Tax late-payment penalties to be capped at the amount of the debt: bill passes first reading

The Legislative Chamber of the Oliy Majlis has approved in first reading a bill to support entrepreneurs. Its key change: the penalty for late payment of tax may not exceed the amount of the unpaid tax. This is still a bill, not law: further readings, Senate approval and the President's signature are still ahead.

Deputies considered the document on 27 October 2026, the lower chamber's press service reported. The bill was presented by Deputy Minister of Economy and Finance Akhadbek Khaydarov. No entry-into-force date has been set yet.

How penalties are calculated now

Under Article 110 of the Tax Code, a penalty accrues for each day of delay, starting from the day after the payment deadline. It equals 1/300 of the Central Bank refinancing rate on the unpaid amount per day. At a 14% rate, a debt of 10 million soums grows by about 4,667 soums a day.

The current code sets no overall cap on penalties. Such a limit existed in the 2007 Tax Code but was not carried over into the 2019 code. With a long delay, the penalty can exceed the debt itself.

What else the bill proposes

• automatic lifting of the suspension of bank account operations if, after a desk audit, the taxpayer submits explanations or corrected reports;
• tax benefits for pharmaceuticals, sericulture, textiles, private preschool organisations, social services and large real estate investment projects;
• reduced rates for businesses in Karakalpakstan and in districts in the 5th category of economic development;
• additional benefits for small businesses switching from turnover tax to VAT and profit tax.

What about the "Second Chance" amnesty

That is a separate measure. The "Second Chance" economic amnesty for small and medium-sized businesses was announced by a presidential decree of 27 August 2026. It allows accrued penalties to be written off if the tax debt is paid in full by 31 December 2026 and the amnesty conditions are met. Unlike the amnesty, the cap in the bill would be permanent.

What this means in practice. Until the law is adopted, penalties keep accruing as before, with no upper limit. If your company has a tax debt, it pays to settle it by 31 December 2026 and use the "Second Chance" amnesty, if you meet its conditions. Once the law takes effect, the penalty on any arrears will not be able to exceed the debt itself.

Photo: Davide Mauro, Wikimedia Commons (CC BY-SA 4.0)