Uzbekistan President Signs Decree on Tax Exclusions, Blockchain Integration for Crypto

1614
Uzbekistan President Signs Decree on Tax Exclusions, Blockchain Integration for Crypto

Uzbekistan president has signed a decree on the integration and development of crypto mining, crypto assets, and blockchain technology with the aim of improving the modern digital economics and system of state administration inside the country.

Shavkat Mirziyoyev, the President of Uzbekistan signed a decree on 3rd of July with the goal for the development of digital economics in the Republic of Uzbekistan. This decree is signed with an aim to empower the digital economy development. The decree emphasizes that the crypto related activities, supercomputers, artificial intelligence (AI) and blockchain play a major role in the global development of digital economics. The decree also aims at introducing digital economics in Uzbekistan.

As per the decree, the ministry for development of information technologies and communications and the government office for project management allows to implement and design a blockchain development program from the year 2018 to 2020.

Beginning from 1 January 2021 blockchain will be added into the agencies of government with the aim of identifying and verifying information, in clearing transactions and in corporate management systems. In addition to this people need to take special licenses if they are willing to do business in the sector of crypto assets along with the crypto exchange operations.

The decree also provides a restrained tax regime which is entitled to crypto assets. Some exceptional regulatory legal acts are responsible for the turnover of crypto assets but this turnover related operations are not eligible for taxation.  Also, the revenue which is received does not have a tax base.

Uzbekistan will regulate cryptocurrency and blockchain in the month of September this year as per the reports published in February 2018. The “Skill Center for Blockchain” will start operating from July end.

UzbekHydroEnergo and JSC Uzbekenergo the two providers of hydroelectric power are also planning to develop a pilot project in a period of three months which is related to the activities of crypto active assets and elements of the digital economy. The legislative proceedings which were held in Malta are followed closely by the presidential decree. This makes the country counts among the few countries in the world to give importance to cryptocurrencies.

Tax benefits are also mentioned in the decree in favor of the crypto sphere which in turn will benefit individuals and the companies both. As per a passage stated in the presidential decree, it is mentioned that all the operations of individuals and legal persons which are related to the transactions of the crypto assets are not included in the tax. This will also include the operations which are performed by the non-residents.

This spring, Kyrgyzstan another central Asian country has revealed its plans for the patent records which are digitized and to develop a database which is based on the blockchain. This will be done for the State Patent Office of Kyrgyzstan known as KyrgyzPatent in association with the Russian National Intellectual Property Transactions Coordination Center popularly known as IP chain.