Payroll taxes in Uzbekistan 2026: PIT, social tax, INPS
Uzbekistan payroll taxes 2026: flat 12% personal income tax, 12% social tax, 0.1% INPS, withholdings, non-resident rates and the real cost of payroll.
Last updated 2026-06-15
Yaroslav Kolesov
Partner, Accounting & Tax practice
DipIFR, CPA Uz, ACCA Affiliate · chief accountant, 15+ years in international companies
Last updated 2026-06-15 · 10 min read · ✓ Facts verified against primary sources (lex.uz, soliq.uz)
Payroll taxes in Uzbekistan in 2026 are a flat 12% personal income tax withheld from the salary, a 12% social tax the employer pays on top of the payroll fund, and a 0.1% INPS funded contribution. An employee's salary is more than what lands in their account: around the base pay revolve these three payments, and each works by its own rules — some is withheld from the employee's pay, some the employer pays on top. Let's break Uzbekistan's 2026 payroll taxes down element by element — rates, withholdings, the specifics for non-residents, and the real cost of your payroll fund.
What payroll taxes apply in Uzbekistan?
Before counting, it helps to grasp the logic: one gross amount triggers several payments, but they flow in different directions. PIT and INPS are withholdings from the employee's pay: they reduce take-home pay. Social tax is an employer cost on top of salary: it is not deducted from pay but increases the cost of hiring. Below is a visual breakdown using a 10,000,000 sum salary as an example.
What a salary is made of
Example: a 10,000,000 sum monthly salary
- 12%1,200,000 sum
Personal income tax
withheld from gross salary
- 0.1%10,000 sum
of which to INPS
0.1% goes to the savings account out of the PIT amount
- —8,800,000 sum
Take-home (net)
what the employee keeps after PIT
- 12%1,200,000 sum
Social tax
charged on top of the payroll fund
This breakdown clears up the main confusion at once. People often think "payroll taxes" are one big number paid by one party. In reality the 12% PIT and 0.1% INPS reduce what the employee receives, while the 12% social tax increases what the company spends. That is why they must be counted separately — otherwise it is easy to misjudge your headcount budget.
PIT: a flat 12% rate
A defining feature of the Uzbek system is a flat (single) PIT rate. All employment income of a resident individual is taxed at 12% regardless of size: no progression, no higher rates for high salaries. This makes the calculation predictable and simple.
A separate rate applies to passive income: dividends and interest are taxed at 5% PIT. This matters for business owners who take profit out as dividends: distributed profit is taxed at 5%, not 12%. The tax agent (the employer or the company paying the income) withholds PIT on payment and remits it to the budget — in a typical case the employee does not file a return themselves.
The tax agent withholds PIT for you
In most cases the employee does not pay PIT themselves: the employer withholds and remits it as a tax agent on each salary payment. This removes the duty to calculate and declare the tax at the main place of work.
Social tax: 12% on top of the payroll fund
Social tax is an employer payment, and that is its key difference from PIT. It is charged on the payroll fund and paid on top of salary, not withheld from it. For most employers the rate is 12%, for budget organizations it is 25%.
It is social tax that forms the main "mark-up" on the cost of hiring. If an employee's salary is 10,000,000 sum, the company pays another 1,200,000 sum as social tax — money the employee never sees but which is part of the real headcount cost. So when budgeting for a team, plan around salaries plus 12%, not the salaries alone.
We'll calculate the real cost of hiring for your teamINPS: the 0.1% funded contribution
INPS is the individual funded pension account. The mandatory contribution is 0.1% of gross salary and is credited to the employee's personal pension account. The nuance often missed: INPS does not add to the tax burden, because that 0.1% goes to the employee's account out of the already-withheld PIT, not on top of it. In other words, a small part of the 12% PIT goes not to the budget but to the employee's personal pension savings.
In practice this means INPS adds no separate cost for the employer: you withhold 12% PIT, and within that amount 0.1% automatically goes to the employee's INPS. For the employee it is, in effect, a mandatory part of their future pension, formed without extra deductions from pay.
INPS is part of PIT, not an extra tax
A common mistake is to treat INPS as an extra burden on top of PIT. In fact the 0.1% is part of the withheld PIT and goes to the employee's funded account. There is no double withholding.
Withholdings and burden: who pays what
To lay it all out cleanly, let's compare two flows: what is withheld from the employee's pay and what falls on the employer.
Withheld from the employee's pay
from salaryPIT 12% (including the 0.1% INPS, which goes to the employee's own account). These amounts reduce take-home pay.
Paid by the employer on top of salary
on topSocial tax of 12% on the payroll fund. A company cost that is invisible on the employee's payslip but part of the cost of hire.
PIT — 12%
Flat rate on a resident's employment income; withheld from pay by the tax agent.
Social tax — 12%
Employer payment on top of the payroll fund; 25% for budget organizations.
INPS — 0.1%
Funded contribution to the employee's account out of PIT; adds no extra burden.
Payroll taxes for non-residents
If your company employs foreigners, the rules change. Non-resident income is taxed at the source of payment, and the rate depends on the type of income (art. 382 of the Tax Code). Salary under employment and civil-law contracts is taxed at 12% — the same as for residents, but applied to income without tax reliefs.
