Can the withholding tax be reduced under a double-tax treaty?

Yes. If a DTT is in force between Uzbekistan and the contractor's country, the rate may be reduced or the income exempt. To apply the relief, the non-resident contractor must provide a tax-residency certificate from their country before the income is paid (Art. 357 of the Tax Code). Accurate as of 2026-06-15.

What documents does the bank need for an outbound FX payment?

The core set: a foreign-trade contract with the non-resident, a payment invoice, and an act or other document confirming that the service was rendered. The bank keeps the contract on record and may request additional information. Confirm the exact list with your bank and at cbu.uz. Accurate as of 2026-06-15.

How to Pay Foreign Contractors From an Uzbek Company

Q: How does an Uzbek company pay a foreign contractor?

The payment goes from the company's FX account under a foreign-trade contract and an invoice through the servicing bank. The bank checks the deal documents, keeps the contract on record and clears the transfer within the Central Bank's FX rules. Before paying for services, the company usually withholds tax at source as a tax agent. Accurate as of 2026-06-15.

Q: Must withholding tax be deducted when paying a non-resident for services?

Yes. Non-resident income from services (including consulting, management, marketing, IT) is subject to withholding tax at 20% under Article 353 of the Tax Code. The Uzbek paying company acts as a tax agent and withholds the tax on payment. A double-tax treaty (DTT) may lower the rate. Accurate as of 2026-06-15.

Outbound FX payments to freelancers and contractors from an Uzbek company: non-resident contracts, withholding tax, documents for the bank, IT and marketing

Last updated 2026-06-15

Ivan Karataev

Managing Partner, BizReg

MBA, ACCA, CPA · ex-KPMG, ex-CFO of NYSE-listed companies · 20+ years in US & Uzbek business

Last updated 2026-06-15 · 12 min read

✓ Facts verified against primary sources (lex.uz, soliq.uz)

Last updated 2026-06-15 · 12 min read · ✓ Facts verified against primary sources (lex.uz, soliq.uz)

To pay foreign contractors from Uzbekistan, you need a contract with the non-resident, a payment routed through the currency account under currency-control rules, and, where applicable, withholding tax on services — the three layers an outbound payment cannot clear without. Receiving revenue from abroad is only half the job. Spending it matters just as much: paying overseas developers, designers, marketing agencies, SaaS and ad platforms. From an Uzbek company this is done legally and predictably, but an outbound FX payment has three layers that are easy to underestimate: the contract with the non-resident, the withholding tax on services, and the document set for the bank. Let us walk through each one step by step, with real IT and marketing cases.

Key takeaways

An outbound payment goes from the FX account under a foreign-trade contract and invoice, via the bank.
Non-resident services are subject to 20% withholding tax (Art. 353 of the Tax Code) — the company withholds it as a tax agent.
A DTT can lower the rate or exempt the income — you need the contractor's residency certificate before payment (Art. 357).
The bank keeps the contract on record and checks the deal documents — prepare them in advance.
If the withholding tax is not in the contract, the payment grows by a quarter — agree the clause before signing.

The mirror task: outbound, not inbound

In a separate piece we covered how to accept payments from abroad — the inbound side: bringing revenue onto the Uzbek company's FX account. This article is about the opposite direction. The money is already on the account, and now it has to go out: to a freelancer in another country, to an agency, to a software vendor.

At first glance sending seems easier than receiving. In practice an outbound FX payment is stricter: the bank checks not only the formal details but the economic substance of the deal, and the tax authority expects the company to withhold tax at source on the non-resident's income correctly. A mistake here costs more — it is not just a delayed transfer, but assessments and penalties.

Contract with a non-resident

Without a foreign-trade contract the bank will not clear the transfer. The contract defines the service, amount, currency and timing.

Withholding tax

Payment for a non-resident's services is taxed at source. The company withholds the tax on payment as a tax agent.

Documents for the bank

The bank keeps the deal on record and checks the invoice, act and contract. The set is prepared in advance, not on payment day.

How do you pay foreign contractors from Uzbekistan step by step?

Here is the full route of an outbound FX payment — from contract to confirmation that the service was rendered. This is the unique process «map» worth checking against every time.

