«Second Chance» economic amnesty: penalties to be written off, fines waived

An unprecedented initiative has been put forward in Uzbekistan to financially support small and medium-sized businesses, reduce the tax burden, and bring enterprises that have suspended their operations or made mistakes back into active economic life. In accordance with a Presidential Decree, the «Second Chance» large-scale economic amnesty has been announced in the republic for small and medium-sized businesses.

The benefits of this amnesty will be valid until December 31, 2026, creating a crucial opportunity for entrepreneurs to start their activities with a «clean slate». amu

Main conditions and benefits provided by the «Second Chance» amnesty

The new procedure aims to resolve relations between tax authorities and entrepreneurs not through punishment, but through mutual agreement and incentives:

• Cancellation of penalties and suspension of enforcement: If an entrepreneur fully covers the primary tax debt accumulated prior to the amnesty by December 31, 2026, all accrued penalties will be written off and compulsory enforcement actions (judicial enforcement proceedings) will be terminated;

• Opportunity to correct reports without penalties: If an entrepreneur independently corrects errors in tax reports and pays the additionally calculated tax in full by the end of 2026, no penalties will be charged on this amount;

• Abolition of liability for bank payments: Complete exemption from administrative liability established for failing to timely submit a payment order to the bank for the payment of taxes and fees;

• Protection of the sustainability rating: Within the framework of the amnesty, the scores of conscientious entrepreneurs who voluntarily and independently eliminate their mistakes in the «Business Entity Sustainability Rating» will not be reduced.

Which fines accrued before January 1, 2026 will be completely canceled?

The document stipulates that a number of problematic debts accumulated by business entities in past periods will be completely written off:

• All unpaid parts of fines applied for untimely submission of tax reports will be written off;

• The unpaid portion of financial sanctions assigned to payers of fixed turnover tax will be canceled.

Formalization of employment contracts: Penalty-free period in the Unified National Labor System (UNLS)

Another important direction of the amnesty is aimed at legalizing labor relations. Employers will have the right to freely register employment contracts previously concluded with employees but not entered into the system in the Unified National Labor System (UNLS) without fines for missed deadlines.

According to experts, the «Second Chance» program will protect enterprises in severe financial distress from bankruptcy, improve tax discipline on a voluntary basis, and give small businesses a strong breath of fresh air to resume their activities.

In your opinion, is the «Second Chance» economic amnesty sufficient for troubled enterprises to get back on their feet and step out of the «shadow»? What other financial reliefs should be introduced to further support business? Leave your comments below!