Working in Tashkent?
Working in Tashkent
As the cultural and economic capital of Uzbekistan and Central Asia, Tashkent has a vibrant local economy. Largely an export nation, Uzbekistan in one of the largest exporters of cotton in the world, and is also famous for its thriving coal, gas, and oil industries, and many of these fuel and export companies have their headquarters or main office in the city.
Much of the industry in the city is also devoted to the manufacturing of agricultural and textile machinery products — which are often exported to Eastern Europe — as well as food processing. As Tashkent is such a diverse city with many hotels, shops, and restaurants, there is also a large service economy, with many of the positions being filled by local residents and those from surrounding Central Asian countries. Typical jobs for expatriates working in Tashkent include English language teaching and senior management or directorial positions in the oil, gas, and coal industries.
Work Permits for Tashkent
In order to work in Tashkent as an expatriate, you will need a work permit. The process by which you apply for your work permit depends on your industry and the specific position you are applying for. Generally, those applying for a work permit need to contact the Uzbekistan Ministry of Labor.
Once the permit is conditionally confirmed, you will need to travel to the city to present your employment contract to the Ministry and also undergo a HIV test, which is a requirement for all foreigners moving anywhere in Uzbekistan. Once this has taken place and you have confirmed your address of residence in Tashkent, you will be granted a work permit for the stated length of your contract of employment.
The ease with which this process is completed depends on the company you are working for and your position within that company, so be prepared for what could be a long process.
Income Taxation in Tashkent
Income tax in Tashkent is payable by all residents in employment, with 'residents' defined as individuals who are physically present in the country for 183 days or more in a twelve month period. Except alimony payments, severance pay, and state pension income, all income from employment and other means is taxable for those living and working as fiscal residents in Tashkent.
As a nonresident working in Uzbekistan, you will only pay tax on what you earn in the country, based on a set percentage (20% for employment income in 2014). Fiscal residents, on the other hand, are taxed on their worldwide income. Like in many other countries, their income tax rates depend on the income of the individual, as outlined by the rates below:
- 0-5 MWM — 7.5%
- 5-10 MWM — 16%
- 10 + MWM — 22%
One MWM is equal to 79,590 UZS, approximately 39 USD or 21 GBP.