Salary under employment and civil-law contracts
non-resident income at source
Freight and international transport income
transport and related services
Interest and dividends
non-resident passive income
An important detail on social payments: the employer charges social tax on a foreigner's salary regardless of their tax status — so the 12% on top of payroll is paid for non-residents too. INPS, however, is generally not withheld from foreigners' pay. If a foreigner becomes a tax resident during the year (present for 183 days or more), the tax withheld under the "non-resident" rules is recalculated with reliefs on the employee's application.
Cross-border contracts — check the tax treaty
If Uzbekistan has a double tax treaty with the employee's country, the rates and withholding rules may differ from the general ones. Before paying a non-resident, check the applicable treaty and the residency-confirmation requirements.
How does an employer pay payroll taxes in Uzbekistan?
Calculating and paying payroll taxes is a monthly cycle with fixed roles. Here is the logic for a typical employer.
- 1
Accrue the salary
Determine the gross amount per employee — base pay, allowances, bonuses, and civil-law payments.
- 2
Withhold PIT
Withhold 12% PIT from a resident's gross salary (5% on dividends and interest). Within the PIT, 0.1% automatically goes to the employee's INPS.
- 3
Charge social tax
Calculate 12% of the payroll fund — a company cost on top of salary (25% for budget organizations).
- 4
File and remit
Remit the withheld PIT and accrued social tax to the budget and file the required payroll-tax reporting within the deadlines set by the Tax Code.
The real cost of payroll: a worked example
Let's pull it all into one calculation. Suppose a resident employee's salary is 10,000,000 sum a month.
| Item | Rate | Amount | Who pays |
|---|---|---|---|
| Gross pay | — | 10,000,000 | calculation base |
| PIT | 12% | 1,200,000 | withheld from employee |
| incl. INPS | 0.1% | 10,000 | to employee's account from PIT |
| Take-home (net) | — | 8,800,000 | employee receives |
| Social tax | 12% | 1,200,000 | employer pays on top |
| Cost of hire | — | 11,200,000 | total company cost |
The table shows the key point: the employee takes home 8,800,000 sum, while the company spends 11,200,000 sum. The 2,400,000 sum gap is PIT (sent to the budget and partly to the employee's INPS) plus social tax. When planning headcount, keep the top figure in mind: the real cost of an employee is roughly 12% above their salary because of social tax.
Where Uzbekistan's payroll system is convenient
- Flat 12% PIT — the calculation is predictable and does not rise with salary.
- A low social tax rate — 12% for most employers.
- INPS adds no burden — it is part of PIT.
- A favorable 5% rate on dividends for taking profit out.
What to watch for
- Social tax of 12% is a real cost on top of salary — easy to leave out of the budget.
- For non-residents the rates depend on the income type and tax treaty.
- IT Park residents and certain regimes follow special rules.
- Errors in withholding and deadlines lead to penalties and reassessments.
Common payroll-tax mistakes
What to avoid
Confusing employee withholdings (PIT, INPS) with the employer cost (social tax) and miscounting the headcount budget; treating INPS as an extra tax on top of PIT; forgetting social tax when hiring foreigners; applying "resident" rules to non-residents without checking the income type and tax treaty; taking outdated rates from old articles. Verify the facts on lex.uz and soliq.uz — or hand payroll over to us.
Payroll taxes in Uzbekistan 2026: the essentials
- PIT is a flat 12% on a resident's employment income; dividends and interest are 5%.
- Social tax is 12% of the payroll fund on top of salary (25% for budget organizations).
- INPS is 0.1% to the employee's account out of PIT; it does not add to the burden.
- Non-residents: salary 12%, freight 6%, interest and dividends 10% at source.
- The real cost of hire is roughly 12% above salary because of social tax.
- The employer withholds and remits PIT as a tax agent.
Related articles
- Social Tax in Uzbekistan 2026: 12% and 25% rates, deadlines
- Taxes in Uzbekistan in 2026: rates, regimes, benefits
- VAT in Uzbekistan 2026: rate, 6%, threshold, credits, export
- How to Register an LLC in Uzbekistan: Step by Step
Frequently asked questions
What is the PIT rate in Uzbekistan in 2026?+
For residents it is a flat 12% on employment income; dividends and interest are taxed at 5%. There is no progressive scale.
How much is the employer's social tax?+
For most employers it is 12% of the payroll fund on top of salary; for budget organizations it is 25%.
What is INPS and what is its rate?+
It is the individual funded pension account. The 0.1% contribution goes to the employee's account out of the withheld PIT and does not add to the overall burden.
How are payroll taxes calculated for non-residents?+
At the source of payment: salary under employment and civil-law contracts 12%, freight and international transport 6%, interest and dividends 10% (art. 382 of the Tax Code).
What is the real cost of payroll?+
On top of salary the employer pays 12% social tax. 100 units of salary cost about 112; the 12% PIT and 0.1% INPS are withheld from the employee's pay.
Is INPS withheld from foreigners' salaries?+
Generally no. At the same time, the employer charges social tax on a foreigner's salary regardless of their tax status.
Who remits PIT — the employee or the employer?+
The employer as a tax agent: it withholds PIT on salary payment and remits it to the budget. The employee usually does not need to file a return for their main job.
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Yaroslav Kolesov
Partner, Accounting & Tax practice
DipIFR, CPA Uz, ACCA Affiliate · chief accountant, 15+ years in international companies
BizReg (Ustores LLC, Tashkent) helps foreigners set up companies in Uzbekistan turnkey — registration, legal address, bank account and accounting. 1000+ registrations over 15 years.
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