Key Legislative Changes for Entrepreneurs in 2025

From April 1, Authorities will:

ease liability for tax violations. First-time violators will receive a warning. If the violation is repeated within three days, it will trigger a field tax audit.
introduce a simplified VAT refund mechanism for livestock and poultry farms. Until January 1, 2028, these farms will receive a monthly refund of 50% of the VAT they paid, provided that at least 90% of their revenue comes from their own production (meat, milk, eggs, poultry meat).
reduce the social tax and personal income tax (PIT) rates to 1% for newly established agricultural cooperatives and cooperatives cultivating medicinal plants, including their employees.

From May 1, Authorities will:

implement measures to encourage business consolidation. Self-employed individuals who register as sole proprietors or legal entities will be exempt from state duties. These entities will be eligible for collateral-free loans:
- up to 50 million UZS under the Family Entrepreneurship Development Program;
- up to 150 million UZS under the Comprehensive Support Program for Small Business.
grant entities that transition to medium or large business categories the right to accelerated VAT refunds—processed within 7 days—during their first year after the status change
enable newly established small and medium-sized businesses in the Republic of Karakalpakstan to access collateral-based loans without a minimum turnover requirement.
launch a “Champion Entrepreneurs” support program, identifying high-potential entrepreneurs at the district, regional, and national levels.
establish industrial development project offices in 20 districts. These offices will provide consulting and HR services to small and medium-sized enterprises, including assistance in recruiting engineers, accountants, marketers, and other specialists. The government will allocate 100 billion UZS from the State Budget to fund this initiative.

From July 1, Authorities will:

introduce a three-year moratorium - until January 1, 2028 - on adopting new regulations that impose additional obligations on small and medium-sized enterprises.
enforce the “Single Effective Date” principle, ensuring that all new business-related regulations take effect only on January 1 or July 1.
implement the “First Opportunity” principle, exempting small and medium-sized enterprises from administrative liability for first-time administrative violation committed within their first year of operation.
allow businesses to use vacant state-owned properties free of charge for up to 5 years (up to 10,000 sq. meters), based on recommendations from project offices and provided they set up high-tech production facilities.

From September 1, Authorities will:

waive tax audits during the voluntary liquidation of small and medium-sized enterprises if:
- their total income over the past three years did not exceed 10 billion UZS;
- they have no outstanding debts to the government or creditors;
- they are classified as “low risk” in the risk analysis system;
- they have submitted all tax reports on time and in full.

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