Crypto Taxation in Uzbekistan: A Complete Guide

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.

Tax Authorities & Regulations

Main bodies:

• State Tax Committee (STC): These gather national taxes, and audit the entities.
• National Agency of Perspective Projects (NAPP): licenses and supervises all the virtual-asset service providers (VASPs).

Key acts:

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.

Types of Crypto Taxes in Uzbekistan

• Capital Gains Tax (CGT): The crypto disposals currently have no claim to the capital gains tax.
• Income Tax: Earned Income in Crypto in the form of Crypto earned via mining, staking, salaries or airdrop is not taxed.
• Value-Added Tax (VAT): Crypto trades and crypto-associated fees are not subject to the VAT.
• Other: The digital assets do not have wealth tax, inheritance tax, and customs duty.

Tax Rates & Brackets

• Capital gains: 0% of individuals and businesses on qualified crypto trades.
• Ordinary income: 0% in case the income is obtained through licensed crypto activities only.
• Corporate profit tax: The normal 15 to 20% does not apply to registered VASPs on their crypto-related turnover until 1 Jan 2028.
• Exemptions: Income and profits of licensed mining pools and solar-powered farms will be tax-exempt; VAT zero-rating of VASP services will last until 2028.

Crypto Transactions & Tax Treatment

• Buying & holding: No tax on purchase; unrealised profits disregarded.
• Selling to fiat or UZS: Exempt, on the condition that the trade is made using a VASP based in the country.
• Crypto-to-crypto swaps: Exempted as well when carried out in a licensed exchange.
• Mining & staking rewards: Treated as non-taxable income in case the miner is registered by NAPP.
• Crypto Salaries / Contractor fees: Allowed and currently tax free on both sides.
• DeFi lending, yield farming: Profits channeled through authorized wallets are spared; returns on DeFi offshore can be lost.
• NFTs: The sale of NFTs in Uzbek platforms is tax-exempt; residents can sell NFTs in foreign exchanges but repatriation of receipts must be done via a local VASP to maintain exemption.

Crypto Tax Reporting & Compliance

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.

Tax Deductions & Exemptions

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.

Enforcement & Penalties for Non-Compliance

• The STC checks the activity of residents by:
• KYC requirements at VASPs;
• blockchain analytics data provided by the Chainalysis/NAPP tool called Crystal UZ;
• STRs on commercial banks alerting to bulk crypto-fiat conversion.

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.

Future of Crypto Taxation in Uzbekistan

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.

Conclusion 

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.

FAQs

1. Am I supposed to pay Uzbek tax trading on Binance or Coinbase?

Yes, since the exemption is abrogated by the use of an unlicensed foreign exchange, the gains might be re-characterized as ordinary income.

2. Will mining rewards remain tax-free when I use electricity supplied by the grid to power rigs?

Yes, but you have to pay double-tariff electricity and a peak-hour surcharge; the income itself is exempt.

3. Are non-residents allowed to create accounts with Uzbek crypto exchanges?

Yes, foreigners can trade and withdraw in foreign currency using licensed VASPs.

4. Are the trading fees on crypto-exchanges subject to VAT?

No. VASP service fees are zero-rated until not later than 1 Jan 2028.

5. Which records do I need to maintain?

Retain wallet addresses, transaction hash, exchange invoices, and bank advice for five years in the event of audit.