On April 18, the President of the Republic of Uzbekistan signed a law aimed at improving legal relations in the fields of taxation and entrepreneurship. This law significantly strengthens accountability measures for evading tax or fee payments, intended to bolster state finances and enhance economic discipline amid ongoing reforms.

Article 179 of the Criminal Code (Fake Entrepreneurship) has been amended, establishing a lower limit for penalties related to such activities. Now, this crime is punishable by a fine ranging from 100 to 200 times the base calculation amount, corrective labor for up to three years, restriction of freedom for one to three years with deprivation of certain rights, or imprisonment for the same period. These changes target reducing instances of abuse in entrepreneurial activities.

Substantial amendments have also been made to Article 184 of the Criminal Code. In the first part, imprisonment has been added as a penalty, and for concealing profits or evading taxes in a significant amount, the fine has been increased to 100–150 times the base calculation amount, with restriction or deprivation of freedom set at one to three years. In the second part, for repeated or large-scale evasion, the fine is raised to 200–300 times, and the term of restriction or deprivation of freedom is extended to three to five years.

In the third part, for tax evasion in a particularly large amount, only severe penalties remain: a fine from 300 to 600 times the base calculation amount or imprisonment for five to seven years. However, if taxes on concealed profits are fully paid, penalties involving restriction or deprivation of freedom are not applied, a measure designed to incentivize offenders to compensate for damages.

Under the new rules, a person committing the crime for the first time is exempt from liability if they fully compensate the state for damages before the investigation begins. Amendments to Article 174 of the Administrative Liability Code have also increased fine amounts for citizens and officials. The law will come into force three months after its official publication.

Source: www.gazeta.uz