residency conditions (if you're in tech), you might not reduce your taxes — you could face new complications instead.
We support businesses entering the Uzbekistan market from the very first step:
Leave a request on the Techcount website — we'll prepare an individual calculation and a roadmap for opening your business in Uzbekistan, tailored specifically to your situation.
However, there's a crucial nuance rarely discussed openly. Simply registering a company in Uzbekistan and doing it properly are two different things. Without understanding local activity codes, currency control rules, reporting specifics, and especially IT Park residency conditions (if you're in tech), you might not reduce your taxes — you could face new complications instead.
We support businesses entering the Uzbekistan market from the very first step:
- We audit your current structure to determine whether opening a legal entity is necessary or if a partnership model would suffice.
- We register your company according to your profile, avoiding unnecessary codes and paperwork errors.
- We assist with IT Park entry if you're an IT company, ensuring benefits are obtained legally and without overpayment.
- We handle accounting and tax support so you can focus on your business, not paperwork.
Leave a request on the Techcount website — we'll prepare an individual calculation and a roadmap for opening your business in Uzbekistan, tailored specifically to your situation.