Uzbekistan

Uzbekistan classifies crypto-assets as property rights, not legal tender, under its legal framework established in July 2018. The country maintains a regulated environment for cryptocurrencies, with a dedicated legal framework governing crypto-asset service providers, exchanges, and mining operations since 2018. All trading activities must occur through licensed local platforms. The National Agency of Perspective Projects (NAPP) is responsible for licensing and regulating crypto-asset service providers, while the State Tax Committee enforces tax compliance and reporting. Currently, Uzbekistan implements a 0% tax rate on various crypto-related activities. Individuals benefit from a 0% tax on qualified crypto transactions and capital gains until January 1, 2029. This means all gains, regardless of the holding period, are tax-free when trades are conducted via licensed Crypto-Asset Service Providers (VASPs). Income derived from mining, staking, or airdrops is also exempt from tax if generated through licensed or authorized activities. For corporations, crypto turnover is exempt from corporate profit tax through 2028, with standard corporate rates of 15-20% applying thereafter. All crypto trades and associated fees are exempt from Value Added Tax (VAT). Regarding specific crypto activities, staking rewards are non-taxable if the operator is registered with NAPP. Mining rewards are 0% taxed if the operation is licensed, and special electricity tariffs are available for miners. Profits from Decentralized Finance (DeFi) activities, such as lending or yield farming, are tax-exempt if conducted through authorized wallets or platforms, however, offshore DeFi activities may not qualify for this exemption. Sales of Non-Fungible Tokens (NFTs) on Uzbek platforms are tax-exempt, but foreign sales require repatriation via a local VASP for the exemption to apply. Converting crypto to fiat currency or making crypto-to-crypto swaps are not taxable events, provided they are executed through licensed VASPs or exchanges. Looking ahead, Uzbekistan plans to phase in gradual crypto taxation. A Budget Memorandum for 2025-2027 proposes introducing a 3% Capital Gains Tax on retail transactions and a 5% tax on VASP income, expected to take effect by the fourth quarter of 2026. The current 0% tax regime will remain in place until Parliament formally passes this new legislation.