Uzbekistan - Opportunity to Reduce Overdue Accounts Receivable on Foreign Trade Operations
Viktoriya Sleta
Pursuant to Decree of the President of the Republic of Uzbekistan No. UP-176 dated August 27, 2026, a one-time nationwide campaign has been introduced until January 1, 2027, for businesses with overdue accounts receivable on export operations incurred prior to August 28, 2026.
Companies may settle such receivables using their own funds, including foreign currency cash deposited through a bank. Once credited, the receivable in the "E-kontrakt" system is reduced proportionally, and the corresponding portion of the penalty for failure to ensure asset repatriation is written off. These funds are not recognized as export proceeds and do not qualify for zero-rate VAT.
Additionally, from January 1, 2027, a court may halve the repatriation penalty if the resident has acted in good faith to collect the debt, has repatriated more than 50% of assets, or was unable to do so due to international sanctions or currency restrictions in the counterparty's country.
These measures do not apply to companies with a state ownership share of 50% or more.
The Decree entered into force on August 28, 2026.
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