Gov’t introduces automatic tax withholding for high-income self-employed drivers and couriers

This new tax mechanism is part of a government resolution passed in April, the Tax Committee's press service reported. Under the new rules, aggregators will act as tax agents and withhold taxes at the source once a self-employed individual’s annual income crosses the 100 million UZS threshold.

Currently, over 776,700 self-employed individuals in Uzbekistan provide passenger transport and delivery services. As of July 1, 208 legal entities – online taxi aggregators – have fully integrated with the State Tax Committee’s information systems.

More than 430,000 self-employed drivers currently operate through these platforms, offering regular taxi services to the public. Since the beginning of 2025, these aggregators have transferred 89.6 billion UZS in taxes to the state budget.

Starting July 2, when a self-employed driver’s income surpasses the 100 million UZS mark, the aggregator will automatically withhold the applicable tax based on notifications from the tax authorities. So far this year, 189 self-employed individuals have reported incomes above this threshold.

Tax background:

According to Uzbekistan’s tax legislation, once a self-employed person’s annual income exceeds 100 million UZS, they are required to:

• Pay a 4% turnover tax as an individual entrepreneur.
• Submit regular tax reports.

The Tax Committee emphasized that the new system eliminates the need for self-employed drivers and couriers to manage their own tax calculations, payments, and reporting. This streamlined process reduces administrative burdens and ensures compliance.

Yandex Uzbekistan was the first company to automate the tax payment process on behalf of its self-employed partners – both drivers and couriers.

In 2024, the size of Uzbekistan’s formal (“white”) taxi market reached 5.89 trillion UZS, with the average fare per ride at 18,456 UZS. Over the year, nearly 320 million taxi rides were completed, 23.7% of which were paid by card.

Earlier, Uzbekistan officially allowed individuals to work in the taxi sector on a permanent basis as self-employed workers.