According to paragraph 16 of Article 378 of the Tax Code, wages and other income subject to taxation, directed to education in professional and higher educational organizations of Uzbekistan (for the education of oneself or children under the age of 26 or spouse), are not subject to taxation.

Income tax is not withheld from funds paid for contracts of the following 3 categories:

• transferred by a citizen to his contract;
• parents transfer to the contract of their child under the age of 26;
• transfer to the contract of a spouse under the age of 26.

Which educational institutions are eligible for this benefit:

• students of vocational education (vocational schools, colleges and technical schools);
• Higher education students.

The tax deduction is provided when making a payment at the expense of:

• own funds;
• educational loans issued to an individual by commercial banks;
• funds (loans) provided by legal entities to individuals on a repayable basis.

   When payment is made independently, not from wages, a tax deduction can be used by submitting an annual income declaration.

   Note: no benefits apply if payment is made for contracts of persons other than the above 3 categories, for example, brothers, sisters, sons-in-law or daughters-in-law, or other persons.