The most vibrant crypto center of Central Asia is Uzbekistan. Since 2023, the locals may trade digital assets exclusively with the locally licensed platforms, whereas, the mining pools, exchanges, depositories and so-called crypto-shops are under an undoubtedly unambiguous permit regime. What tends to shock the first-timers, however, is that almost every crypto transaction comes tax-free. … Read more
The most vibrant crypto center of Central Asia is Uzbekistan. Since 2023, the locals may trade digital assets exclusively with the locally licensed platforms, whereas, the mining pools, exchanges, depositories and so-called crypto-shops are under an undoubtedly unambiguous permit regime.
What tends to shock the first-timers, however, is that almost every crypto transaction comes tax-free. Knowing the points where the exemptions are and are not, what types of records the State Tax Committee (STC) and the National Agency of Perspective Projects (NAPP) can inquire into, will put investors, miners and those who provide services into the right part of the rules.
The 2025 tax policy is established in the Presidential Decree No. UP-229 (Dec 2024).
Decree No. RP-3832 (July 2018) & No. RP-3926 (Sept 2018) -legalise crypto trading and mining, exempt it of tax.
NAPP Order 3380 (Aug 2022) – licensing requirements of CASPs.
Classification: Crypto-assets are classified as property rights and not legal tender (so-called digital assets). Tokens are divided into secured (asset-backed, investment, stable) and unsecured utility ones, the issuance of which is limited to sandbox projects.
Even in the case of 0% rate, reporting obligations are present. People submit a yearly Statement of Income (Form DSF-1) by 1 April, which includes crypto wallet addresses, transaction amounts and the VASP ID of the counterparty. Corporations attach a Crypto Turnover Annexe with their profit-tax return. Licensed VASPs are obliged to store KYC profiles, blockchain logs and order books over five years and to send quarterly transaction summaries to the STC through the “Soliq-Crypto” portal. Late filings are met by an administrative charge of UZS 2 million (=US$160) and 0.1% interest per diem of any unpaid liability that may occur in case of an exemption lapse.
Due to the fact, that the existing crypto revenue is not eligible for taxation, the traditional deductions largely become irrelevant. However, the solar-powered miners can claim 100% of the capital cost of panels and inverters as a deduction against any business profit that is taxable in other lines.
Start-ups within the NAPP regulatory sandbox will be able to deduct R&D expenses, insurance covering against cyber security risks and smart-contract verification against future taxable income when they come out of the sandbox. In the event of the crypto exemption being removed, the losses arising on a disposal will be deductible against the future taxable gains, carried forward within a maximum of five years.
The penalty of not submitting an annual crypto statement is – fine of up to 10% of undeclared turnover. Creating KYC or using foreign exchanges that are not licensed causes an administrative offence according to Article 155 of the Code of Administrative Responsibility (a fine of up to UZS 150 million) and a temporary blocking of the wallet.
Repeat offenders or individuals laundering > UZS 5 billion face criminal prosecution: five-year imprisonment with the digital resources confiscated. Data retention or AML violations by licensed VASPs result in license suspension and a monthly fine of 5% of the turnover of the previous year until the defects are eliminated.
The Budget Memorandum 2025 – 2027 asks the NAPP and the Ministry of Finance to develop a gradual model of phasing in taxes by Q4 2026. Suggestions are a 3% flat CGT on retail trades and a 5% corporate levy on VASP net income, which is offset by R&D credits and a 0% VAT on blockchain exports. The 0% regime will remain until a final bill passes through Parliament, but it is clear that stakeholders will need to plan to change.
The Uzbekistan 0% tax policy is unparalleled and the country is a unique paradise to crypto investors and service providers, provided they have all the licensing, AML and reporting obligations. Trade on local platforms, store wallet logs for five years and file the annual disclosure forms to remain out of penalty. With legislators discussing low taxes by 2027, you can plan early and consult professionals to make sure that your operations will be both profitable and legal in the rapidly changing Uzbek market.
Yes, since the exemption is abrogated by the use of an unlicensed foreign exchange, the gains might be re-characterized as ordinary income.
Yes, but you have to pay double-tariff electricity and a peak-hour surcharge; the income itself is exempt.
Yes, foreigners can trade and withdraw in foreign currency using licensed VASPs.
No. VASP service fees are zero-rated until not later than 1 Jan 2028.
Retain wallet addresses, transaction hash, exchange invoices, and bank advice for five years in the event of audit.
