Taxi drivers' income calculation resets to zero

Taxi driving has been added to the list of self-employed activities, allowing drivers to continue working independently. 

According to the presidential decree issued on February 27, passenger transportation by light vehicles within cities, suburban areas, and intercity routes has been added to the list of activities that self-employed individuals are allowed to engage in. A license certificate is required for this activity.

Previously, self-employed individuals were permitted to engage in passenger transportation until January 1, 2025 (registration as a self-employed individual is available for free through the Tax mobile application).

The Tax Committee clarified that self-employed individuals’ earnings from work activities or from selling goods and services up to 100 million UZS within a tax period (year) are not subject to taxation. At the beginning of each new year, the income calculation starts from zero.

If their income exceeds 100 million UZS within a tax year, they will be taxed according to the regulations set for individual entrepreneurs (Article 369 of the Tax Code).

“For example, if a taxi driver’s income does not exceed 100 million UZS in 2024, or even if it does, the calculation will reset to zero in 2025, and their income up to 100 million UZS will not be taxed.

Additionally, to ensure a simple and convenient process for taxi drivers, a proposal has been developed to automatically calculate and transfer taxes to the budget through tax agents (taxi aggregators) when their income exceeds 100 million UZS (but remains below 1 billion UZS). If this proposal is accepted and incorporated into legislation, this taxation system will be implemented,” the Tax Committee stated.

For reference, as of February 1, 2025, 736,000 self-employed individuals are engaged in passenger transportation.