For many international organizations, businesses, and international schools in Uzbekistan, securing high-quality health insurance often means purchasing policies from international insurers based outside of Uzbekistan. While this ensures access to global-standard medical coverage, it also introduces a significant financial consideration—withholding tax (WHT).
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Understanding Withholding Tax on Health Insurance Premiums
Under Uzbek tax regulations, any payments made from an Uzbekistan-registered entity to an international insurer are subject to withholding tax, which can be as high as 20% of the total premium value.
What This Means in Practice
- If a company purchases a US$100,000 international health insurance policy, an additional US$20,000 may be required in withholding tax.
- This substantial extra cost can impact an organization’s budget, making health insurance significantly more expensive than initially anticipated.
Fortunately, there are legal, compliant strategies to reduce or eliminate this additional tax burden.
How to Avoid the 20% Withholding Tax in Uzbekistan
Organizations can opt for an international health insurer that operates in a jurisdiction covered by Uzbekistan’s Double Taxation Treaty (DTT). The DTT relief framework allows businesses to either reduce or entirely avoid the withholding tax when making payments to insurers in treaty-compliant jurisdictions.
Key Steps to Take:
✔ Choose an insurer based in a DTT-compliant country – This can significantly lower or eliminate WHT.
✔ Work with a knowledgeable broker – A specialist health insurance broker can advise on insurers that meet regulatory and tax requirements.
✔ Ensure correct documentation and compliance – Companies must follow the proper procedures to qualify for tax relief.
How We Can Help
At One World Cover, we have a panel of international health insurers from jurisdictions that comply with Uzbekistan’s Double Taxation Treaty (DTT) relief. This ensures that your organization can access top-tier international health coverage while avoiding unnecessary tax costs.
✔ Access premium global healthcare providers
✔ Ensure compliance with Uzbek tax regulations
✔ Avoid unnecessary financial burdens on your organization
For quotes and expert guidance in selecting the right tax-efficient international health insurer for your needs, contact us today.
* Note: This is not tax advice; always consult with experienced tax professionals for information specific to you or your company.