1
Contract with the non-resident
You sign a foreign-trade services contract: subject, scope, amount, currency, timing, and who bears the withholding tax. This is the foundation; without it the bank will not act.
2
Contract registered with the bank
You submit the contract to your servicing bank. The bank puts the deal on record (assigns it an identifier) and afterwards reconciles every payment and closing document against it.
3
Invoice for payment
The contractor issues an invoice referencing the contract. The amount, currency and recipient details must match the contract terms.
4
Calculating and withholding the tax
Before transfer, the company determines the withholding rate by income type and checks whether a DTT applies. The tax is withheld from the payment amount.
5
Payment order and FX control
You submit the order and the document set to the bank. The bank performs FX control and executes the transfer within the Central Bank's rules.
6
Closing document
Once the service is rendered, the parties sign an act (or another confirming document). It closes the deal in the bank's records.

Sequence is everything

A common mistake is to send the money «quickly» first and arrange the contract and act later. With an outbound FX payment that does not work: first the contract and its registration with the bank, only then the invoice and transfer. Otherwise the bank simply will not process the operation.

Review your contractor payment in a consultation

Withholding tax on a non-resident's services

This is the most underestimated layer of an outbound payment. When an Uzbek company pays a foreign contractor for services, part of the sum is by law withheld into the Uzbek budget as tax at source. The company acts as a tax agent: the non-resident files nothing themselves; the payer withholds and remits the tax. The object and the list of non-resident income are set out in Article 351 of the Tax Code, and the rates in Article 353.

The key point for anyone paying freelancers and agencies: income from services — including consulting, management, marketing and IT — is taxed at source at 20%. This is the «surprise» that can make a payment a quarter more expensive if the tax was not built into the contract.

Вид дохода / IncomeСтавка у источника / WHT

Services (consulting, marketing, IT, management)

the most common case when paying a contractor

20%

Royalties (licences, software, trademarks)

payments for the right of use

20%

Rent and other income

including other Uzbek-source income

20%

Interest on loans

debt obligations

10%

Dividends

paid to a non-resident participant

10%

Freight (international transport)

transport and forwarding services

Build the tax into the contract before signing

If the contract does not state who bears the withholding tax, the company in practice has to gross it up — and a 1,000-unit service payment effectively costs more. Agree the withholding clause during negotiations, not after the fact. Source: Art. 353 of the Tax Code, lex.uz. Accurate as of 2026-06-15.

These are the domestic rates. They apply when there is no treaty or when the contractor has not confirmed residency. A detailed breakdown of all rates and the withholding procedure is in our piece on taxes for non-residents: withholding tax.

When does a tax treaty lower the tax on paying foreign contractors?

Uzbekistan has double-tax treaties (DTTs) with dozens of countries. For an outbound payment this means the domestic rate is not always final: under a treaty it may be lower, or the income may be exempt. But the relief is not automatic — it must be justified.

1
Check that a DTT exists
Confirm a treaty is in force between Uzbekistan and the contractor's country and that it covers your income type (services, royalties).
2
Request a residency certificate
The non-resident contractor must provide a tax-residency certificate from their country — before the income is paid (Art. 357 of the Tax Code).
3
Withhold at the treaty rate
With a valid certificate, the tax agent withholds at the treaty rate or does not withhold at all.

No certificate — domestic rate

If there is no residency certificate at the time of payment, the company must withhold at the domestic rate. A refund may be possible later once the right to relief is confirmed — but that is a separate procedure. It is simpler to obtain the certificate in advance. Accurate as of 2026-06-15.

Documents for the bank: a table

The bank is the second gatekeeper after the tax authority. It does not process an outbound FX transfer «on trust»: every operation needs a documentary foundation. Below is a unique table of the core set, who prepares it and what to watch for. Always confirm the exact list with your bank and at cbu.uz.

Документ / DocumentКто готовит / Prepared byНюанс / Note

Foreign-trade contract

Company and contractor

Subject, amount, currency, timing, withholding clause. The basis for the bank to register the deal.

Invoice

Non-resident contractor

References the contract; amount and currency match; recipient details.

Payment order

Company

Submitted to the bank with the set; the bank runs FX control.

Act of services rendered

Parties to the contract

Confirms the service was provided; closes the deal in the records.

Residency certificate

Non-resident contractor

Needed only to apply a DTT — before the income is paid.

Withholding tax calculation

Company (tax agent)

Sets the amount withheld; the basis for remitting the tax to the budget.

Prepare the set around the contract, not the payment

The longest stage is not the transfer itself but gathering and agreeing the documents and registering the contract. If a contractor needs to be paid regularly, set up a framework contract once — after that every payment moves faster.

Assemble the document set for payments abroad

Typical cases: IT and marketing

Theory is clearer with specifics. The two most common scenarios among our clients are paying for overseas IT development and paying for international marketing. The same mechanics apply in both, but the nuances differ.

