Self-employment has existed in Uzbekistan since 1 July 2020 (Presidential Resolution No. PP-4742 of 08.06.2020), and the working procedure is governed by the Regulation approved by Cabinet of Ministers Resolution No. 806 of 23.12.2020. From 1 January 2026 the rules changed significantly: the turnover tax became a single 1%, and a company that pays a self-employed person became a tax agent. Below is what this means in practice.
1. Who is self-employed and when you can engage them
A self-employed person is a citizen who personally performs work or provides services and is registered with the tax authorities in this status. They do not need to register as a sole proprietor. The restrictions are set out in Regulation No. 806:
- the activity must be on the list of permitted types: from 1 January 2026 there are 72 of them (Decree No. UP-50 of 19.03.2025);
- a self-employed person may not hire workers and does all the work personally;
- they may not simultaneously be an employee of a business entity;
- income under the preferential regime must not exceed 1 billion UZS per year.
Engaging a self-employed person makes sense when you need a specific result: delivering an order, building a website, a design layout, repairing a customer's appliance, seasonal field work. If the person must work on your schedule, follow internal rules and perform a function continuously, that is employment and must be formalised with an employment contract.
2. What tax the self-employed pay and where the company comes in
From 2026, self-employed people with annual income up to 1 billion UZS pay turnover tax at 1% (Presidential Resolution No. PP-247 of 12.08.2025, Law No. ZRU-1108 of 25.12.2025). Previously, income up to 100 million UZS was exempt and 4% was paid above that. This scale has been abolished.
The key change for business: for income a self-employed person receives from a legal entity, that legal entity is recognised as the tax agent. The company withholds 1% at source based on a notification from the tax authorities, pays the tax to the budget and files reports broken down by each self-employed person. The tax is recorded on the self-employed person's personal account at their place of registration.
| Payment | Payout to a self-employed person | Civil-law payout to an ordinary individual |
|---|---|---|
| Tax on the payout | 1% turnover tax, withheld by the company | 12% personal income tax, withheld by the company |
| Social tax | not charged | 12%, usually paid by the company |
| Reporting | per self-employed person | personal income tax and social tax |
If a self-employed person's annual income exceeds 1 billion UZS, from the day of exceeding they must switch to VAT and profit tax. See the article on the income limit for details.
3. How to formalise the engagement
A contract with a self-employed person is concluded in writing. It can be a paper document or an electronic one signed with a digital signature: under Uzbekistan law it has the same force. To withstand an inspection, the contract should state:
- the contractor's status: the contractor is registered as self-employed, and the activity type is shown on the QR-code certificate;
- the subject as a result: what exactly must be done, in what scope and by when, not "performing duties";
- the acceptance procedure: an act of completed work (services rendered) for each stage or task;
- the tax clause: the client withholds the 1% turnover tax as tax agent;
- the duty to notify about losing self-employed status or exceeding the income limit.
For every payout the company should hold a set: the contract, the act and an electronic invoice (ESF) that the self-employed person issues from their account on my.soliq.uz or via an electronic document operator. This set confirms the expense and preserves the right to deduct it when calculating profit tax.
4. Checking the contractor before payout
Before the first payout and regularly afterwards, check three things:
- the self-employed status is active: the contractor has a QR-code certificate from the tax service;
- the activity type on the certificate matches what you are paying for and is on the list of 72 types;
- this year's payouts are not bringing the contractor close to the 1 billion UZS limit.
Note that many activity types on the list are limited to services for individuals, such as minor plumbing repairs or home cleaning. Paying for such services as a company to a self-employed person is risky: formally the activity type does not fit an order from a legal entity.
5. Reclassification risk
The tax authorities and the labour inspectorate look at the actual relationship, not the name of the contract. Signs of employment: a fixed schedule, a permanent workplace, following internal rules, the same amount twice a month regardless of results, a job title in documents, working only for your company. If the relationship is deemed employment, the company will be assessed 12% personal income tax and 12% social tax with penalty interest, and violations of labour law carry an administrative fine under the Code of Administrative Responsibility.
In short: a self-employed contractor suits one-off and project tasks with a clear result. The company withholds 1%, collects a contract, an act and an e-invoice for every payout and monitors the contractor's status and limit.
This material is for reference and reflects the legislation of the Republic of Uzbekistan as of October 2026. Before acting on a specific situation, check the current wording of the acts on lex.uz or consult a tax adviser.