IT: paying a developer or studio

services 20%

A company hires an overseas developer or studio for a project. This is services — so 20% withholding tax applies unless a DTT does. Build the tax into the project budget in advance and request a residency certificate if the contractor's country has a treaty with Uzbekistan.

Marketing: agencies and ad services

services / royalties

Paying an overseas marketing agency is services (20% at source). Separately, check payments for software and subscriptions: if in substance they are a right of use (royalties), the rate is also 20%. Distinguish «service» from «licence» in the contract to classify the income correctly.

In both cases there is a third, banking layer. Recurring payments to the same contractor are easier under a framework contract: the bank registers it once and then reconciles invoices and acts against it. For IT companies operating through IT Park, remember: a resident's benefits cover the company's own taxes but do not cancel its duties as a tax agent on payments to non-residents — withholding tax applies on a general basis.

Paying foreign ad accounts

Paying overseas ad accounts and platforms is a frequent and compliance-sensitive payment. A correct contract (or the platform's offer) and a clear payment purpose matter especially here. Do not try to replace it with transfers from personal cards — that means fees and risk instead of proper accounting.

What not to do

Outbound payments are the area where «cutting corners» is the most expensive. Briefly — the typical mistakes and the right way.

Do this

Contract first and registered with the bank, then the invoice and payment.
The withholding-tax clause is written into the contract before signing.
The residency certificate is requested in advance when a DTT exists.
The closing act is signed and given to the bank after the service.

Avoid this

A «quick» transfer with no contract or invoice — the bank will not process it.
Withholding tax ignored — the payment grows by a quarter.
Paying via personal cards instead of a company contract payment.
No residency certificate obtained — the DTT relief is not applied.

How long it takes

If the contract and documents are ready, the bank processes the transfer in the normal course. The longest part is the «wrapping»: agreeing the contract with the contractor, registering it, and the bank's compliance on the first deal. For a one-off payment, allow time to prepare documents; for recurring payments, set up a framework contract once and subsequent transfers move noticeably faster.

Account separately for the tax cycle: the withholding tax must not only be deducted but also remitted to the budget and reported in the tax agent's filings within the set deadlines. So an outbound payment is not just a transfer but an accounting operation. If you are only opening a company, start with the basics — how to open an LLC step by step — and then set up settlements.

Frequently asked questions

How does an Uzbek company pay a foreign contractor?+

The payment goes from the FX account under a foreign-trade contract and invoice via the servicing bank. The bank checks the deal documents, keeps the contract on record and runs FX control. Before paying for services, the company usually withholds tax at source as a tax agent. Accurate as of 2026-06-15.

Must withholding tax be deducted when paying a non-resident for services?+

Yes. Non-resident income from services (consulting, management, marketing, IT) is taxed at source at 20% under Article 353 of the Tax Code. The Uzbek paying company withholds the tax on payment as a tax agent. A DTT may lower the rate. Accurate as of 2026-06-15.

Can withholding tax be reduced under a treaty?+

Yes. If a double-tax treaty is in force between Uzbekistan and the contractor's country, the rate may be reduced or the income exempt. The non-resident contractor must provide a tax-residency certificate from their country before the income is paid (Art. 357 of the Tax Code). Accurate as of 2026-06-15.

What documents does the bank need for an outbound payment?+

The core set: a foreign-trade contract, an invoice, a payment order and an act of services rendered; for DTT relief, a residency certificate. The bank keeps the contract on record and may request more information. Confirm the exact list with your bank and at cbu.uz. Accurate as of 2026-06-15.

Can the company pay a freelancer who is an individual?+

Yes, but the payment is still formalised with a contract and invoice, passes the bank's FX control and is subject to withholding tax under the rules for non-resident income. Grey transfers via cards mean fees and risk — a transparent contract payment is better. Accurate as of 2026-06-15.

Who bears the withholding tax — the company or the contractor?+

Legally the tax is withheld from the non-resident's income, but unless the contract says otherwise, in practice the company often grosses it up and the payment becomes more expensive. Agree the withholding clause in the contract before signing. Accurate as of 2026-06-15.

Does IT Park resident status affect payments to contractors?+

IT Park benefits cover the company's own taxes but do not cancel its duties as a tax agent. On payments to non-residents for services, withholding tax applies on a general basis. Accurate as of 2026-06-15.

We will set up your outbound FX payments — from the contractor contract and withholding tax to the bank documents

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Sources

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